By Jill Ralph. New Jersey-based K. Hovnanian Enterprises has found an entry point into Houston's lucrative home building business. Through the purchase of Parkside Homes' assets, K. Hovnanian is gaining control of about 2,200 lots in the Houston area -- a significant platform expansion.
Parkside Homes is ranked as the 27th largest builder in Houston, with an average selling price of $118,000. The company expects to have closed 300 homes in fiscal 2003. K. Hovnanian will price its entry level homes from $70,000 to $140,000.
"We'd like to grow the Houston operation from a few hundred deliveries to several thousand deliveries [per year]," says Kevin Hake, vice president and treasurer of K. Hovnanian. "We, at some point, are considering introducing active adult [homes] in Houston and other products Parkside does not build."
Mark Kaufman, an architect who founded Parkside Homes, will be part of Hovnanian Enterprises, holding the title of president of K. Hovnanian of Houston.
Published in BIG BUILDER Magazine, January 2003