Toll Brothers, Inc., (NYSE:TOL) has announced its expansion into the Atlanta, Georgia market through the acquisition of Sharp Residential, one of the largest private home building companies in Atlanta. The purchase price was paid in cash but not disclosed.
Sharp Residential was founded in 1991 by Tom Sharp and has delivered over 5,000 homes in the Atlanta market since its inception. The company focuses primarily on the area’s northern suburbs with homes ranging from first-time to luxury at price points from the $300,000s to the $900,000s. At the date of acquisition, the company had approximately $65 million in backlog consisting of 125 homes with an average price of $520,000.
Including the existing backlog, Toll Brothers acquired approximately 900 lots owned and controlled in the Atlanta MSA. The acquisition will increase Toll Brothers’ selling community count by approximately 10 communities as of the closing date.
Douglas C. Yearley, Jr., Toll Brothers’ chairman and CEO, stated: “Atlanta was the largest U.S. housing market where we did not operate. We believe joining with Sharp Residential is the ideal way for us to enter and grow quickly in this robust market. As one of Atlanta’s premier home builders, the diversity of their product lines will enable us to offer a broad range of communities to the upscale market. We are confident that their experienced management team, great land positions, reputation for fine quality homes, and long-established local relationships will be a formula for our success in the Atlanta market. Given the size, depth and demographics of this market, we are very excited with the opportunities ahead.”
Tom Sharp, founder and president of Sharp Residential, stated: “Based on our nearly thirty years building homes and serving customers in the Atlanta market, we see significant opportunity for continued growth as we join the Toll Brothers family. We are confident that our knowledge of and reputation in the market, combined with Toll Brothers’ great brand and resources, will enable us, together, to grow and succeed in the Atlanta market. We look forward to an exciting future as a member of the Toll Brothers team.”
Zelman Partners LLC acted as exclusive financial advisor to Sharp Residential.