Comstock Homebuilding Companies, Inc. Announces Purchase of Parker Chandler Homes
January 19 2006 - 4:00PM
PR Newswire (US)
Acquisition Continues Company's Geographic Expansion Throughout
Southeast RESTON, Va., Jan. 19 /PRNewswire-FirstCall/ -- Comstock
Homebuilding Companies, Inc. (NASDAQ:CHCI) ("Comstock" or the
"Company") today announced the acquisition of Parker Chandler
Homes, Inc. ("Parker Chandler"), a rapidly growing private
homebuilder in the Atlanta, Georgia metropolitan area for an
undisclosed price. The acquisition provides Comstock with
additional geographic diversification and a solid position in one
of the strongest homebuilding markets in the Southeast, adding
approximately 1,600 lots (mostly single family detached lots) to
the Company's pipeline of land inventory. Comstock will maintain
the Parker Chandler brand in the markets where Parker Chandler
operates. The founding principals of Parker Chandler Homes, James
Parker and Andrew Chandler will join Comstock's management team.
James Parker has been named Regional President of the Mid-South
Division and Andrew Chandler was named Regional Vice President of
Land Acquisition and Development of the Mid-South Division.
Headquartered in Forsyth, Georgia, Parker Chandler currently
operates in North Atlanta and has growing operations in Charlotte,
N.C. and Myrtle Beach, S.C. Parker Chandler builds mostly single
family homes focused on the $200,000 to $500,000 price range. The
Parker Chandler acquisition is projected to generate approximately
$75 million in total revenue for the Company in 2006. Comstock
reported that there was no common stock issued in connection with
the acquisition and it does not expect to record any goodwill in
connection with the transaction. Based on post-closing purchase
accounting adjustments in the carrying cost of the acquired assets
to fair market value, the acquisition is expected to be profitable
in 2006 and is expected to contribute positively to the Company's
published estimates for 2006. "We are extremely excited about this
acquisition and we are thrilled to have James Parker, Andrew
Chandler and their team joining the Comstock team," said
Christopher Clemente, Chairman and CEO. "Parker Chandler Homes'
focus on middle market products in strong homebuilding markets is
well aligned with Comstock's strategy vision for growth. James and
Andrew have more than 30 years combined experience building quality
homes in the Atlanta marketplace. We believe Atlanta is a good
market with strong fundamentals to support continued growth, and we
are confident that Parker Chandler has a land presence in Atlanta
that is well aligned with market demand. Comstock will continue to
expand operations in the strongest markets in the Mid-Atlantic,
Mid-South and Southeast, and I hope to be in a position to announce
additional strategic acquisitions during the remainder of this
year. This diversification strategy will help balance the effects
on our business from changing market conditions in the Washington,
D.C. market." "We are excited to become a Comstock Homebuilding
Company," said James Parker, the President of Parker Chandler
Homes. "The financial strength, diverse range of product
capabilities and entrepreneurial spirit of the Comstock
organization will help Parker Chandler Homes execute on our vision
of becoming a leading urban and suburban homebuilder in the Atlanta
market and in other strong markets in the southeast." About
Comstock Homebuilding Companies, Inc. Comstock is a production
homebuilder and real estate developer that develops, builds, and
markets single-family homes, townhouses, mid-rise condominiums and
high-rise condominiums. The Company currently builds in the
Southeast with concentrations in the Washington, D.C., North
Carolina, South Carolina and Atlanta, Georgia markets. The Company
targets a diverse range of buyers, including first-time, early
move-up, secondary move-up, empty nester move-down and active adult
home buyers. For more information on Comstock Homebuilding
Companies, Inc., please visit http://www.comstockhomebuilding.com/.
Cautionary Statement Regarding Forward-Looking Statements This
release contains "forward-looking" statements that are made
pursuant to the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995. Statements that are predictive in
nature, that depend upon or refer to future events or conditions,
or that include words such as "may," "will," "expects," "projects,"
"anticipates," "estimates," "believes," "intends," "plans,"
"should," "seeks," and similar expressions, including statements
related to Comstock's expected future financial results and
anticipated growth in the Washington, D.C. housing market, are
forward-looking statements. Forward-looking statements involve
known and unknown risks and uncertainties that may cause actual
future results to differ materially from those projected or
contemplated in the forward-looking statements. These risks and
uncertainties include, but are not limited to, economic, market and
competitive conditions affecting Comstock and its operations and
products, risks and uncertainties relating to the market for real
estate generally and in the areas where Comstock has projects, the
availability and price of land suitable for development, materials
prices, labor costs, interest rates, Comstock's ability to service
its significant debt obligations, fluctuations in operating
results, anticipated growth strategies, continuing relationships
with affiliates, environmental factors, government regulations, the
impact of adverse weather conditions or natural disasters and acts
of war or terrorism. Additional information concerning these and
other important risks and uncertainties can be found under the
heading "Risk Factors" in the prospectus from Comstock's initial
public offering, as filed with the Securities and Exchange
Commission on December 15, 2004. Comstock specifically disclaims
any obligation to update or revise any forward-looking statements,
whether as a result of new information, future developments or
otherwise. First Call Analyst: FCMN Contact: DATASOURCE: Comstock
Homebuilding Companies, Inc. CONTACT: Bruce Labovitz, Chief
Financial Officer, +1-703-883-1700 ext. 131, , or Reid Kasprowicz,
Investors Relations, +1-703-883-1700 ext 106, , both of Comstock
Homebuilding Companies, Inc. Web site:
http://www.comstockhomebuilding.com/
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