WCI Looks at Possible Sale: WSJ

WCI Communities, a Florida based builder of luxury high-rise housing, has hired Goldman Sachs Group to explore strategic alternatives, which could include the sale of the company, The Wall Street Journal reported Tuesday.

Several large investors, including Hotchkis & Wiley Capital Management LLC, have been building up holdings in the real estate company which has a market value of about $920 million, according to the paper.

WCI will use cash flow this year to sharply reduce its debt. Once that has been achieved Jerry Starkey, company CEO believes that WCI’s ability to “enhance shareholder value through a variety of strategic alternatives, including stock repurchases and potentially the sale of the company will be greatly improved," he told the Journal.

According to many analysts and investors, WCI's greatest asset is its portfolio of undeveloped land along the coast of Florida that it acquired before the latest price increases, said the Journal.