A veteran
Carl Mulac, a former division president of
“I met them about a year ago. They were looking to invest in down markets, which is something they have done before,” Mulac said.
He isn’t saying how much JEN Partners is putting in, but
The property was partially developed in 2007-08 by Merit Homes, a small Phoenix-based home builder; but the project reverted to the lender, National Bank of
All of these transactions have taken place during the past three months. Mulac did not disclose financial details.
He’s been on a fast track since leaving his position with Engle Homes on April 15. The Florida-based home builder, owned by Tousa Inc., is in Chapter 11 bankruptcy and has departed the
“It was time to do something on my own,” he said.
Mulac is looking to buy several projects that have ground to a halt, but he would not disclose which ones. He said he decided to start with the
Frank Owens, a researcher and consultant to the home building industry, believes Mulac is making a good move by focusing on an infill site.
“The private builders will be in a better position to do infill than the public builders will be,” he said. “Public builders have to rely on volume, so they gravitate to the outskirts.”
The key will be pricing and repositioning, Owens said.
“To do a startup at this time will be a challenge, but Carl has a long-term perspective,” he said. “He’s well-connected and he is well-respected.”
That Mulac was able to attract financial backing from JEN Partners impressed Owens. Founder Reuben Leibowitz is a real estate financier with market experience dating back at least two decades, and he is well-known nationally, Owens said.
“It’s very fortunate that Carl has gotten hooked up with them,” he said.
That’s not to say Mulac will have long purse strings, nor does he want that.
“The new model of home building is that it’s got to be light with a very skinny overhead structure,” Mulac said. “We’re going to keep the overhead very small, but provide great customer service.”
Another believer is housing consultant Jim Belfiore. He said smaller builders are more able to acquire land, particularly distressed property, at much lower prices, and thus allow more affordability when the homes are delivered to consumers.
“New startup builders … have the advantage of purchasing land and lots at lower prices than surrounding, existing competition … and knowing what home buyers want,” Belfiore said.
Mulac, he added, will bring expertise and agile thinking to the local market.
Carl Mulac
Company:
Previous experience:
Development: Arboleda Ranch
Location:
Specs: Gated community, 29 lots, homes 2,400 to 4,000 square feet
Web: www.josephcarlhomes.com