May 22, 2018

Builders Eye Converting Strip Malls Into Homes

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Builders Eye Converting Strip Malls Into Homes

Some home builders are turning away from undeveloped land in far-suburban and rural areas and targeting places once considered urban blight. “After all, more home buyers are seeking an urban lifestyle in walkable neighborhoods, so we have to get more creative where we find land,” Douglas Yearley Jr., CEO of Toll Brothers, said during a session at the National Association of Real Estate Editors conference last week. 

Yearley says Toll Brothers is finding land to build on by targeting failing shopping malls, defunct car dealerships, and aging office buildings. For example, Toll Brothers teamed up with Starwood Capital Group to clean up a blighted waterfront property under the Brooklyn Bridge in New York and build a project that included a hotel and more than 100 luxury condos. Yearley also noted a redevelopment project in Hoboken, N.J., to convert a former Maxwell House Coffee plant into a condo building.

Source: “Toll Brothers Home Builder Looking for New Lots in Low Places,” The Denver Post (June 14, 2017)