Toll Brothers, Inc.
(
TOL
) entered into a partnership with Shea Baker Ranch LLC, a member of
the Shea family of companies (Shea), to develop Baker Ranch, a
master-planned community in Lake Forest, California.
Designed to cater to a variety of buyer profiles and price
points, Baker Ranch will have three segments offering single-family
attached, detached and multi-family homes. Baker Ranch will
be having about 1,780 single-family homes and 414 rental
apartments. The construction is expected to start from fall of
2012. The company expects to offer homes for sales by spring of
2014.
The homeowners in Baker Ranch will have 40 acres of open space,
an 8.4 acre central park, seven neighborhood parks with three
having private recreation clubs, walkways and bicycle paths. Baker
Ranch is close to popular locations like Foothill Transportation
Corridor, Irvine, Laguna Beach and Newport Beach.
The ranch is also near to Irvine Spectrum, which consists of
more than 130 retail stores, reputed restaurants and other
entertainments.
Lake Forest has several industrial, commercial and business
offices. It is close to Los Angeles, San Diego and the Inland
Empire. Baker Ranch is in the Saddleback Valley Unified School
District, containing some highly reputable schools.
Toll Brothers, Inc. is one of the leading homebuilders in the
United States. The company is focusing on raising the quality and
the luxury quotient of the products and hopes to benefit from the
rise in quality.
The company expects to deliver 2700 to 3200 homes in fiscal
2012, out of which it has already delivered 1235 homes in the first
6 months of fiscal 2012. The average price is expected to be within
the range of $560,000 to $580,000 per home for the remaining
quarters of fiscal 2012.
The partnership with Shea Baker Ranch LLC will help Toll
Brothers develop one of the most premier locations in the
U.S. We are optimistic about the company's performance and
believe that it can use the opportunities as the housing market
recovers further. The company's focus on raising the quality and
the luxury quotient of the products (thus raising the average price
of the homes) and reducing cost seems to be paying off.
Toll Brothers presently retains a Zacks #1 Rank, which
translates into a short term Strong Buy rating. One of its peers,
Lennar Corporation
(
LEN
) carries the Zacks #3 Rank in the near term (Hold rating).
Headquartered in Horsham, Pennsylvania, Toll Brothers, Inc.
offers luxury residential communities; single family attached and
detached homes and urban communities. The company caters to 20
states in the United States.
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