Wednesday, January 9, 2008 - 1:32 PM EST
SeaGate Homes acquires 51 Palm Coast lots
Jacksonville Business Journal

SeaGate Homes LLC has acquired all 51 remaining lots owned by Masterpiece Homes Inc. in Palm Coast for $1.1 million.

The Palm Coast-based residential homebuilder intends to use the lots to build homes ranging in size from 1,350 square feet to 3,786 square feet and starting in price from the $130,000s for the lot/house package.

"This purchase will allow us to continue to provide outstanding value and meet the demand for affordably priced homes," SeaGate Homes Vice President of Operations Mike Sawdai said in a news release. The lots were part of a larger disposition in December of about 1,400 lots in five states owned by Masterpiece Homes' parent company Orleans Homebuilders Inc. (AMEX: OHB). In all, the Bensalem, Pa.-based company sold 560 lots in Florida. The other lots sold were in Illinois, Arizona, Virginia and North Carolina.

"These transactions are a positive strategic event for the company," Orleans Homebuilders Chair and CEO Jeffrey Orleans said in a news release. "We felt it was prudent in today's environment to enhance the company's financial position with the disposition of certain non-strategic assets."

Orleans Homebuilders builds single-family, townhome and condominium units in eight states in the Northeast, Midwest and South. The publicly traded company acquired the outstanding stock of Masterpiece Homes in 2003. According to the company's Web site, Masterpiece Homes had a presence in Flagler, Volusia, Osceola and Lake counties. A representative of the company did not return a phone call by press time.

Founded in 1994, SeaGate Homes builds single-family homes and townhouses in St. Augustine, Palm Coast, Daytona Beach and Edgewater. The company ranked No. 26 on the Fastest-Growing Private Companies List in The Business Journal's 2008 Book of Lists with $112.3 million in revenue in 2006. Based on a 35.2 percent average annual increase in revenue from 2004 to 2006 the company ranked No. 7 on the Fastest-Growing Private Companies By Dollar Volume list.

With the addition of the Masterpiece Homes lot inventory Sawdai said SeaGate now owns about 120 lots in Palm Coast.