How Central is Overcoming Two Dev Obstacles

MIAMI—Single-family homes seem to be back en vogue. At least they are if you look at companies like Central Communities. Central is building, building, building—and selling, selling, selling—single-family homes in the region.

GlobeSt.com caught up with Deb Marton, director of sales at Central, one of South Florida's largest homebuilders and is a subsidiary of 13th Floor Investments, to find out Central's plans and how the firm is overcoming two key obstacles. If you missed our previous installments of this exclusive interview, you can read still read The Single-Family Home Builder's Secret and Are Millennials Starting to Buy Single-Family Homes?

GlobeSt.com: Can you discuss a little bit about Central Communities' plans for growth and expansion, particularly in South Florida?

Marton: Central Communities has been incredibly active this cycle, growing its footprint across South Florida while keeping an eye on additional opportunities statewide. We currently have more than 900 housing lots under construction or under site development, all within the $200,000 to $400,000 range. 

Most recently, the company purchased a 33-acre infill site in Broward to build its newest single-family project, The Trails at Central Parc, which is approved for the construction of 225 homes.  Its adjacent Central Parc project, which launched pre-construction sales in June 2014, has already sold 180 homes to date—over 70% of the 253 homes in the community.

GlobeSt.com: Have rising construction costs and/or constraints with buildable land of land been an issue?

Marton: Land prices and construction costs are rising, making it difficult for some builders to offer homes at an attainable price point. Where we have been fortunate and in many ways, set ourselves apart is by managing costs in a very steady way that allows us to maintain fair market value pricing while remaining profitable. 

Early on in this cycle we saw the need for affordably priced, centrally located product and made strategic investments on infill land near employment centers.  Infill has been key to our success as it allows us to continue building in a way that creates value for the buyer. And while land constraints are certainly of concern, the right opportunities still exist if done strategically.