Liquidation Effort Sells 33 Homes

03/06/2009

JOINT NEW HOME LIQUIDATION EFFORT NETS MAJOR SALES
Legend and Pacific Lifestyle Homes sell 33 homes

The new home liquidation sale launched in late January has netted 33 combined home sales for local Portland builders, Pacific Lifestyle Homes of Vancouver, WA. and Legend Homes of Portland, OR.

The sale featured over 100 homes from around the Portland metro area. Houses were located in neighborhoods as far south as Corvallis and as far north as Woodland, Washington.

Both firms filed for Chapter 11 reorganization in 2008 and are in the midst of working through reorganization procedures. Each company reports positive progress with plans to emerge by the third quarter of 2009.

“These are two of our industry’s leaders and I applaud their efforts. It shows how even the biggest players in one industry can work together to reach a common goal,” said Dave Nielsen, chief executive officer of the Home Builders Association of Metro Portland.

Legend Homes is one of the Portland metro area’s most enduring builders. Founded in 1965 by David Oringdulph, the company sold 1,760 homes between 2004 through 2008.

Pacific Lifestyle Homes is headquartered in Vancouver, Washington. The company was founded in 1996 and is owned by Kevin Wann. From 2004 to 2008, the company closed 1,292 homes, and in 2008, the company sold 135 homes.

Sale to Conclude March 31

Reorganization consultants for Pacific Lifestyle Homes and Legend Homes have advised that current inventories of completed spec homes are too high. Experts recommend that both builders liquidate their inventories.

All homes included in the sale must be sold by March 31, 2009 for the companies to remain on target with their reorganization plans.

“As the market slowed and demand for new homes decreased, we were left with an oversupply of completed homes," said Jim Chapman, president of Legend Homes. Both builders expect strong results from the sale. “The homes are certainly priced to sell. Once we reduce overall inventory numbers, we will return to a very manageable operating position,” said Kevin Wann, chief executive officer of Pacific Lifestyle Homes.

The homes offered in the sale will range in size from 1,214 square feet to 4,462 square feet. All homes include the respective builder’s typical warranties and customer service. Potential buyers can make offers to purchase any of the homes from prices as low as $174,900.

The communities included in the sale are in Happy Valley, Hillsboro, Tualatin, Tigard, Wilsonville, and Clackamas in the Portland area; and Camas, Ridgefield, Vancouver, Washougal, and Woodland in Southwest Washington. Additionally, there are homes in North Albany, Corvallis, Lafayette, and Salem in the Willamette Valley.

Buyers interested in purchasing a home during the sale can view the available homes being liquidated at www.NewHomeSale.org.

Company Restructuring Moving Along For Both Firms

Both Pacific Lifestyle Homes and Legend Homes report positive movement toward emerging from Chapter 11 protections.

Legend Homes, who filed for its reorganization first, has found the process to be very positive. “It has allowed us to restructure our capital position and review our entire operation. I think anytime that you do that, you will find better ways to operate,” said Chapman. Legend is expected to emerge from Chapter 11 protections during the third quarter of 2009.

The outlook at Pacific Lifestyle Homes is also up. “Our team has remained extremely positive. The reorganization was about restructuring our debts and overall capital picture. We finished 2008 with a very positive sales quarter,” said Wann. Pacific Lifestyle Homes is expected to emerge from Chapter 11 protections sometime in the third quarter of 2009.

“Two thousand eight was a really tough year for many of our builders. Navigating the changing credit markets and requirements of the lending institutions were major challenges. This year, with institutions stabilizing and interest rates hitting a 50-year low, things should be looking up,” said Nielsen.

About The Sale: Over 100 homes built by Pacific Lifestyle Homes and Legend Homes are being liquidated. The homes represent the firms’ 2008 inventory of unsold, completed homes. All homes must be sold by March 31, 2008. Homes are offered on a first come, first served basis and will be removed from the liquidation once an offer has been accepted. Interested buyers can see the entire inventory at www.NewHomeSale.org.

About Pacific Lifestyle Homes: Pacific Lifestyle Homes is locally owned by Kevin Wann. The company was founded in 1996 and since its inception, has built 2,000 homes throughout the greater Portland area. Pacific Lifestyle Homes is one of the most celebrated builders in Southwest Washington and Northern Oregon, and is a two-time winner of the prestigious Builder of the Year award from the Clark County BIA.

About Legend Homes: For over 40 years, Legend Homes has been a key fixture in Portland homebuilding industry. It is a market leader in the design and construction of innovative homes in the greater Portland and Corvallis metropolitan areas. Legend Homes is known for its high-quality green homes that are crafted with premium materials to ensure sound structures, enduring strength, and improved air quality and energy efficiency. Legend Homes is a two-time recipient of Builder of the Year awards, one from the Oregon Association of Home Builders and one from the Home Builders Association of Metro Portland.