IRVINE, CALIF.-BASED STANDARD PACIFIC deepened its presence in Arizona by purchasing Tucson's Kemmerly Homes in late August. Kemmerly, which has operated in Tucson since 1993 under the Kemmerly and Miramonte Homes brands, expects to deliver about 180 homes in 2004, with revenues of $47.5 million.
The acquisition adds 1,100 lots to Standard Pacific's expansion plans in the Grand Canyon state. The nation's 11th largest home builder (based on 2003 closings) expects to sell 1,700 homes in metropolitan Phoenix this year alone, generating $310 million in revenues from 20 ongoing projects.
The price of a Standard Pacific home in Arizona averaged $192,000 in the quarter ending June 30—about half the company's average of $382,000.
Chris Kemmerly, a third-generation home builder best known for custom home and infill projects, will serve as the new Tucson division president for Standard Pacific. The company, “plans to retain substantially all of Kemmerly Homes' staff,” according to Kathy Wade, Standard Pacific Southwest regional president. As a result of this purchase, the top seven builders in Tucson are now all national home builders.
Arizona, California, and Florida continue to drive about 80 percent of Standard Pacific's unit volume. Second quarter deliveries were up 29 percent in California and 11 percent in Arizona over last year, but down in Florida. Yet overall, they're on track to total 9,500 for the year (compared to 8,213 in 2003), according to CEO Stephen Scarborough. Net income for the quarter was up 43 percent over the prior year—to $60 million—on home building revenues of $769 million, which were up 49 percent.
Learn more about markets featured in this article: Phoenix, AZ.
