The Texas Builder Who Cracked the Code of Luxury Offsite, And Now is Giving It Away

Born from firsthand frustration, David Escobedo’s panelized steel system preserves design freedom, accelerates timelines, and raises the bar for quality in luxury homebuilding. Now, he's making it available to fellow builders
June 25, 2025
7 min read

Story at a Glance:

  • Second-generation builder David Escobedo built a panelized steel shell system that takes months off luxury builds, but preserves design complexity.
  • Unlike others in the space, Escobedo's 180-person team covers everything from computer modeling to fabrication to crane installation on the job site.
  • After 70+ projects, Escobedo is pivoting his business model to provide shell packages to fellow builders, targeting 30 such homes a year.

A 10,000-square-foot Colorado ranch erected in five days. No lumber piles, no weather delays. Just cranes setting precision-engineered steel panels into place.

This is the reality of DARIO, a panelized shell system that emerged from one builder's decades-long quest to reimagine construction itself.

From frustration to innovation

David Escobedo, a second-generation builder who spent summers framing homes under the scorching Texas sun, trained with his father for 18 years and lived all the frustrations of traditional building methods.

"I was the guy banging the nails, standing in the sun and then not being able to work some days because of rain," he recalls, "and I said, 'there's got to be a better way.'"

Now decades later, Escobedo has built not only what he says is a new method of construction, but also the future of construction. Because it delivers what the industry has always promised but never really achieved: faster, cleaner, more precise building without limiting what architects can design.

"There's not any drawing put in front of us that we can't build," Escobedo says.

After fine-tuning his system across 70+ projects—ranging from 600-square-foot pandemic cabins to a 36,000-square-foot estate—Escobedo Group is now opening up its Dario platform to other builders. Named in tribute to his father, the method offers a way out of stick framing's limitations without the design tradeoffs common in more conventional offsite solutions.

"There's not any drawing put in front of us that we can't build,"

- David Escobedo, Escobedo Group

The 'future of construction'

Today, Escobedo leads a team of 180 in a vertically integrated operation that self-performs roughly 90% of the construction scope: framing, millwork, architectural metals, and stone. Based just south of Austin, their 60,000-square-foot facility sits on 11 acres and houses in-house fabrication, proprietary software, and custom panelized assemblies.

That integration allows production streams to run in parallel, with cabinetry and stonework underway while framing is fabricated, shaving months off the schedule in large homes.

"I've coined it as 'the future of construction' because it is," says Escobedo.

He says similar methods of construction have been standard in Europe and Asia for years. But in the US, he says, the resistance often comes down to habit.

"I'll ask a plumber why we're burying copper pipe in concrete, knowing it's corrosive, and the answer is always, 'That's the way we were taught.' There's no technical reason," he says. "That line of thinking — challenging the default — that's the innovation."

 

The path to steel

Escobedo was "born and raised" in construction, but his path toward innovation began early. After relocating his family to Austin in 1983, he followed in his father's footsteps, starting with concrete and framing work.

"People said, 'No one does that,'" he recalls. But clients quickly saw the advantage of a single contractor who could perform multiple trades. "'That's better for us,' they would say. It's one less to manage.'"

From there, he expanded into stone, then millwork, and then cabinetry (his father's specialty).

"There are very few trades out there that meet my expectations, so that's one reason we started doing it ourselves," Escobedo says.

A turning point came in 1992, when he was tapped to serve as general contractor for a high-end residence in the Texas Hill Country. The client, a designer for the Sultan of Brunei's private aircraft, wanted a residence built to last for generations.

"He wanted a legacy home," Escobedo says. "Concrete, steel, stone. Things that last a very long time."

That project introduced him to the performance benefits of steel: greater longevity, precision, and resistance to warping or rot; problems that lumber framing often struggles with, especially in demanding climates.

No one is doing what we do 100%.

- David Escobedo, Escobedo Group

Dario system takes shape

But it wasn't until about a decade ago that Escobedo began to rethink how steel construction itself could evolve. Why not build in a controlled environment and simply assemble on-site, he wondered.

He had the opportunity to test the idea on another project in the Texas Hill Country, building six cabins for a ranch.

"I told them I wanted to do it offsite, and they agreed."

From there, he continued refining the offsite approach exclusively within his own company. Builders took notice early, but Escobedo says he deliberately held back.

"Because of who I am, I wanted to get it right," he says. "It's computer-heavy; it tells us exactly where every stud goes. But it can also go as deep as where every light fixture and towel hook belongs."

He admits the hardest part was getting the model out of the office and onto the floor. "I can build [the panels] all day long," he says. "But it took about six years of refining, and by the seventh, I finally felt ready to produce more quickly."

Since then, Escobedo says every project his company builds now uses the Dario system exclusively. Last fall, he opened it up to other builders. But this isn't prefab or modular in the conventional sense; there's no catalog of designs, no cookie-cutter templates, and no attempt to replace the builder.

"I call it an alternative construction method," says Escobedo. "We're not trying to reinvent the wheel."

Overcoming skepticism

Still, misconceptions linger. The most persistent is that offsite or panelized construction only works for simple, modern homes. That perception isn't limited to clients—design pros and builders carry it, too. A recent builders survey by Home Innovation Research Labs found that 51% of builders believe their projects are too complex for offsite methods, while 35% worry their clients wouldn't accept it.

Escobedo sees the relationship between technology and craft differently. "Even Leonardo da Vinci had helpers—his 'CNCs' came in and beat the stone up, then he'd come in and do the final detail," he explains.

It’s really just a matter of applying the same efficiency to modern construction problems.

"I'm just speeding up the process."

While Dario carries a slight premium upfront, the time savings create favorable economics. "It's a little more expensive, but when you factor in the time savings, it's a wash or better," Escobedo explains. "Especially for clients carrying construction loans, it’s six months less interest."

At its core, Dario is about control: over design, quality, labor, and schedule. It's a systemized shell that supports custom architecture—built offsite and delivered ready for Escobedo's team to install.

Currently serving Texas, Colorado, and Oklahoma, Escobedo says interest extends far beyond these regions. Markets like California, with stringent codes, labor shortages, and wildfire recovery underway, are naturally drawn to Dario's controlled-environment advantages.

"LA keeps knocking," he says. "And we knew they would."

 

Scaling for the future

Now, Escobedo’s business model is shifting rapidly. "Right now, we can only handle 3 to 5 projects a year doing everything in-house," Escobedo explains. "With shell packages for other builders, we're talking 30 homes annually. Our goal is to flip from 90% general contracting to 90% shell work.”

Asked how soon he sees that playing out, and he responds, “It's going to happen pretty darn quick."

Escobedo’s Dario innovation reflects a deeper philosophy about leveraging technology to enhance rather than replace craftsmanship. Just as his CNC machines cut cabinetry carcasses with precision his craftsmen can't match—freeing them to focus on black walnut faces and intricate details—the Dario system handles the precision framing work so builders and artisans can concentrate on what they do best.

"There's no reason for a craftsman to cut plywood to make a box when technology can do it better," he says. "And there's no reason for builders to struggle with imprecise stick framing when we can deliver perfect panels ready for installation."

Escobedo knows his approach may challenge conventional thinking. "I've rattled the cage a little bit," he admits. But then again, that's always been his way.

 

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About the Author

Pauline Hammerbeck

Pauline Hammerbeck is Editor of Custom Builder, overseeing coverage for custom home builders and their architect and design partners. She also serves as a Senior Editor at Pro Builder, where she directs products coverage and the MVP Product Awards. With experience across architecture, real estate, retail and design, Pauline brings broad experience to her work. She lives in an American Foursquare and has strong opinions on Brutalism. Reach her at [email protected].

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