Despite Slowing Demand, Jurney Homes Pursues Growth Strategy
Wade Jurney Homes Inc. plans to build more than 600 homes in seven Greensboro projects during the next few years, including three subdivisions it will take over from other builders.
This is a major shift in strategy for the company, which closed on only 84 homes in 2005.
Despite slowing new-home sales around the Triad for much of the past year, and flat sales during the third quarter, company President Wade Jurney Jr. said the builder was on track to close on 130 homes in 2006 and a projected 200 homes in 2007.
"It might look like we're being a little optimistic in a market that's expected to be flat. But we've got all these new communities coming online," Jurney said.
As part of its growth plan, Wade Jurney Homes is finishing subdivisions originally started by John Kavanagh Co., K. Hovnanian Homes of N.C. and Ryland Homes. All three of the projects are priced in the low- to mid-$100,000s.
Calls to John Kavanagh Co. and K. Hovnanian were not returned, but Jurney said he didn't think the companies were pleased with the pace at which homes in the developments were selling. As a smaller builder, Jurney said he doesn't have the same expectation for monthly home sales as many of his larger competitors.
Green Crest, a 60-home development, is the project Wade Jurney Homes is assuming from John Kavanagh Co. Kavanagh sold about 15 homes in the development before selling the remainder of the lots. Jurney took over the lots in June and has sold 10 homes in the subdivision since then. The company is also assuming the remaining 54 lots of Riverdale Ridge, a 101-home subdivision begun by K. Hovnanian.
And Wade Jurney Homes will build the final 81 homes in Manchester, a 170-home subdivision started by Ryland Homes.
Joe Nottoli, Triad division manager for Ryland Homes, said his company was offered the final 81 lots in Manchester by Builders Land, which is developing the project. Because lot prices were higher in that phase of the project, Nottoli said Ryland Homes decided to pass on the option.
In addition to taking over those projects, Jurney expects to begin four of his own within the next six months.
The largest project of those is Chapel Ridge, a 250-home subdivision off Lees Chapel Road. Homes in the development will start around $110,000. Jurney expects to sell between 60 and 80 homes in the subdivision each year for the next four years.
Even with slowing new-home sales, Jurney's expectations for the Chapel Ridge project are not unreasonable, especially given the price range, said Bernard Helm, president of Market Opportunity Research Enterprises, a Rocky Mount firm that tracks the local housing market.
Wade Jurney Homes is also planning two smaller subdivisions, Holden Crossing and Edison Village, and its first town home project, near the intersection of Pisgah Church Road and Elm Street, also in Greensboro.
Wade Jurney Homes Inc.
President: Wade Jurney Jr.
Address: 3300 Battleground Ave., Greensboro 27410
Phone: (336) 282-3606
Web site: http://www.wadejurneyhomes.com
This article was originally published in The Business Journal of the Greater Triad Area and The Business Journal Serving the Greater Triad Area by Michelle Cater Rash.
Reach Michelle Cater Rash at (336) 370-2918 or .(JavaScript must be enabled to view this email address).
Wade Jurney Homes
3300 Battleground Avenue
Suite 230
Greensboro, NC 27410
Phone:
336-282-3606
Fax:
336-282-6364