Information, opinions and tips about Southwest Florida real estate

Fort Myers Real Estate

Fort Myers has shed its sleepy image to emerge as one of Southwest Florida’s “best places to live” [more]

Estero Real Estate

Strategically positioned between Fort Myers and Naples, Estero brings an exciting new dimension to Southwest Florida [more]

Naples Real Estate

Naples is known world-wide for its wonderful beaches, upscale neighborhoods, fine dining [more ]

First Homes scooped up

By Mark Washburn On August 10, 2005 · · In Southwest Florida

Acquired by Hovnanian Enterprises

Local powerhouse builder, First Homes Builders, was acquired by Hovnanian Enterprises,Inc. (NYSE – HOV) the nation’s eighth largest builder. The acquisition was all cash and the purchase price was undisclosed. Hovnanian is publicly traded and currently has backlogged orders for over 11,000 homes.

Hovnanian expects the acquisition to add about 5 cents to earnings in fiscal 2006. Fred Hermann, president, and Bruce Robb, chief operating officer of First Home Builders, will remain with Hovnanian following the acquisition.

It is tough to predict the effect that this transaction will have on the local home building market. You do have to wonder if a highly scrutinized public company will remain interested in building low-margin entry-level housing. Over time I expect to see the Hovnanian product to move up market, particularly in Cape Coral where almost all lots are pushing six figures.

Hovnanian Buys Florida Homebuilder [Forbes]