Neumann Buys Tadian Making good on its growth-by-acquisition strategy, Warrenville, Ill.-based Neumann Homes has bought Tadian Homes, thus establishing a foothold in the Detroit-area. With the acquisition, Neumann, which closed more than 500 homes at 30 different communities in 2004, started 2005 with combined home closings in excess of 2,400 and revenue of more than $600 million.
“It's certainly a very big event in terms of growth of the business,” says Kenneth Neumann, president and CEO of Neumann Homes. Neumann says the acquisition represents the precise manner in which he'd like to keep growing the company. “Our acquisition of Tadian Homes is a model of how we plan to continue our growth into new markets,” he says.
“[Tadian] achieved an impressive position as an independent builder, but to allow its team to evolve to the next level, the organization recognized the need to tie into the consolidated procurement, training, and marketing systems of a national builder like Neumann Homes,” says Neumann. Still, he emphasizes that the builder will continue its philosophy of encouraging company components to operate independently. “Anything we do there, we'll do at their request,” he says.
Pulte Pitches In Pulte Homes has pledged $500,000 to benefit two charitable organizations working to help those devastated by the tsunami in South Asia. The builder will also match all funds donated by its 13,000-plus employees, up to an additional $100,000.
Accolades for Weekley Fortune magazine has named David Weekley Homes to its 2005 list of “100 Best Companies to Work For.” The home builder, which employs more than 1,200 people, ranked 21st on the prestigious list. David Weekley boasts strong professional development and employee rewards programs, among other employee-focused initiatives.
KB Tops Builders on Power Broker List Bruce Karatz, chairman and CEO of KB Home, was recently ranked No. 6 on BUILDER magazine's December 2004 list of the industry's 50 most influential people—placing him as the highest ranked builder executive among the industry's “Power Brokers.” Alan Greenspan topped the list, which includes economists, bankers, architects, manufacturers, developers, and, of course, builders.
TOUSA Joint Venture In December, Technical Olympic USA announced the formation of a joint venture with Sunbelt Holdings in Scottsdale, Ariz., for the land and construction of single-family homes. At its inception, the partnership acquired eight existing TOUSA communities in Phoenix, and it is expected to deliver 600 homes in 2005. In addition to the equity contributions from the partners, the venture is funded by non-recourse financing with aggregate capacities of $180 million.
K. Hov Launches Web Site In an effort to build stronger partnerships with landholders and municipalities considering redevelopment, K. Hovnanian Homes has launched a Web site specifically devoted to community redevelopment and rehabilitation. The site, www.redevelopment.khov.com, offers articles about land-use practices and issues and includes photos of redevelopment sites in New Jersey, Pennsylvania, and California. “After 20 years, K. Hov has learned the ins and outs of redevelopment,” says Joe Riggs, group president, adding that this Web site offers a place to explore many of new ideas and new trends in redevelopment.
Comstock Goes Public Reston, Va.-based Comstock Home-building Co. announced on December 14 that the initial public offering of 3,960,000 shares of its Class A Common Stock were listed on NASDAQ National Market under the symbol “CHCI” priced at $16.00 a share. On Jan. 3, 2005, the company reported that its lead underwriter, BB&T Capital Markets, exercised its over-allotment option to purchase 594,000 shares—representing $8,838,720 in net proceeds to the company.
Comstock is a production home builder that markets single-family homes, town-houses, and condominiums in Washington, D.C., and Raleigh, N.C. Since its inception in 1985, the company has delivered 2,500 homes valued at more than $500 million.