May 2005

Morning Star Business Report, May 2005
Spending a few minutes talking to Preston and Chris Schell together in one room is a little like watching a tennis match. There’s the conversational serve, followed by a volley of exchange, discussion, argument, and finally a game point of agreement. One can get whiplash trying to keep up as the two identical twin brothers and business partners finish each other’s sentences, agree to disagree, and generally interact at breakneck speed. The pace of these daily, sometimes hourly, conversations has become even more rapid over the past few years since the twins formed Schell Brothers, the fastest growing construction company in Delaware. We’ve been best friends all our lives,” says Preston. “We each know how the other one will think and react in so many different situations that working together has been seamless. I can’t imagine a more ideal business situation than the one we have together here in Sussex County with both Ocean Atlantic and Schell Brothers.”
First and foremost, the twins share an inherent love and respect for Delaware and Sussex County in particular. The Schell roots are deep-seated here with their extended family able to trace back their Delawarean heritage to the state’s inception. Preston and Chris spent many summers playing on the local beaches and exploring the natural beauty of this idyllic wonderland. “We spent summers on Lewes Beach with our cousins,” explains Chris. “We would count down the days until the end of school each year so we could get back to Delaware.” They were lifeguards on both the Rehoboth Beach Patrol for many years and had part-time jobs doing landscaping and grounds work for local residents.
The twins’ first true separation came when they decided to attend different colleges after high school. Both attended schools in Massachusetts with Pres going to Amherst College and Chris to MIT. Although the two remained inseparable, they began to realize they had complementary skill sets. Preston focused on psychology and literature while Chris excelled in science and math. Different career paths beckoned after graduation as Preston accepted an investment banking job with Merrill Lynch in Chicago, IL and Chris began working for Marty Schwartz, the legendary commodity trader in Florida. However, the twins both missed Delaware’s natural beauty and became determined to return to the beach area and their roots.
Preston returned to the area first in 1997 and was taken under the wing of a local real estate developer, Gene Lankford, who also owns two hotels in the area, the Atlantic Sands and The Breakers. Together with Justin Healy, they built Ocean Atlantic Associates and Agency into a strong and successful real estate development and sales company in the area. Chris decided to move back to Sussex County in 1998 but remained involved in hedge fund management until 2001 when both twins decided to attend Harvard Business School (HBS) with the goal of furthering their education and business knowledge. “Our dad encouraged us to apply to HBS and once we were both accepted, we knew it was the right thing to do although neither one of us wanted to leave Delaware again,” said Preston.
After graduation from business school in June 2002, Preston immediately returned to Rehoboth Beach and resumed management of Ocean Atlantic Associates. A few months later, Chris proposed starting a construction company to Preston and the idea of Schell Brothers Construction was formed. Since Schell Brothers’ inception, Chris has worked to apply his strengths in mechanical engineering, science, and math into creating a construction company focused on providing their customers with the best building experience in the industry. Chris’ mission from day one at Schell Brothers has been to use a combination of buying power, the highest quality materials, and the best possible service to create a unique home building experience. As further explained by Maureen Kearns, Marketing Manager at Schell Brothers, “Chris has encouraged everyone in the company to explore new possibilities and options in all of these areas and really work to exceed our customers’ expectations.”
Over the past two years, Schell Brothers has grown quickly and now directly employs over 30 people, manages more than $40 million dollars in construction and is experienced in building single-family, multi-family and commercial real estate. However, Chris’ true personal passion lies within building high-end custom homes. After many discussions, the next chapter of this construction company has been born – Echelon Custom Homes. Under Chris’ direction, Echelon Homes is currently building two high-profile custom homes in the area, one in Wolfe Pointe in Lewes and the other at The Peninsula on the Indian River Bay in Long Neck. “Echelon Homes is focused on providing customers with a truly personalized, custom home buying experience,” says Christine Thomas, Director of Echelon Homes. “We will go the extra mile to help our customers realize, achieve, and build the vision of their dream home.”
Even with all their associated companies running at full-speed, Preston and Chris Schell try to remain focused on giving back to the community which has provided them with so much happiness and opportunity. A favorite project is the non-profit Sussex County Land Trust (SCLT) organization that Preston and Craig Hudson, a local real estate business partner, founded in 2001. The Trust is dedicated to protecting natural, cultural, agricultural, and recreational resources in southern Delaware through land preservation, stewardship, and education. The two have currently donated over $750,000 to the Trust and are on track to contribute another $2,000,000 over the next three years. Since its formation, the county and other local developers have enthusiastically embraced the organization, contributing close to another $2 million and pledging part of their annual budgets towards its success. Thus far, over 2,500 acres of prime area land has been permanently preserved. In addition, partnerships with the Nature Conservancy have led to the preservation of over 600 acres of pristine pastures and wetlands along the coast, which were under extreme development pressure. The Schell family is also involved in the Greater Lewes Foundation and the twins’ parents, Joe and Debbie Schell, are the Chairs of the Friends of the Lewes Canalfront Park Project working to raise funds for the restoration, construction, maintenance, and canalfront operations in Lewes.
Currently, Ocean Atlantic Associates is growing rapidly, with over 8,000 homes under development in both North Carolina and Delaware. The company, in conjunction with Schell Brothers, is working to incorporate community values and atmospheres into their neighborhood designs. For example, Paynter’s Mill in Lewes, DE features a closely knit community plan with neighborhood walking paths, wooded parkland, and Paynter’s Meadow, a community field for outdoor gatherings and sports activities. Also under development, the Vineyards at Nassau Valley in Lewes, DE, is located within the confines of the only operating vineyard in the state of Delaware, Nassau Valley Vineyards. The current landowner, Bob Raley, first introduced the vision for this community in an effort to preserve the vineyard’s inherent beauty. Architectural styles, amenities, and scenic features utilized throughout this development will offer a unique living experience for residents as well as maintain the natural beauty of this exceptional setting.
“We are working to preserve the inherent beauty of this area in the communities we develop and build,” said Preston. “Our family plans on living in this community for the foreseeable future and it’s of the utmost importance to both Chris and me to be able to care for and maintain the land that we fell in love with 30 years ago so our children will be able to have the same wonderful experiences we did growing up here.” And so, as the daily volley of exchange, argument, agreement, and discussion goes on, it looks as though Preston and Chris Schell will continue to be a formidable doubles team – as business partners, friends, and brothers.