Dive Brief:
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This past weekend was a busy one for CalAtlantic Homes, which opened six communities in key markets around the country, Builder magazine reported.
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The grand openings included Olde Woodward Mill, near Atlanta, with homes starting in the mid-$300,000s; Remington Pointe North, a community northwest of Chicago with homes starting in the low-$200,000s; Waters Edge at Central Park, an upscale townhome development in suburban Minneapolis with home prices starting in the mid- to high-$200,000s; and Tavara Ridge, a San Diego community where prices will start in the high $800,000s.
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Additionally, in Texas, CalAtlantic began selling homes in the upscale Legacy Trails, located in the hill country of Dripping Springs, near Austin, and, north of Houston, Vistas at Klein Lake. Homes in both communities start in the $400,000s.
Dive Insight:
CalAtlantic’s banner weekend comes a year and a half after it was formed from the merger of The Ryland Group and Standard Pacific Homes. Today, the company has a $4.33 billion market cap.
The merger combined two multi-regional powerhouses into the nation’s No. 5 builder, Builder noted. Not only did the builders have little geographic overlap, they each brought unique strengths, with Standard Pacific known for its higher-end offerings and design and placemaking savvy, and Ryland offering sales and operations prowess and lots ideal for entry-level buyers.
In its last quarterly earnings report, CalAtlantic beat analysts’ earnings per share estimates by $0.16. Though revenues narrowly missed analysts’ predictions, the builder’s quarterly home-sales revenue climbed 18% on the year prior to $2 billion. The company will announce its earnings for the first quarter of 2017 later this week.
The Waters Edge community in the Twin Cities is one of 17 CalAtlantic is planning there this year — moves that the Minneapolis-St. Paul Business Journal expects will push the builder to No. 1 in that market.
Meanwhile, in San Diego, Tavara Ridge is one of 23 communities there that CalAtlantic is selling, preparing to open or has recently completed sales. Growth in that market has slowed below the national average in recent months, The San Diego Union-Tribune reported, with a 5.7% increase in home prices versus 5.9% nationwide. Median home prices in San Diego County were stable in January, sitting at $495,000 for the third-straight month after falling from $507,500 in October.
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