Northern Virginia’s largest home builder recently got bigger with the acquisition of Arcadia Communities, LLC from Arcadia Development Co.
Van Metre Companies completed the transaction on Oct. 20 and acquired about 1,500 lots and land within 10 communities in the Washington D.C. metro area, primarily in Loudoun County, Va. and also eastern West Virginia and Frederick County, Va. Acadia homes run from the $200,00's in West Virginia and the Shenandoah Valley to the $800,000's in the Willowsford master-planned community in Ashburn, Va.
“The acquisition of Arcadia Communities, L.L.C. enables us to bring the quality and integrity that defines Van Metre to a new portfolio,” said Rick Rabil, CEO of Van Metre. “In targeting Arcadia Communities, we identified an opportunity to acquire a company with similar values to Van Metre, and with a land position and home portfolio that will enhance and complement our current operations.”
In 2014, Van Metre, which is based in Fairfax, Va. and founded in 1955, was the 72nd largest home builder in the United States with 521 closings and $336 million in revenue, according to the BUILDER 100. Prior to the acquisition, Van Metre had 2,500 lots in Northern Virginia and now boasts approximately 4,000 in and around the area. Van Metre also builds apartments, produces condos, townhomes, and single-family homes from the $300,000's to more than $1 million. It's homes are closer to Washington D.C.
“This acquisition represents a major milestone for the company, and reinforces Van Metre’s commitment to grow the company for future generations,” Van Metre’s Chairman Beau Van Metre said. “We expect a seamless transition.”
Leesburg, Va.-based Arcadia builds homes and townhouses, predominately in Virginia, but also has two communities in West Virginia. According to Ben Sage, director of Metrostudy's Mid-Atlantic region, Arcadia started 117 new homes from January through September this year.
“Arcadia has a couple of choice properties in Loudoun [County] so this will give Van Metre a little more longevity and market share in Loudoun,” says Sage, adding that several builders were bidding for Arcadia. “I think a lot of people in this industry were surprised that a public builder didn’t make this acquisition.”
Wells Fargo provided financing for the transaction, though no sales price was announced. Bird Anderson, executive vice president, said, “This is a marquee transaction, and we are delighted to provide the financing for this important client.”
Though not all the properties
acquired are in Northern Virginia, Sage believes Van Metre wanted to bolster
its portfolio in its strongest area.” It gives them a stronger foothold in
their favorite submarket: Loudoun County,” he says.