This development and construction company (TDC) is a $13mm niche home building firm located in Atlanta, GA. The company builds homes both speculatively and for custom clients, with an average price point of $1mm. The company has traditionally focused on providing houses at the top end of the local markets that it serves. To justify its position at the top price point of each market, TDC meticulously plans each home, focusing on livability, high-end finishes, and a “wow” factor. The result of this focus is a growing brand that is associated with quality and aesthetic beauty. The company’s slogan is “structural integrity, premium finishes.” The brand is, at this point, well established in certain neighborhoods of what is considered Atlanta “in-town” living. TDC is starting to gain more brand awareness as it expands into other Atlanta neighborhoods where demand for their price point and quality is strong.
While TDC has just 4 full-time employees (3 of which are considered executives), the company has developed strong relationships with over 100 professionals, vendors, and subcontractors, and leverages those relationships to build a better home in a shorter time frame than its local competitors.
CEO. Manages the company’s land acquisitions, budgets, cash flow, and establishes the strategic priorities for the company.
- Director of Construction. Is a project manager and also manages subcontractor and vendor relationships. Will oversee a new project manager beginning in January, and is currently implementing a new construction management software.
- COO. Manages municipality relationships, including TDC’s permitting, variance, and re-zoning efforts. She also works closely with the company’s third-party architects, land planners, and designers to ensure that TDC’s homes meet the market’s demands.
TDC believes that now is the time for it to grow its brand into new sub-markets. In 2015, the company is projected to close 14 homes, 11 of which are in one area of Metro Atlanta. It sees future growth occurring through two different avenues:
Scattered lots. The majority of TDC’s homes are now built on scattered lots throughout in-town Atlanta. TDC wants to take the scattered lot model to more quality neighborhoods whose demographics support its higher-end homes. TDC sees the “scattered lot” division operating separately from its other division, with a focus on continuing to develop relationships with the leading “in-town” real estate agents. The company also strives to be the company that individuals call when they have personal property to sell. TDC is adept at working with the various cities, counties, and neighbors to turn challenging lots into successful home builds.
Neighborhoods. In metro Atlanta, there are still numerous opportunities to build neighborhoods. TDC hopes to break into this type of development in well-located areas. While the focus will continue to be “in-town” neighborhoods with a walkability element, TDC realizes that the land acquisition efforts will be more easily achieved in the more suburban markets. While open to building in suburban Atlanta, the company will maintain a focus on those areas with highly desirable school districts, and, preferably, a walkability factor.
In order to continue its strong brand and revenue growth, TDC believes that it will need to invest heavily in several areas. Investment will need to come in three primary areas:
Land. The most obvious way to achieve revenue and brand growth is to have branded homes being built in many different areas of metro-Atlanta. This is also the most capital-intensive of the investment areas.
Human Capital. TDC has established a scalable business model, but will need capital to hire the people with the ability to take the company to the next level. Immediate needs include an estimator, a controller, and more project managers.
Marketing. To this point, TDC has done almost no advertising other than the organic advertising that comes from the homes it builds and the customers it serves.
TDC believes that it has the core business model, brand basics, relationships, and leadership in place to take it to the next level. It also believes that a partner with a stronger balance sheet and perhaps some experience with larger home building firms would greatly enhance the growth process, and is thus seeking out that partner. TDC is flexible to various ownership structures if it can find a synergistic relationship with another firm or individual.