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On January 13, 1955, George Rosenthal and his father, David, founded Raleigh Construction Company, Inc. In its first decade, the company designed, developed, built, and sold tract homes. The first project, twenty-five homes, was in Garden Grove, California. After earning a profit of one thousand dollars per home at a sales price of $12,250, George knew he had found his calling.

Raleigh commenced a residential subdivision and development in San Carlos, California in 1957. This second venture, however, nearly destroyed the fledgling company. Torrential rains in the Bay Area of California that year threatened to wash away the newly graded lots. George and David spent long nights, in the rain, digging trenches to redirect the flow of water, to save the project.