Production home builder mergers and acquisition's 2014 juggernaut continues with the announcement yesterday that Colorado-based Century Communities will pick up the Las Vegas operations team and 1,849 lots of Dunhill Homes.
The buy gives Century a solidly-performing local intel and operations base in Las Vegas, expanding its foot-print and its opportunity beyond the Colorado and Texas markets. Here's the verbiage from the press statement.
Century Communities, Inc. (the “Company”), a leading builder of upscale single-family homes, townhomes and flats in select markets, today announced that it has completed the acquisition of the operations and assets of Dunhill Homes Las Vegas Operations. The strategic acquisition continues Century Communities’ strategy of expanding into markets with strong economic fundamentals, through a platform to provide appropriate operational and marketing efficiencies.
“We are extremely excited to build an immediate presence in Las Vegas with the closing of this transaction, which highlights the continuation of our strategy to focus on the best locations in markets with favorable demographics and economic growth,” stated Robert Francescon and Dale Francescon, Co-Chief Executive Officers of Century Communities. “More than the homes and land inventory, this acquisition allows us to add an experienced operations team, with a reputation of delivering quality homes in well-located communities. Additionally, Las Vegas remains a land constrained market, and we are now uniquely positioned within communities that would be very difficult to replicate today, with land inventory to drive future growth.”
The Company acquired land, homes under construction and model homes in five communities, two of which are fully amenitized, master plan communities. The communities offer one- and two-story single family homes with sizes ranging from 1,350 square feet to nearly 3,700 square feet. The homes boast bright and open floor plans with smart, livable designs and provide for extensive options. In addition, two of the master planned communities include 18-hole championship golf courses as well as 35,000 square foot recreation centers with resort-style swimming pools and state-of-the-art fitness facilities.
As a result of this transaction Century Communities now owns 1,849 lots in Las Vegas. The acquisition brings the Company’s total land position of owned and controlled lots to 10,095, an increase of 21% since the end of 2013.
The buy of Dunhill's Vegas unit has a colorful, which is not to say "benighted" backstory, tied to the mercurial fortunes of Vegas home-building player Jim Rhodes. Dunhill had taken control of the parcels in 2010, the outcome of a bankruptcy deal.
At the time, Dunhill noted the strengths of the team it put in place.
Dunhill Homes' leadership has significant experience in the Las Vegas Valley. The company's Chairman is Richard Dix, former Mountain West Area President for Pulte Homes based in Las Vegas.
Dunhill's operations in Las Vegas will be led by Division President Don Boettcher, a homebuilding industry veteran of more than 25 years. Mr. Boettcher most recently served on the executive management team for Pulte Homes' Las Vegas division and worked with Pulte in various leadership roles throughout his career. His experience building in the Las Vegas Valley dates back to 1994.
Kevin Corbett will serve as Vice President of Finance for the division. He offers many years of real estate experience in Las Vegas, including significant tenures with Centex Homes and Engle Homes.
M&A is one of the themes of 2014 in home building. Stay tuned.
Learn more about markets featured in this article: Las Vegas, NV.