Toll Brothers, Inc., (NYSE:TOL) late last week moved into the Charleston, Greenville, and Myrtle Beach, South Carolina markets through the acquisition of Sabal Homes, a top private home building company based in Mount Pleasant, South Carolina.
Sabal Homes was founded in 2005 by Matt Jones, Jason Simpson, and Todd Ussery and has built more than 1,375 new homes in South Carolina since inception. The company targets first-time, move-up, and move-down buyers at price points from the high $200,000s to more than $700,000. At the date of acquisition, the company had approximately $30 million in backlog consisting of 80 homes with an average price of $380,000.
Including the existing backlog, Toll Brothers acquired approximately 1,600 lots owned and controlled throughout Charleston, Greenville, and Myrtle Beach. The acquisition will increase Toll Brothers’ selling community count by approximately 11 communities as of the closing date.
Douglas C. Yearley, Jr., Toll Brothers’ chairman and chief executive officer, stated: “We are thrilled to be joining with Sabal Homes, whose teams will enable us to continue to expand our operations in the Southeast. Charleston, Myrtle Beach, and Greenville are vibrant Top-50 housing markets with favorable demographics and strong population growth. Consistent with our recent acquisition of Sharp Residential in Atlanta, Sabal’s diverse product mix, including homes for first-time, move-up and move-down buyers, will support our strategy of broadening the range of product lines and price points we are offering.”
Matt Jones, co-founder of Sabal Homes, stated: “We are excited to join the Toll Brothers family and look forward to their support in expanding our operations in the South Carolina market. We are confident that the relationships we have built over the past 15 years, combined with Toll Brothers’ financial resources, will accelerate our growth here in South Carolina.”
Zelman Partners LLC acted as exclusive financial advisor to Sabal Homes.