KB Home (KBH) Unveils Luxury Homes in San Francisco - Analyst Blog
Los Angeles-based KB Home KBH recently unveiled a collection of 74 luxury homes, called 72 Townsend at the center of the South Beach district in San Francisco.
72 Townsend features a nine story tower of glass and steel frame. The luxury tower offers a beautiful view of the San Francisco Bay along with many first class features, such as a lobby with lounge and outdoor living spaces. The luxury tower accommodates condominiums, penthouses and townhomes. The homes can accommodate up to three bedrooms and two and a half baths.
Homebuyers can customize their properties according to their taste and opt for imported European appliances, cabinets, Caesarstone slab countertops, hardwood and stone flooring, energy-efficient systems and technology, and stainless steel appliances.
This community opening is in line with KB Home’s strategy to increase community count. Moreover, the sale of homes like 72 Townsend would drive revenues in the upcoming quarters, owing to their higher price.
The opening comes at a time when the company is experiencing fewer-than-expected home deliveries, higher construction cost, increased incentives and weaker margin, which resulted in weak earnings in fourth quarter 2014.
Given the weak scenario, KB Home expects gross margin to decline year over year in the upcoming quarters.
KB Home carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the broader building sector include Toll Brothers Inc. TOL, Quanex Building Products Corporation NX and Graña y Montero SAA GRAM. While Quanex Building Products and Graña y Montero sport a Zacks Rank #1 (Strong Buy), Toll Brothers carries a Zacks Rank #2 (Buy).
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