Condos up next for D.R. Horton?

Builder to venture into high-rise market with Uptown tower

12:00 AM CST on Thursday, November 10, 2005
By STEVE BROWN / The Dallas Morning News

D.R. Horton – the country's largest homebuilder – is plotting a move into the high-rise residential market.

The Fort Worth-based builder has teamed up with a Bedford developer who plans to construct an Uptown condo tower.

The project is still in the planning stages, but word about it is widespread among real estate brokers. D.R. Horton officials did not return phone calls or e-mails.

Planned for a block at McKinney Avenue and Akard Street, the 21-story project is one of two residential buildings proposed for the site by Centurion American Development Group.

Centurion is designing a building with about 150 units, which D.R. Horton would build out.

"We are just building the shell," said Centurion president Mehrdad Moayedi. Horton will then finish out the condominiums "a floor or two at a time," he said.

"It will be another 30 or 40 days before we have an announcement."

The building site also has room for a second, 10-story condominium plus a free-standing restaurant, Mr. Moayedi said.

Horton builds more than 50,000 homes a year in 23 states. Although most of the company's construction is traditional single-family homes, the builder is increasing its offerings in higher-density housing, including townhomes.

"We have talked to a few builders that have looked at this concept," said Ted Wilson, an industry analyst with Dallas' Residential Strategies Inc. "With the competition in this market, a lot of builders are venturing into new areas."

Mr. Wilson said a company such as Horton could be a formidable competitor in the high-rise condo market.

"You have a Wall Street company acting as a principal in this," he said. "You also have Horton's strength in marketing."

Few traditional builders have entered the booming high-rise residential market, but condominium sales are surpassing single-family home activity in select U.S. locations.

"It doesn't surprise me that the big builders are moving in that direction – especially in markets where condo product has proven to have a lot deeper demand than single-family," said long-time Dallas housing analyst Ron Witten.

"The big builders are eager to maximize their volumes."