CastleRock Communities, No. 61 on the 2023 Builder 100 list, announced the acquisition of most of the assets and operations of The Jones Company of Tennessee. CastleRock Communities is one of three U.S.-based operators majority-owned by Japanese company Daiwa House.
Houston-based CastleRock operated exclusively in Texas for its first 19 years of operations. However, shortly after the company joined forces with Daiwa House in 2021, CastleRock expanded into Arizona in 2023 with operations in the Phoenix and Prescott areas. The company closed 1,136 homes and generated $479 million in revenue in 2022, according to figures reported for the Builder 100 survey.
The acquisition marks the entrance into a new state for CastleRock. The Jones Company of Tennessee, ranked No. 146 on the Next 100 list, closed 344 homes in 2022 and has neighborhoods in Arrington, Fairview, Franklin, Hendersonville, Lebanon, Murfreesboro, Gallatin, and White House, Tennessee. Whelan Advisory acted as financial advisor to The Jones Company of Tennessee.
The Nashville market has received attention from national builders, with Century Communities acquiring Nashville-based Landmark Homes of Tennessee. The National Association of Realtors ranked the greater Nashville market No. 7 on its list of metros with the most pent-up demand, forecasting it to outperform other metro areas in 2024. Nashville also featured on Forbes Advisor’s list of the best metros for young professionals and ranked No. 6 on Zonda’s most recent Baby Chaser index.
In a release on the Daiwa House website, the Japanese company said CastleRock and The Jones Company share similar corporate cultures. Following the acquisition, CastleRock will take over The Jones Company’s business and business-related assets; members of The Jones Company management team and all employees plan to join CastleRock, according to Daiwa House.
Stanley Martin Homes, another of Daiwa House’s U.S. subsidiaries, has a strong presence in the Mid-Atlantic and the Southeast, while its third U.S. subsidiary, Trumark Homes, recently acquired Wathen Castanos, expanding its presence in the West.
Daiwa House said across its three U.S. subsidiaries, it supplied 6,010 homes in 2022 and plans to increase its deliveries to 10,000 homes in 2026.
The announcement of the acquisition comes less than a week after Sekisui House’s $4.9 billion blockbuster acquisition of M.D.C. Holdings. In mid-2022, M.D.C. Holdings announced a deal to acquire The Jones Company of Tennessee; however, the agreement was scratched two weeks later.
