Latest FrontDoor Communities News
Dec 28, 2017
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor to Stanley Martin. Venable LLP served as legal advisor to FrontDoor Communities. Stanley Martin Communities announced today that it has entered into an agreement to acquire substantially all of the homebuilding assets of FrontDoor Communities in Atlanta, Georgia and Charleston, South Carolina. The transaction is expected to close in January 2018. Atlanta-based FrontDoor Communities has been building in Atlanta and Charleston for over 5 years. For the twelve months ending September 30, 2017, FrontDoor had 157 home closings, and as of September 30, 2017, controls over 1,300 lots. Terry Russell, FrontDoor’s CEO, and Mike Langella, FrontDoor’s President and Chief Operating Officer, will join Stanley Martin and continue to manage the Atlanta and Charleston operations. Stanley Martin was founded in 1966 and is in the homebuilding, mortgage, and title businesses in the metro Washington, D.C., Richmond, Charlottesville, and Raleigh markets. In 2017, Stanley Martin has sold over 1,000 homes, and through its First Heritage Mortgage subsidiary, originated over $1 billion of home mortgages. The FrontDoor Communities transaction facilitates Stanley Martin’s expansion strategy into growing markets in the Southeast. In February 2017, Stanley Martin completed a transaction whereby 82% of its member interests were acquired by Daiwa House USA, a subsidiary of Daiwa House Group. Daiwa House is the leading housing and construction company in Japan. Daiwa House has been expanding its international operations in China, Southeast Asia, and Australia, and Daiwa House’s long range plan places a strong emphasis on expansion in the United States housing market. Stanley Martin’s acquisition of the assets and operations of FrontDoor Communities is a significant milestone in achieving that plan. The Paul, Weiss team includes corporate partner Jeffrey Marell (Picture) and counsel Pearl Yuan-Garg; intellectual property partner Claudine Meredith-Goujon; real estate partner Peter Fisch; tax partner David Sicular; employee benefits partner Lawrence Witdorchic and counsel Jason Ertel; and environmental counsel William O’Brien.