Absent NYC land deals, Toll looks to LA National homebuilder’s been heavily scouting sites out west
121 East 22nd Street and Doug Yearley
For the better part of three years, national homebuilder Toll Brothers has been window-shopping around New York City but hasn t yet opened up the checkbook.
With another quarter in the books and no new land buys, the Pennsylvania-based firm faced questions Tuesday about its strategy going forward, particularly after CEO Doug Yearley described growing opportunities in Los Angeles, where he visited three potential development sites there over the past month.
“We’ve always wanted City Living to get to the West Coast,” Yearley said during an earnings call Thursday, referring to Toll Brothers urban development division, which until has operated largely in the New York metro area.
Yearley dismissed the suggestion that Toll Brothers was retreating from New York in any way, and said it’s no secret that the company’s “been hunting for years” for land in Los Angeles. The firm also paid $81 million last year for a 34-acre site in the San Francisco Bay area that comes with approvals for about 1,000 residential units.
“We continue to look hard in New York City [but] land prices have been too high. It’s a risky business, as we’ve talked about, which means you need a significantly higher gross margin and we will not change the underwriting,” he ad爱上海同城手机版