One verification that the housing market in the Southeast United States is expected to remain strong for the future is the news that PulteGroup is acquiring “certain homebuilding assets” of Atlanta-based John Wieland Homes and Neighborhoods. The news of the purchase of the massive portfolio of land and houses is from an announcement made by PulteGroup, Inc.
Sold to a joint venture formed by the Wieland family and the Greenwich, Connecticut-based real estate investment firm Wheelock Street Capital in 2012, this purchase is from the Wheelock affiliates and the Wieland family. The closing should happen by the end of March 2016 at a cost of as much as 450 million dollars.
This follows the last few years trend where public builders acquire small to mid-sized private builders in an industry consolidation. Affected are about 7,400 controlled lots and 280 homes in backlog lots in Atlanta, Charleston, South Carolina, Charlotte and Raleigh in North Carolina, and Nashville, Tennessee. Property values in the Southeast have risen again, close to or beyond where they were previously.
The goal behind the venture is increasing Pulte’s market share and operating leverage in these key cities and growing Pulte’s luxury home market presence. John Wieland Homes is both a well-known name in the Southeast and a well-regarded company. Generating $280 million in revenue from September 2014 through September 2015, the company delivered about 565 homes with an average selling price of $495,000.
2015 was the 45th anniversary of John Wieland Homes and Neighborhoods which stresses efficiency, technology and comfort and backed by the Wieland 5 Year-20 Year Warranty. The company ranks in with the one hundred largest homebuilders in the United States. The regional director of Metrostudy Atlanta and Nashville, Eugene James, marvels at Wieland’s feat of the number of homes delivered yearly at above-average selling prices. “Because of their price point, you don’t expect to sell that many homes in that price range, yet John Wieland has managed to do so, and that’s directly because of their reputation.”
Gregory Huff, former PulteGroup executive who became the chief executive officer of John Wieland Homes in 2016, said, “Having worked for Pulte earlier in my career, I have a strong appreciation for the proud history, reputation for quality and dedicated professionals in each organization. We look forward to joining a national homebuilder where we share the same beliefs with regard to delivering superior product quality and outstanding service to our customers.”