NVR's Ryan Homes division enters Illinois residential market, plans to build, sell around 20 homes at its 884-acre planned community in Plainfield
September 16, 2011
– NVR Inc. has quietly entered the Illinois housing market through its Ryan Homes division, as the third-largest homebuilder in the U.S. is currently constructing models at Grande Park in Plainfield, about 35 miles southwest of Chicago, and plans to build and sell around 20 homes at the 884-acre master-planned community, the Chicago Tribune reported Sept. 16.
Traditionally viewed as a Mid-Atlantic builder, NVR's market share in some areas of the East Coast is 20%, but it has tried to spread its footprint in recent years, expanding into Florida and Indianapolis in 2009. Indianapolis had been the western most part of its market presence until the company began building in Plainfield.
NVR also operates under the names NV Homes, Rymarc Homes and Fox Ridge Homes, and doesn’t announce its arrival in a market or talk about its future plans, according to the Chicago Tribune, which also noted that NVR has one of the strongest balance sheets in the industry. The company’s strong financial position stems from taking options on land rather than buying land outright.
According to Professional Builder, NVR had residential revenue of US$2.9 billion and 10,030 closing across the U.S. last year, the Chicago Tribune noted.
NVR nearly entered the Chicago market more than a year ago through the proposed acquisition of Orleans Homebuilders Inc., but Orleans terminated the deal and opted to reorganize.
Stifel Nicolaus analyst Michael Widner told the newspaper NVR's arrival in the Chicago-area market was not likely to pose an immediate threat to local builders, because organic growth had proven to be "pretty difficult".
The primary source of this article is the Chicago Tribune, Chicago, Illinois, on Sept. 16, 2011.