RESTON, Va., Dec. 21, 2017 /PRNewswire/ -- Stanley Martin Communities announced today that it has entered into an agreement to acquire substantially all of the homebuilding assets of FrontDoor Communities in Atlanta, Georgia and Charleston, South Carolina. The transaction is expected to close in January 2018.
Atlanta-based FrontDoor Communities has been building in Atlanta and Charleston for over 5 years. For the twelve months ending September 30, 2017, FrontDoor had 157 home closings, and as of September 30, 2017, controls over 1,300 lots. Terry Russell, FrontDoor's CEO, and Mike Langella, FrontDoor's President and Chief Operating Officer, will join Stanley Martin and continue to manage the Atlanta and Charleston operations.
Stanley Martin was founded in 1966 and is in the homebuilding, mortgage, and title businesses in the metro Washington, D.C., Richmond, Charlottesville, and Raleigh markets. In 2017, Stanley Martin has sold over 1,000 homes, and through its First Heritage Mortgage subsidiary, originated over $1 billion of home mortgages. The FrontDoor Communities transaction facilitates Stanley Martin's expansion strategy into growing markets in the Southeast.
In February 2017, Stanley Martin completed a transaction whereby 82% of its member interests were acquired by Daiwa House USA, a subsidiary of Daiwa House Group. Daiwa House is the leading housing and construction company in Japan. Daiwa House has been expanding its international operations in China, Southeast Asia, and Australia, and Daiwa House's long range plan places a strong emphasis on expansion in the United States housing market. Stanley Martin's acquisition of the assets and operations of FrontDoor Communities is a significant milestone in achieving that plan.
"Terry and Mike bring a wealth of experience to our organization. The Atlanta market is one the strongest housing markets in the U.S. and will be an important aspect of our anticipated growth. Terry, Mike and their team have done an outstanding job of growing their operations in both the Atlanta and Charleston markets, and we look forward to their ongoing contributions to our business," said Steven Alloy, President of Stanley Martin.
Terry Russell, one of the founders of FrontDoor, has been a long time leader in the homebuilding industry in the Southeast. "I have known the people at Stanley Martin for many years, and there is a strong cultural fit between the two companies. As we look forward, our joining Stanley Martin will enable our continued growth and expansion as well as support our commitment to quality and customer satisfaction."
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor to Stanley Martin. Venable LLP served as legal advisor to FrontDoor Communities.
About Stanley Martin Homes
Headquartered in Reston, Virginia, Stanley Martin Homes builds new condos, townhomes and single-family homes in Maryland, Northern Virginia, Charlottesville, Richmond and Raleigh. Founded in 1966, it has been building homes and neighborhoods with quality and craftsmanship for more than 50 years. For more information, visit www.StanleyMartin.com.
Guildmaster Award Winner: 2009, 2010, 2011, 2012, 2013, 2016, 2017
For more information, contact:
Randy Kotler, CFO
SOURCE Stanley Martin Homes