Trumark Homes Acquires Wathen Castanos Homes to Build on 'Aggressive' Western Expansion
October 13, 2023/ in MT Newswires Exclusive / by Carla Mozée
(MT Newswires) -- Trumark Homes has acquired Wathen Castanos Homes, expanding the developer's reach in California and moving it closer to surpassing $1 billion in revenue next year.
The deal makes Trumark's homebuilding portfolio contiguous from northern California to southern California and continues an "aggressive" expansion in the western US, Trumark said on Thursday. The company is majority-owned by a unit of Japanese homebuilder Daiwa House Industry.
"We are seeing continued demand across our portfolio, particularly throughout California due to low inventory and high demand," Trumark Co-Founders Michael Maples and Gregg Nelson told MT Newswires in an email Friday. "The single-family market is experiencing sustained strength across the state, so although rates can have an effect, the limited supply is not enough to reduce the demand."
Trumark said acquiring Wathen Castanos Homes will allow it to exceed $1 billion in revenue in 2024. Maples and Nelson told MT Newswires that this year, Trumark is on track to show a 53% increase in total revenue over 2022, and projections for combined operations in 2024 would yield an additional 70% increase in revenues over 2023. Trumark cited its status as a private company in its decision not to disclose the acquisition price for Wathen Castanos Homes.
"Our vision is to grow strategically and substantially with the goal of becoming one of the top homebuilders in the West," Maples and Nelson said. Trumark pushed beyond California for the first time in 2021, setting up a division in Colorado in a bid to capitalize on what it called the state's "robust" housing market.
"[With] the support of Daiwa House, we fully anticipate additional growth in the Western region of the US," the co-founders said. Trumark sold a 60% equity stake in its business in 2020 to Daiwa House USA, a subsidiary of Japan's largest homebuilder.
Maples and Gregg said they will continue working on growth opportunities with the counsel of JTW Advisors, which served as its exclusive financial advisor on the Wathen Castanos Homes purchase. Wathen Castanos Homes traces its California roots back to the early 1920s, and the company since 2014 has been led by Josh Peterson, its president and part owner.
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