Stanley Martin Communities has entered into an agreement to acquire substantially all of the home building assets of FrontDoor Communities in Atlanta and Charleston, S.C., in a move that’s expected to close in January.
For the 12 months ending Sept. 30, 2017, Atlanta-based FrontDoor had 157 home closings, and as of the same date controlled more than 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. FrontDoor had been building in Atlanta and Charleston for more than 5 years.
“Terry and Mike bring a wealth of experience to our organization,” said Steven Alloy, president of Stanley Martin, in a statement. “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.”
Stanley Martin was founded in 1966 and is in the home building, mortgage, and title businesses in the metro Washington, D.C., Richmond and Charlottesville, Va. and Raleigh, N.C. 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 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 is a significant milestone in achieving that plan, the company said.
“I have known the people at Stanley Martin for many years, and there is a strong cultural fit between the two companies,” Russell said in a statement. “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.”
