49 Homes Sold

04/07/2009

JOINT NEW HOME LIQUIDATION EFFORT COMES TO A CLOSE
Legend and Pacific Lifestyle Homes sell a combined 49 homes

The recent new home liquidation sale that ended on March 31st has netted a successful 49 combined home sales for local Portland builders, Pacific Lifestyle Homes of Vancouver, WA. and Legend Homes of Portland, OR.

Reorganization consultants for both builders advised the companies earlier this year that inventories of completed spec homes were far too high recommending that both builders liquidate their inventories by March 31st, 2009.

“We are thrilled with the results. To have this kind of success as the market is rebounding is a really positive sign," said Jim Chapman, president of Legend Homes. Both builders expect strong results from the sale. Pacific Lifestyle Homes was equally as successful with the liquidation. “Selling this inventory of homes is a real boost to us. By selling this additional inventory, we are now on track to emerge from chapter 11 protections,” said Kevin Wann, chief executive officer of Pacific Lifestyle Homes.

The homes offered in the sale ranged in size from 1,214 square feet to 4,462 square feet. All homes included the respective builder’s typical warranties and customer service. Homes sold for some eye popping deals from as low as $174,900.

“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 Metropolitan 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.

The communities that were 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.

The homes were sold through a unique liquidation company and website, www.newhomesale.org. The site lists new homes that must be liquidated due to bankruptcy or severe financial distress.

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 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 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.