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KB Home to Build 86 Single-Family Homes in Denver Community

Zacks Equity Research

One of the leading U.S. homebuilding companies, KB Home (KBH) recently declared that it intends to build a new gated community of 86 homes called Pinery West. Located in Denver, homes at the new community will be priced from $400,000s.

Homebuyers have the option to choose from both one and two story floor plans, which can accommodate up to six bedrooms and four and a half baths. All the floor plans will include customizable flex space, spacious kitchens and large walk-in closets.

All the homes will offer Energy Star certified appliances, which will help residents save on their utility bills. The homes will also incorporate smart home technology, which includes remote door, lighting, thermostat and security system operations. The location of the community offers the residents easy access to major employment areas, schools, shopping and various outdoor activities such as golf and hiking.

Owing to its operational business model KBnxt, KB Home always begins construction only after a purchase agreement is executed. Therefore, consumers buying KB homes have the liberty to plan their homes according to their preference.

On the back of its land investments of $859.6 million in the first six months of fiscal 2014, KB Home expects its community count to increase in the latter half of 2014. The company has planned more than 80 community openings. The recent introduction of new community is in line with the company’s strategy of increasing community count.

Improvement in community count also drove KB Home’s orders in the first two quarters of fiscal 2014. Two other homebuilding companies that witnessed positive order trends in the last reported quarter include Meritage Homes Corp. (MTH) and Lennar Corp. (LEN).

Another homebuilding company, PulteGroup, Inc. (PHM) recently acquired some of the real estate assets of Dominion Homes, one of the leading homebuilders in Columbus, OH and Louisville, KY. The acquisition secures the leading position of Pulte in the Midwest homebuilding markets of Columbus, Louisville and Lexington.

KB Home carries a Zacks Rank #3 (Hold).

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