By BUILDER Magazine Staff
Lennar has signed an agreement to purchase Patriot Homes, a leading home builder in the Baltimore marketplace, for an undisclosed price. During fiscal 2001, Patriot will deliver approximately 350 homes at an average sales price of approximately $275,000. Closing is expected this month.
"We have said for some time that the Baltimore/Washington market is very desirable," explains Marshal Ames, Lennar's investor relations director. Lennar's U.S. Home division has several upscale communities in the Baltimore/ Washington region. As one of the nation's fastest growing markets, the area also is attractive to home builders because with its large, stable federal workforce, it is somewhat recession resistant.
Ames says Lennar remains in acquisition mode. "When you look over our history we have been in an inquisitive mode whenever opportunities meet our criteria. This acquisition and recent mergers by other builders confirms Wall Street's determination that there is need for more consolidation in the industry."
Rick Kunkle, co-founder of Patriot, will remain with the company. He has 20 years of home building experience in the Baltimore market. Kunkle "will play a vital role in Lennar's continued expansion in the Mid-Atlantic region," says Robert Strudler, Lennar's COO.
Lennar Corp., founded in 1954, is headquartered in Miami and has home building operations in 14 states. It builds affordable, move-up, and retirement housing. Lennar's divisions include Lennar Homes, U.S. Home, Greystone, Village Builders, Renaissance, Orrin Thompson, Lundgren Bros., Winncrest, and Rutenberg Homes.