Public Company Engaged in Media Support Services, Home Building, and Land Development
Background: Retained by the Board of Directors of this multi-industry company to evaluate the real estate activities (including over 95,000 acres of land and about 20 business parks and retail centers) of the company as it transitioned from a land developer / home builder to just land development activities which would alleviate the substantial capital requirements of trying to do both activities simultaneously and the overhead / employee count of home building. This would simplify the company and looked like a better fit with its abilities and interests. After a review of the whole residential market, the client, who was only serving the entry level market, was advised to broaden its offerings - add different products and products in higher price ranges with commensurate amenities and community and project gateway statements, and to manage its lot design and home builder partner relationships accordingly. The company was also advised to expand its contractor relationships to better manage costs and to maintain control of income properties for long term investment. Additionally, the transition from home builder and land development activities to just land development activities required the development of home builder relationships which requires some patience and effort over several years to create a robust platform. Annual revenues of the company were in the $100 million range, assets at the $175 million level.
Scope: As consultant, worked independently and directed senior management and external consultants.