Stanley Martin Holdings has entered into an agreement to acquire land acquisition, development, and lot sales business Prestige Corporate Development as well as land development general contracting business Prestige Site Works. Both acquired companies are headquartered in the Charlotte, North Carolina, metro area.

“Stanley Martin’s growth strategy includes expanding beyond its core home building business into additional real estate segments,” says Stanley Martin president and CEO Steve Alloy. “The two Prestige companies will become our fourth and fifth subsidiary businesses, further enabling that expansion.”

In addition to the two new acquired subsidiaries, Stanley Martin Holdings’ brands include Stanley Martin Homes, Stanley Martin Custom Homes, First Heritage Mortgage, and First Excel Title.

Stanley Martin Homes, ranked No. 22 on the 2024 Builder 100 list, is a subsidiary of Japanese company Daiwa House Group. The Daiwa House portfolio of U.S. home builders also includes Texas-based CastleRock Communities (No. 52) and California-based Trumark Homes (No. 73).

In a news release announcing the acquisition, Daiwa House said the acquisition supports the company’s goal of achieving net sales of 730 billion yen in its U.S. businesses and achieving 10,000 closings by 2026. In 2023, the company’s three U.S.-based subsidiaries achieved 6,414 closings, according to figures reported on the Builder 100 list.

The Daiwa House Group is engaged in community-based businesses with the goal of achieving net sales of one trillion yen and operating income of 100 billion yen for overseas business in its seventh Medium-Term Management Plan, which runs through FY2026.

Prestige’s land development business involves contracting for land, obtaining entitlements, processing engineering plans, developing communities, and selling lots. The company has sold approximately 2,300 lots since commencing operations in December 2017. Prestige has secured approximately 8,050 lots of land scheduled for development as of December.

Prestige Site Works performs grading, installs utilities, and constructs roads. The company has capacity to develop approximately 2,300 lots per year, according to Daiwa House.

Prestige controls more than 8,000 lots in the greater Charlotte area and is actively performing site development work on 15 projects throughout North Carolina and South Carolina.

“I’ve embraced the challenge, found immense joy, and taken great pride in the growth and achievements of the Prestige team and family over the past six years,” Prestige owner Brian Mahoney says. “This acquisition marks the continuation and the beginning of exciting opportunities for growth and expansion for Prestige. I have full confidence in the leadership team at Prestige, our dedicated employees and families, and the synergistic blend of leadership, culture, and partnership offered by Stanley Martin Holdings.”

Daiwa House said the strong permit activity, employment situation, and population growth in Charlotte makes the metro an attractive market for operation.

“High housing demand alongside restricted supply makes Charlotte a favorable location for land investment, creating a favorable environment for acquiring the Prestige membership interests,” Daiwa House wrote in a news release. “Moreover, there is a high demand for land development general contracting services in the Southeast, creating an opportunity for Prestige Site Works to expand its geographic footprint.”

Maynard Nexsen provided legal representation for Stanley Martin, and Williams Parker represented the sellers. Whelan Advisory served as the exclusive financial adviser to Prestige in the transaction.