KB Home is following in the steps of Choice Homes and Comstock Homebuilding Cos. by pulling out of the Atlanta market.
KB spokesperson Cara Kane stated in an email: "KB Home has made the strategic decision not to invest in additional communities in Atlanta and make a gradual transition out of its operations in the market. We are committed to completing and delivering all of the homes that are currently under construction in our four active communities in the Atlanta area to the full satisfaction of those home buyers."
KB reported a 66% decrease in companywide net new-home orders to 2,578 in 3Q2008, down from 3,907 in 3Q2007, largely due to a 38% decrease in the number of active communities. KB has already pulled out of Chicago, Albuquerque, N.M., and Washington, D.C., markets this year. The company reported falling revenues from $1.54 billion in 3Q2007 to $681.6 million in 3Q2008.
In November, the Atlanta Business Chronicle reported that Choice and Comstock were pulling out of the market.
Calls to Choice and Comstock were not immediately returned.
Virginia-based Comstock Homebuilding Cos. most recently made headlines its numerous restructuring deals with lenders totaling more than $46 million, three of which called for "friendly foreclosures" in markets including Atlanta. In a Nov. 14 filing with the Securities and Exchange Commission, Comstock stated that the majority of the company's projects in Atlanta, as well as Washington, D.C., were inactive, "as they were either substantially complete or management elected to suspend construction activities indefinitely."
Choice Homes, a Texas-based private builder, no longer markets itself as an Atlanta builder on the company Web site, www.choicehomes.com.
Learn more about markets featured in this article: Atlanta, GA.