Date: Fri 08-Sep-1995

Publication: Bee

Author: AMYD

Quick Words:

housing-Toll-real-estate

Full Text:

Large-Scale Residential Developer Starts Work In Newtown

B Y A MY D'O RIO

One of the largest builders in the country has jumped into the Newtown housing

market and has purchased two developments since June.

Toll Brothers, Inc., has bought 21 lots at Greenleaf Farms off of Poverty

Hollow in June for $2.67 million and just purchased 28 lots in Middleton

Heights off of Blackman Road for $2,198,000.

Homes at Greenleaf will be in the $500,000 range, while homes at Middleton

site will be at least above $300,000, said Greg Kamedulski, a Toll Brothers

regional manager.

The 28-year-old company selling homes at the average cost of $370,000 is the

first large builder to come into Newtown. Up until now, area builders and

developers have put the houses up.

Newtown, as well as other towns in Fairfield County, have been of interest to

Toll Brothers lately because the area has a market for luxury homes.

"We like the area and want to expand," said Rob Parahus, a divisional vice

president for Toll Brothers.

The recent acquisitions were generally not considered good news to area

builders and developers, who are wondering how this new competitor will affect

them.

Some say it could actually help the Newtown market, but others are concerned

it could be like Home Depot coming to town and rubbing out the mom and pop

hardware store.

The builders interviewed said the Greenleaf Farms development is not a worry

to many of them because not many builders put up such expensive homes. Most

will be watching to see what Toll Brothers does with the Middleton lots, which

will be at least $300,000.

Toll Brothers, calling itself the largest luxury home builder in the country,

has only been buying land in Fairfield County since 1992, Mr Parahus said.

While Fairfield County has always fit the company's criteria demographically,

land was too expensive in the 1980s, said Kira McCarron, vice president of

marketing.

It started purchasing land in Southport, and has since acquired another

development in Southport, two in Fairfield and one in Wilton. Homes are

ranging from around $300,000 to $500,000.

Kurt Hersher, managing partner of Bennetts Farm Associates which is developing

land off of Bennetts Bridge Road, said the builders in Fairfield were not put

out of business by Toll Brothers.

"There is a place in Newtown for Toll Brothers, and there is a place in

Newtown for the Newtown builders and developers," he said.

He does not foresee this large company creating any problems, and in fact,

said they might help the Newtown market.

"It will create more traffic," he said.

Builder Calvin Blackwell, owner of Suma Designs of Sandy Hook is nervous,

however. He said he is not sure what impact Toll Brothers will have, but knows

that this large company has greater buying power and more resources than he

does.

"And that is just the tip of it," he said. "Everybody is concerned."

Local builder Ronit Glantz of Landmark Homes said she will just make sure not

to compete directly with Toll Brothers. If Toll Brothers chooses to build

homes around $350,000, she will try to build a home in a different price

range.

Tom Maguire, part owner of M&E Land Group, said he builds homes under $300,000

and is therefore not losing sleep over Toll Brothers coming to town.

"I would probably be more rattled if they were in my price range," he said.

He and other builders said that Toll Brothers builds a prefabricated home, and

there should always be a market for the custom builder with a solid

reputation.

Ms McCarron said Toll Brothers builds a semi-custom home and gives customers

the choice of 80 floor plans.

Bob Gleason, a general contractor and owner of Remax of Newtown, said Toll

Brothers will create tough competition, but it certainly will not corner any

markets here.

The company has sent a letter to area real estate agents stating an interest

in properties with 20 or more lots. Mr Gleason said Newtown does not have many

large sized developments like that, but has plenty of small parcels to be

developed.

"I don't think they will undercut the market. They will just be part of

Newtown's building boom," he said.

Mr Kamedulski of Toll Brothers agrees.

He said that not many local builders have the capital to buy large pieces of

land, develop it and have time to sell all the lots.

"We will not be competing against each other," he said.

Toll Brothers was started by Robert and Bruce Toll in 1967 in the Philadelphia

area. Until 1981, Toll Brothers operated exclusively in the Pennsylvania area.

In 1986, the company went public. Ms McCarron said Toll Brothers is currently

developing properties in 13 states, and is ranked the 13th largest builder in

the country by a trade publication.