The Village of Five Parks in Arvada is one of the communities built by Village homes.
William Lyon Homes Inc. which develops new home communities in California, Arizona and Nevada, today announced that it has acquired various entities which operate under the Village Homes name.
Village Homes builds in the Denver, Fort Collins and Granby markets. The acquisition marks William Lyon Homes Inc.?s entry into the Colorado market. The purchase price was not disclosed.
In 2009, Homebuilders Capital Solutions, an affiliate of Louisville-based Colorado & Santa Fe Real Estate, headed by Marcel Arsenault, bought the assets of bankrupt Village Homes for $21.9 million with Los Angeles-based Lowe Enterprises. Homebuilders Capital Solutions provided the majority of the financing for the purchase. Village Homes is the 15th most active homebuilder in the metro Denver this year, according to statistics from the Home Builders Association of Metro Denver.
Lyon Homes also has emerged from bankruptcy. It agreed to a voluntary bankrupty Chapter 11 reorganization approved by key stakeholders that in February provided??new capital investments of $85 million and strengthens the company?s long-term capital structure by eliminating short-term debt maturities and reducing interest expense.?About $180 million of its previously owed principal debt was eliminated, resulting in a 37 percent reduction in overall debt, the company said, at the time.
?The successful completion of this acquisition is another major accomplishment which will help William Lyon Homes continue to grow as a leader in the homebuilding industry,? William Lyon, the chairman and CEO of his namesake company, said about the purchase of Village Homes. ?Lyon is a retired Major General from the Air Force.
?Village Homes and its employees have developed an excellent reputation for quality and service and we welcome them to the William Lyon family,? he continued.
Village Homes was launched in 1984 and has sold more than 10,000 homes in the Denver area since that time. It received the Homebuilders Association of Denver?s 2012 ?Community of the Year? for its Village of Five Parks development in Arvada.?Village Homes currently operates five communities and owns and controls more than 700 residential lots.
At the time of acquisition Village Homes? backlog of homes sold, but not yet closed, was approximately $34 million. Its average home selling price for 2012 year-to-date was approximately $380,000.
?Village Homes is a leader in the fast growing Denver and Fort Collins markets,? Lyon said. ?This acquisition is consistent with our strategy of operating and gaining market share in the best homebuilding markets in the Western United States. We feel this transaction will benefit the combined companies from day one and for many years to come.?
Village Homes will immediately begin operating as a division of William Lyon Homes Inc. J. Eric Eckberg, President of Village Homes, will continue to oversee the operations of Village Homes and will report to Matthew R. Zaist, Executive Vice President of William Lyon Homes.
?The acquisition of Village Homes caps a year of growth and change at William Lyon Homes,? Zaist said. ?The company has seen an inflow of over $125 million in new equity and continued growth in operating margins and market share in each of our core markets. Our recent capital markets transaction completed in November resulted in the sale of $325 million of unsecured bonds which the company used to refinance our existing secured debt.?
Houlihan Lokey served as special advisors to the company?s executive management team and the board of directors on the transaction. Gibson, Dunn and Crutcher served as special counsel to the company on the transaction.
Have a story idea or real estate tip? Contact John Rebchook at JRCHOOK@gmail.com. InsideRealEstateNews.com is sponsored by Universal Lending, Land Title Guarantee and 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.
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Source: http://insiderealestatenews.com/2012/12/villages-homes-sold/
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