A Fortune 500 luxury home builder is moving into the South Carolina market after acquiring Sabal Homes of Mount Pleasant.
Pennsylvania-based Toll Brothers announced Thursday it will expand into the Charleston, Greenville and Myrtle Beach areas with its latest acquisition. Financial terms of the deal were not disclosed.
As the fourth-largest home builder in the nation, Toll Brothers had revenue of more than $7.1 billion in 2018, when it closed on more than 8,200 housing units.
The acquisition will bring to Toll Brothers $30 million in Sabal backlog of 80 homes with an average price of $380,000, 1,600 lots and more than a dozen selling communities across the Palmetto State.
Developments where Sabal builds homes in the Charleston region include Bennett's Bluff on James Island, Carnes Crossroads in Goose Creek, Foxbank Plantation near Moncks Corner, Johnston Pointe on Johns Island and the Coves at Lakes of Cane Bay in Cane Bay Plantation in Berkeley County.
Founded in 2005 by Matt Jones, Jason Simpson and Todd Ussery, Sabal has built more than 1,375 homes. It targets a range of homebuyers including first-time, move-up and move-down buyers at price points from the high $200,000s to more than $700,000.
The head of Toll Brothers said Sabal's range of home offerings will help the national firm broaden its product line and price points.
"Charleston, Myrtle Beach and Greenville are vibrant Top-50 housing markets with favorable demographics and strong population growth," CEO Douglas C. Yearley said.
Jones of Sabal said the company's new owner will support Sabal's further expansion across the state.
"We are confident that the relationships we have built over the past 15 years, combined with Toll Brothers’ financial resources, will accelerate our growth here in South Carolina,” Jones said.
Toll Brothers started in 1967 and became a publicly traded company in 1986. The builder serves move-up, empty-nester, active-adult and second-home buyers, as well as urban and suburban renters in 23 states and the District of Columbia.
Through its affiliates it acquires and develops rental apartment and commercial properties. It also develops urban low-, mid- and high-rise for-sale condominiums through Toll Brothers City Living.
The company operates its own architectural, engineering, mortgage, title, land development and land sale, golf course development and management, and landscape subsidiaries. Its security arm, TBI Smart Home Solutions, provides homeowners with home automation and technology options.
Toll Brothers also operates its own lumber distribution, house component assembly and manufacturing operations. Additionally, its Gibraltar Real Estate Capital joint venture provides builders and developers with financial resources.