Top 50 builders of 2006
Chicago Sun-Times
March 23, 2007

by Bill Cunniff

The 10 largest home builders in the Sun-Times survey sold more than 12,500 new homes last year. Collectively, the 10 firms accumulated $3.5 billion in revenue in 2006. Here are the top 10 builders in 2006:

1. Cambridge Homes
$597.5 million., 1,995 closings.

For the third year in a row (and the fifth time in six years), Cambridge Homes is the biggest home builder in the area.

"We are very pleased with this performance," said Douglas R. Brown, president of Cambridge Homes. "We had a good balance of closings in keeping with our business plan that called for a 60/40 ratio between singlefamily and multifamily closings."

Last year, the company opened a new design center in Elgin. The new 8,000-square-foot facility is double the size of the company's original design center in Libertyville, which it replaced. The company also has a design center in the Plainfield/Romeoville area.

"We relocated our original Libertyville design center to Elgin, not only because we wanted an improved facility, including more displays and interior finish items, but to provide a more central location for our buyers to choose their interior finish items," said Brown.

"This new facility showcases about three times more product," he said. For example, the flooring section has over 1,000 pieces of carpet, 300 pieces of ceramic tile and many wood, vinyl and decorative surfaces.

The builder recently announced an improvement in guaranteed delivery program. New-home deliveries are now guaranteed to a specific day with initial target delivery dates typically provided soon after purchase agreements are signed. Under the previous program, deliveries were guaranteed to a week from the time the rough carpentry/framing process began.

According to industry surveys, new-home buyers report that it's quite important to know as far in advance as possible when they will be able to close on their new homes. The industry average notification time ranges from 30 to 45 days in advance of closing.

"If a closing occurs after the stated date, we will provide a $500 check soon after the customer moves in," said Brown.

Cambridge Homes has 29 sales centers throughout the Chicago area, including a few developments for active adults 55 and older, such as the new Carillon Club in Naperville.

2. Enterprise Cos.
$461.7 million., 1,215 closings.

Enterprise's latest development is Walton on the Park at One West Walton Street in the Gold Coast. Prices begin in the $400,000s. Condos have 1 to 3 bedrooms. Sizes range from 920 to 3,400 square feet. Walton on the Park will be a joint venture of the Enterprise Companies and Mesirow Financial Real Estate.

Enterprise's developments include Museum Park, River Village Pointe and University Commons.

3. Lennar Homes
$458.4 million., 1,530 closings

Last spring, Miami-based Lennar Corp., listed on the New York Stock Exchange, announced that the Chicago area home building company Concord Homes would operate under the Lennar name. Lennar acquired Concord Homes in 2002, but marketing under the Concord moniker continued until last spring. Lennar is one of the country's largest home builders.

Lennar has about 30 developments in the Chicago area. At Greywall Club in Joliet, a mix of single-family homes, town houses and duplexes are planned. The development features a 3,100-square-foot clubhouse and the on-site Aux Sable Middle School. The school celebrated its grand opening in 2006.

In May, Lennar started sales for 85 townhomes at Orland Crossing, the first residential component of Orland Park's downtown redevelopment plan called Main Street Triangle. In just six months, sales surpassed the 50 percent mark.

Construction is well under way at Library Tower, a 17-story condo building in Printers Row, across from the Harold Washington Library.

Lennar will start sales in May at Arlington Reserve, a townhome development in Arlington Heights.

4. Magellan Development Group
$392.6 million, 661 closings

Lakeshore East, at the Chicago River and Lake Michigan, is a venture of Magellan Development Group LLC, a recently formed corporate partnership culminating a long-term collaboration between Magellan Development Group and NNP Residential & Development.

Condominium buildings at Lakeshore East include Aqua (pre-construction sales), the Parkhomes (preconstruction sales), the Chandler (under construction), the Regatta (under construction), 340 on the Park (under construction) and the Lancaster.

Prior to the merger, Magellan's portfolio spans from River North, the Gold Coast and the Near West Side. Magellan's condominium developments include the Park Alexandria, the Caravel, Admiral's Pointe, the Farallon, 630 North State Street, 21 West Chestnut Place and the Park Newberry Residences.

5. Pulte Homes
$379.2* million, 1,200* closings

Pulte Homes has about 10 developments in the Chicago area. In the builder's south suburban division, singlefamily homes as well as town houses are available at Cedar Ridge in Lockport, Autumn Creek in Yorkville and Prescott Mill in Oswego. At Canterbury Woods in Plainfield, single-family homes begin at $301,990,

The north division of Pulte Homes recently announced a home staging program to help home buyers sell their existing home faster and at a higher price.

Pulte's preferred staging company is Order in the House Staging Services Inc. "One client's house was on the market for nine months before we performed a staging consultation. After our recommendations, the home was involved in a bidding war three weeks later -- and sold for more than the asking price," said Lorrie Witt, coowner.

Incidentally, Pulte is the parent company for Del Webb Homes, a builder of developments for active-adults 55 and older. The home staging service is available for select Del Webb sites too. Del Webb is 14th in the 2006 Sun-Times survey.

6. Town & Country Homes
$356.0 million, 1,061 closings

Town and Country Home has nine developments in the Chicago area, including Elgin, Wauconda, Oswego, Huntley, Carol Stream, Volo and McHenry.

In 2006, the builder started a program offering home buyers the opportunity to invest up to $11,000 (representing a year's college tuition at public university) in a college savings fund through College Illinois. Buyers who do not wish to invest in the fund can use the $11,000 toward options in their new home.

"We've had many newlyweds planning a family in the years to come who have also decided to invest. They realize the earlier they invest, the greater the nest egg when their child goes to college," said Kathy Hoshor, vice president of marketing for Town & Country Homes.

7. Ryland Homes
$344.3 million, 1,019 closings

National builder Ryland Homes is celebrating its 40th anniversary. The firm is offering customers 40 percent off mortgages for one year and 40 percent off options.

Ryland has been in the Chicago area for 13 years, building nearly 10,000 homes throughout the suburbs. Currently, the firm has about 15 developments.

Ryland Homes, since its founding in Columbia, Md., in 1967, has helped more than 255,000 families achieve homeownership. About 215,000 of them finance their homes through Ryland Mortgage Co.

8. Centex Homes
$249.9 million, 1,050 closings

Centex Homes' developments include sites in Joliet, Elgin, Plainfield, Manhattan, Woodstock, Yorkville and Bradley (near Bourbonnais).

"At our home buying [seminars], we show attendees how they can buy up to 20 percent more home than they think they may be able to afford, how to purchase a new Centex home with little or no money down and how to obtain a down payment in 15 different ways," said Christina Alvarez, Centex business development consultant.

Another program allows renters to earn back a percentage of their base rent each month, which can be applied toward the purchase of a new Centex home.

9. Neumann Homes
$231.2 million, 833 closings.

Neumann Homes' latest transit-oriented development is NeuDearborn Station in Naperville, with access to the Route 59 Metra station. The development will have 60 townhomes and 40 condominiums. Sales, which began in December 2005, are approaching the 75 percent mark.

"With most prices below Naperville's median home price of $329,000, NeuDearborn Station represents an attainable entry point into one of Chicago's most desirable suburbs," said Jean Neumann, chief marketing officer of Neumann Homes.

This spring, Neumann Homes is set to unveil its newest development of single-family homes, the Conservancy in Gilberts. The builder plans 985 houses, priced from the $300,000s. Plans call for an on-site elementary school too.

10. Lakewood Homes
$211.1 million, 837 closings

For five out of the last six years, new-home buyers have recognized Lakewood Homes as the highest-ranking home builder in customer satisfaction in the Chicago market. Lakewood Homes performed particularly well in home readiness, builder's sales staff, price/value and builder's design center, according to the J.D. Power and Associates 2006 New-Home Builder Customer Satisfaction Study.

Lakewood Homes currently is building developments in Plano, Joliet, Hampshire, St. Charles and Carol Stream.

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