Toll Brothers is stepping away from the apartment business to concentrate on what it does best, writes Joseph N. DiStefano for the Philadelphia Inquirer.
The Fort Washington company is focusing all its attention on single-family homebuilding. The company announced the sale of its Toll Brothers Apartment Living unit, including 18 apartment complexes and 29 development sites, to California-based Kennedy Wilson for $347 million.
The decision follows a year of slower-than-expected housing demand. While Toll Brothers’ apartment division was profitable, analysts said its results were often difficult for investors to track within the larger company.
The company has long balanced its traditional luxury homes with large-scale apartment developments, building or starting 28,000 apartments over the past decade.
Kennedy Wilson, which already owns or manages more than 80,000 apartments nationwide, will take over management of Toll’s projects as part of the deal. Analysts applauded the move, noting it strengthens Toll’s financial position in a challenging market.
Despite the softer housing climate, Toll leaders said the company plans to stick with higher-priced projects rather than cut costs, underscoring its confidence in the market for premium homes.
To read more about Toll Brothers’ strategic pivot, visit The Philadelphia Inquirer.
