ABJ: Collections company expands in Austin
Nov 5, 2010
http://www.bizjournals.com/austin/print-edition/2010/11/05/collections-company-expands-in-austin.html
Austin-based collections company Gila LLC will nearly double in size in the next two years, with a major expansion that will keep the company and hundreds of current and forthcoming jobs here.
Gila will start moving in December from its 32,000-square-foot space at 6505 Airport Blvd. near Highland Mall to a 54,865-square-foot spot at the Tuscany Technology Center on U.S. Highway 290 in Northeast Austin, CEO Bruce Cummings said.
“Relocating our corporate headquarters to Tuscany Technology Center will provide a superior platform for the company to continue both the business park’s and our growth and success,” Cummings said. “We explored other areas outside of Texas to expand our operation, but realized quickly that the state of Texas, and specifically Austin, offers the business-friendly climate and culture we want to foster in our business. We believe this move will be a great benefit to our valued employees by giving them the best work environment.”
Gila will occupy 11,000 square feet in mid-December and absorb the remaining 43,865 square feet through a phased expansion scheduled to be finished in May 2011, Cummings said. The completed tenant suite will include 24,500 square feet of traditional and executive office space and 30,365 square feet allocated to a customized call center, a breakroom and storage.
Gila’s relocation and expansion represents one of the largest lease transactions completed in the Austin office market in 2010. It equates to leasing the full building known as Tuscany Technology Center Building 4, part of the multibuilding business park developed by Chicago-based McShane Development Co.
Gila, founded in 1991, offers outsourced collections, payment processing and call center services primarily to government entities, such as the cities of Austin; Los Angeles; Atlanta; and Anchorage, Alaska; as well as Orange County, Calif.; and a few financial and higher educational institutions nationwide. The new location will offer more room for the company’s call center and house its administrative offices.
Gila was recently named to the Austin Business Journal’s Fast 50, a list of 50 of the fastest-growing companies in Central Texas. Gila was ranked No. 22 among the 25 companies on the list with $10 million or more in revenue. The company grew by 17 percent from 2007 to 2009, with revenue increasing from $21.8 million in 2007 to $30 million in 2009.
“Most collections companies focus on collecting credit card debt, but providing these services primarily to government entities is a growing area in the industry,” said Rozanne Andersen, CEO of the Association of Credit and Collection Professionals, a Minneapolis-based trade association that represents about 5,000 members with 91,000 employees in 65 countries. “Gila has been a member since it was a tiny company and has blossomed into one of the frontrunners in its segment of the collections industry.”
In addition to expanding its real estate footprint, job growth is under way at Gila. The company has about 370 staffers, having added about 100 employees since 2007. Cummings said the new location will enable the company to meet its growth forecast of hiring an additional 200 to 300 people in the next 12 to 24 months. The company is in the middle of adding 50 people immediately, he said.
Cummings said maintaining morale is important, given that the company’s line of work can be unpleasant for its workers because of the emotional and mental energy that goes into interacting with people who owe money to Gila’s clients.
“You hear a lot of sad stories and deal with irate people, so we have to be patient, flexible and compassionate,” Cummings said. “It’s important for our employees to be happy so they have the energy and strength to work on these collections and offer the best customer service.”
Gila has been recognized as one of the best places to work in collections by insideARM.com and the Best Companies Group for the second year in a row.
All of Gila’s calls are recorded in case anyone complains about the collection process, and the company will work with people to set up payment plans, Cummings said.
“The industry has changed in recent years and understands that you can’t just expect a single payment to come, especially with the economic climate as it is now,” Andersen said. “The companies that have done well understand that.”
In July, Gila was acquired by Austin-based Owner Resource Group for an undisclosed amount, but the company retained its top management. Owner Resource Group is a private equity and financial services company that invests in businesses with greater than $10 million in revenue and that it deems as having long-term growth prospects and capable management. Texas Capital Bank provided senior financing, and National City Equity Partners provided the subordinated debt financing. Roundtable Investment Partners LLC also participated in the investment.
Cadence McShane Construction Co. and architectural firm TAG International will provide design-build tenant improvement services. Chad Barrett, Robert Shore and Bart Matheney of AQUILA Commercial represented McShane Development in the lease transaction, while Gila was represented by John Bundy of Development 2000.
by Francisco Vara-Orta , ABJ Staff
