Leading California Homebuilder Wathen Castanos Homes Acquired by Trumark Homes

Rhea-AI Summary

Wathen Castanos Homes, a leading California homebuilder, has been acquired by Trumark Homes, a subsidiary of Daiwa House USA Inc. The acquisition will allow Trumark Homes to expand its presence in the Western United States. Both companies share a commitment to quality homes and customer experience.

Positive

• Trumark Homes acquires Wathen Castanos Homes, expanding its presence in the Western United States
• The acquisition will allow Trumark Homes to exceed $1B in revenue in 2024

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• None.

BETHESDA, Md.--(BUSINESS WIRE)-- Wathen Castanos Homes, a leading award-winning California homebuilder, announced the acquisition of its homebuilding business by Trumark Homes, a subsidiary of Daiwa House USA Inc.

Originally founded in 1983 and currently led by President, CEO, and partial owner Josh Peterson since 2014, Wathen Castanos Homes is a leading private homebuilder in California's Central Valley and Central Coast with a long-established legacy of homebuilding success. Currently building in San Luis Obispo, Monterey Bay, Clovis, Fresno, and Madera, Wathen Castanos Homes is known for its award-winning design and energy efficiency.

"We are very excited and honored to join the Trumark Homes family," said Peterson. "This transaction represents the culmination of an extensive process run by Tony McGill and his team at Zelman & Associates to analyze our strategic alternatives and find the best long-term partner for all of our stakeholders, especially our employees, land partners, and subcontractor partners. Over the decades that we have been in the homebuilding industry, we have always been guided by a foundation of quality and values, a tradition of craftsmanship, and dedication to high-quality customer care. Trumark Homes shares these same guiding principles as well as the resources to accelerate our growth, which makes them the perfect match for us."

Trumark Homes launched a new homebuilding division in Colorado in 2021, capitalizing on the robust housing market there. That move marked the company's first foray outside of California, signaling its ambition to become a dominant player in the western U.S. homebuilding landscape. The acquisition of Wathen Castanos Homes is the next step toward that vision as the company eyes additional growth opportunities in the Western United States to take advantage of the vast resources of Trumark's parent company, Daiwa House.

"Our acquisition of Wathen Castanos Homes is a unique opportunity to fulfill several of our strategic goals," said Gregg Nelson, co-founder and Co-Chief Executive Officer of Trumark Companies. "First and foremost, our companies share a similar culture as well as a commitment to building quality homes and providing an unparalleled homebuyer experience."

Added Michael Maples, co-founder and Co-Chief Executive Officer of Trumark Companies, "With today's announcement, our homebuilding portfolio is now contiguous from Northern California to Southern California. This is another important step forward in our vision of becoming the dominant regional homebuilder in the West, as this acquisition will allow us to exceed $1B in revenue in 2024."

Nelson, Maples, and Peterson emphasized the quality of employees and dedication both Trumark and Wathen Castanos have to their highly skilled teams as integral to the value of joining the two companies.

Zelman & Associates, a subsidiary of Walker & Dunlop, served as the exclusive sell-side investment banker to Wathen Castanos Homes.

Founded in 2007 by Ivy Zelman and Dennis McGill, Zelman & Associates is the leading institutional research advisory and investment banking firm dedicated exclusively to the U.S. housing industry. Zelman provides distinguished institutional research and investment banking capabilities with the highest levels of client service, trust, sophistication, and credibility unique to the housing, institutional research and investment banking industries. This transaction continues Zelman's position as the #1-ranked M&A advisor for residential builders and developers since 2015.

All securities offered through Zelman Partners LLC, a registered broker dealer and member of FINRA and SIPC.

About Walker & Dunlop

Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States. Our ideas and capital create communities where people live, work, shop, and play. The diversity of our people, breadth of our brand and technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231019196536/en/

Investors:

Kelsey Duffey

Investor Relations

Phone 301.202.3207

investorrelations@walkeranddunlop.com

Media:

Nina H. von Waldegg

VP, Public Relations

Phone 301.564.3291

info@walkeranddunlop.com

Source: Walker & Dunlop, Inc.

FAQ

Who acquired Wathen Castanos Homes?

Trumark Homes, a subsidiary of Daiwa House USA Inc.

What are the expansion plans of Trumark Homes?

Trumark Homes aims to become a dominant player in the western U.S. homebuilding landscape.

What are the benefits of the acquisition?

The acquisition allows Trumark Homes to expand its presence in the Western United States and exceed $1B in revenue in 2024.

What are the shared values between Trumark Homes and Wathen Castanos Homes?

Both companies share a commitment to building quality homes and providing an unparalleled homebuyer experience.