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Tag: Coleman Homes

Coleman Homes looks to increase homebuilding with Toll Brothers backing

An example of The Alexander, a home in the Coleman Homes’ Countryside Collection. Photo courtesy of Coleman Homes.
An example of The Alexander, a home in the Coleman Homes’ Countryside Collection. Photo courtesy of Coleman Homes.

Meridian-based Coleman Homes expects to double its 2015 luxury home production numbers in the Treasure Valley in the coming year after its purchase by national home building powerhouse Toll Brothers.

“We hope to grow to 400 homes next year or more,” Coleman Division President Thomas Coleman Jr. said.

Coleman expects to finish 2016 with about 300 new homes. The company built 203 homes in 2015 and 186, 194 and 143 homes in the prior three years. In all, Coleman Homes has built about 1,100 homes since arriving in Boise in 2004, according to company statistics.

Coleman Homes, retaining its name, will remain “virtually identical in terms of anyone interacting with us,” Coleman said. “We are still building the same housing. We just have a lot more resources at our disposal.”

Thomas Coleman Sr. and Thomas Coleman Jr.
Thomas Coleman Sr. and Thomas Coleman Jr.

Coleman now has the backing of Toll Brothers, which ranks No. 628 in the Fortune 500 with annual revenue of $4.1 billion, making it the No. 1 homebuilding company in the country.

The Coleman family has experience with Toll Brothers. Coleman’s father, Thomas Coleman Sr., sold the family’s Coleman Homes in Las Vegas to Toll Brothers in 1997.

Coleman Sr. started Coleman Homes in Bakersfield, Calif., in 1972, which remained the main operation until he sold it in 2003. Coleman Sr. expanded to Las Vegas in 1980.

Meanwhile, Coleman Jr. had not been to Bakersfield since high school and moved to Boise in 2004, first as a land developer. He re-established Coleman Homes in 2007.

“My dad was living in Santa Barbara,” Coleman Jr. said. “We looked in a 1,500-mile radius at communities with opportunity. One was here. Mostly, it was economic. Population growth and employment growth is quite steady. Personally, it’s a nice place to live.”

Toll Brothers ownership will allow Coleman Homes to move ahead with four new housing communities for which the company had been cash-constrained until now.

Coleman Homes in Meridian was Coleman Jr.’s company with Coleman Sr. involved as an investor.

“Around the end of 2015, dad and I talked about trying to limit his investment in the business,” Coleman Jr. said. “This coincided with an option to get more equity into the business (with Toll Brothers).”

Toll Brothers acquires Meridian’s Coleman Homes

A Coleman home on Astonte Drive in Meridian. Photo courtesy of Toll Brothers.
A Coleman home on Astonte Drive in Meridian. Photo courtesy of Toll Brothers.

The No. 1 ranked homebuilder in the Fortune 500 has acquired Meridian luxury homebuilder Coleman Homes in a cash purchase for an undisclosed amount, according to a news release.

Toll Brothers Inc. announced the acquisition Nov. 7.

Toll Brothers acquired “substantially all of the assets and operations” of Coleman Real Estate Holdings LLC, commonly known as Coleman Homes.

Coleman Homes is the developer of Creekside at the Preserve in Eagle, West Highlands in Middleton, The Ridge at West Highlands in Middleton, Bellano Creek in Meridian, The Oaks in Meridian, Fall Creek in Meridian, Carriage Hill North in Nampa, and Timbermist in Kuna, according to the Coleman Homes websites.

Toll Brothers reports Coleman’s $40.8 million backlog includes 135 homes at an average price of $302,000. Coleman builds homes priced from $175,000 to $500,000.

Toll Brothers in 1997 had bought the Coleman family’s Las Vegas operations. The father-and-son team of Tom and Thomas Coleman Jr. arrived in the Boise market in 2004 and built more than 1,000 homes in the Treasure Valley.

The Coleman Homes website retains the Coleman name addended with A Toll Brothers Company.

“Based upon the shared history of our two companies, we are confident that Toll Brothers’ great brand and resources will enable us, together, to expand upon the success that Coleman Homes has already achieved,” said Thomas Coleman Jr., president of Coleman Homes, in the news release.

Toll Brothers builds luxury homes in 19 other states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Pennsylvania, Texas, Virginia, and Washington, and Washington, D.C.

Fortune magazine ranks Toll Brothers at No. 628 in the Fortune 500 with annual revenue of $4.1 billion, ranking it the No. 1 homebuilding company in the country. Toll Brothers is based in Horsham, Penn., a Philadelphia suburb.

“We are excited to enter the Boise market with the acquisition of Coleman Homes,” Toll Brothers CEO  Douglas C. Yearley Jr. said in the release. “Coleman is one of the premier homebuilders in the market with a reputation for delivering exceptional quality and value to its homeowners.”

Yearley equates Boise with Reno, where Toll Brothers also builds homes. Younger homebuyers are also in Toll Brothers’ sights.

“We see Boise as a growing yet underserved market, much like Reno, where we have had great success with the Toll Brothers brand, product and customer experience,” Yearley said. “With 22 percent of our homes already sold to households with at least one buyer 35 years or younger, we see this as an important strategic step in broadening our outreach to affluent millennials, as well as many other potential customers.”