Creating wealth in the 21st century

by Robert Powell
Virginia Business
June 2006

Americans are fascinated by wealth. We want to know how people from humble backgrounds become wealthy in today’s economy. We’ve heard the stories of the oil barons and the captains of industry who created commercial empires in the 19th and 20th centuries. But, we wonder, how does someone become rich today in a complicated, high-tech society?
This year’s installment of the Virginia 100 offers an answer to that question. We profile six people (two of them a couple) as part of our annual list of the state’s richest people. Three of the profiles concern people who have made fortunes through technology services. Our cover, for example, features Rajendra and Neera Singh, whose innovative techniques revolutionized the way in which cellular telephone companies positioned their transmission towers.

Another profile subject, Dan Hoffler, made his money in a more traditional fashion, through real estate development. His company, Armada Hoffler, is the force behind the Town Center of Virginia Beach, a $500 million, mixed-use development that is creating a downtown for the state’s largest city.
This private-public project is an example of how wealth and vision can be used to change cities. Nearby, the downtowns of Richmond and Norfolk are being revitalized by real estate investments, which include the construction of high-rise luxury condominiums. Contributing writer Lisa Antonelli Bacon of Richmond reports that these new residences are drawing many empty nesters who are tired of their suburban trappings.

Wealth also is helping to shape the state’s public institutions, including its engineering schools. Ernst Volgenau, the founder of Reston-based SRA International, has given $10 million to George Mason University in an effort to bolster its efforts to produce more engineers. In fact, contributing writer Heather B. Hayes of Clifford reports that many executives and university officials believe that the nation could face a crisis if it does not interest more students in pursuing engineering.

Finally, increasing wealth is also evident in the changing character of Smith Mountain Lake. The 40-year-old, man-made lake has long been a favorite vacation spot. Now, many people are living permanently at the lake and building million-dollar homes. Contributing writer Deborah Nason of Roanoke reports that the lake’s growing, full-time population has sparked a corresponding increase in commercial development and a concern about spoiling the lake’s charm.

That points out the other side of our fascination with wealth. Not only do we want to know who has money but what do they do with it. This month’s issue shows that wealth can have a transforming effect on people and places.