Yet another national builder has entered the Atlanta market through the acquisition of an established private local home builder. Toll Brothers, Inc., (NYSE:TOL) , the nation’s leading builder of luxury homes, has expanded into the Atlanta market through the acquisition of Sharp Residential. This was a cash $$$ purchase, that at the time we published was not yet disclosed.
Sharp Residential was founded in 1991 by Tom Sharp and has welcomed more than 5,000 homeowners home in the Atlanta market since inception. The Company focuses primarily on the area’s northern suburbs with homes ranging from first-time to luxury at price points from the $300,000s to the $900,000s. Sharp is known for building in communities such as West Park, Bentwater, Brandon Hall, Seven Hills, Harmony on the Lake, Lakestone and Liberty Park.
At acquisition, Sharp had approximately $65 million in backlog consisting of 125 homes with an average price of $520,000. Including the backlog, Toll Brothers acquired approximately 900 lots owned and controlled in the Atlanta metro area. The acquisition will increase Toll Brothers’ selling community count by approximately 10 communities as of the closing date.
Douglas C. Yearley, Jr., Toll Brothers’ chairman and chief executive officer, stated: “Atlanta was the largest U.S. housing market where we did not operate. We believe joining with Sharp Residential is the ideal way for us to enter and grow quickly in this robust market. As one of Atlanta’s premier homebuilders, the diversity of their product lines will enable us to offer a broad range of communities to the upscale market. We are confident that their experienced management team, great land positions, reputation for fine quality homes, and long-established local relationships will be a formula for our success in the Atlanta market. Given the size, depth and demographics of this market, we are very excited with the opportunities ahead.”
Tom Sharp, founder and president of Sharp Residential, stated: “Based on our nearly thirty years building homes and serving customers in the Atlanta market, we see significant opportunity for continued growth as we join the Toll Brothers family. We are confident that our knowledge of and reputation in the market, combined with Toll Brothers’ great brand and resources, will enable us, together, to grow and succeed in the Atlanta market. We look forward to an exciting future as a member of the Toll Brothers team.”
Zelman Partners LLC acted as exclusive financial advisor to Sharp Residential.
Toll Brothers, Inc., A FORTUNE 500 Company, is the nation’s leading builder of luxury homes. The Company began business over fifty years ago in 1967 and became a public company in 1986. Its common stock is listed on the New York Stock Exchange under the symbol “TOL.” The Company serves move-up, empty-nester, active-adult, and second-home buyers, as well as urban and suburban renters. It operates in 22 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Texas, Utah, Virginia, and Washington, as well as in the District of Columbia.