HOVNANIAN ENTERPRISES HAS ACQUIRED the home building assets of Rocky Gorge Homes in Maryland and Virginia for an undisclosed purchase price paid in cash. The acquisition includes 133 homes in backlog and control of approximately 1,250 lots in the greater Washington, D.C., area. Hovnanian was and remains the second-largest home builder in the metropolitan capital area. NVR/Ryan Homes/NV Homes dominates the new home market in the region with 11.1 percent of the 30,755 new homes built in 2003, according to The Meyers Group.
Hovnanian is spreading far and fast. This acquisition follows the establishment last spring of a home-grown Hovnanian division in Minneapolis/St. Paul. In late August, Fortune magazine ranked Hovnanian 12th in the list of the 100 fastest-growing companies in the U.S.; that's an improvement from 15th place in 2003.
Rocky Gorge Homes is headquartered in McLean, Va., and both develops land and designs, constructs, markets, and sells single-family and multifamily homes in Maryland, Virginia, and the District of Columbia. Its homes are priced from $350,000 to more than $750,000. For its fiscal year ended March 31, Rocky Gorge delivered 79 homes with an average sales price of $481,000.
Hovnanian, which is headquartered in Red Bank, N.J., builds in Arizona, California, Florida, Maryland, New Jersey, New York, Michigan, Minnesota, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia. In September, Hovnanian reported a net income of $86.7 million on $1.1 billion in total revenue—for the third quarter ended July 31—on third-quarter deliveries of 3,765 homes. Contract backlog increased to 8,501 homes compared to 5,741 homes in last year's third quarter.