National Builder KB Home Is Battling With Local Firms for Projects Large and Small
The last great expanse of developable property near Gaithersburg is the Crown Farm, with its rolling hills and freshly cut grass, nestled near Interstate 270 and the heart of Montgomery County’s biotech community. It is such an irresistible jewel for home builders that bidding for the property at times resembled begging.
So when Los Angeles-based KB Home swooped in on the 180-acre property this summer as lead builder in a $137 million, 2,000-house deal, the region’s home builders did not need to be told the ground underneath them had shifted. The nation’s fifth-largest builder, with $7 billion in revenue last year, jolted the country’s fastest-growing home-building market, setting the stage for even sharper battles between regional and national builders for a limited amount of land.
“We are all absolutely fierce competitors,” said G. Cory DeSpain, who oversees home building in Virginia and Maryland for Pennsylvania-based Toll Brothers Inc., which deals mainly in luxury homes. “They will find their market niche here. They have deep pockets. They are a big company. They’re probably going to take some market share from people.”
It’s nice to see the developers suffering — even a little — heartburn for a change…
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