Silicon Valley Business Journal
From the article:
To say that KB Home has several irons in the fire would be an understatement. At the same time that the for-sale builder is working toward final approval on San Jose's Communications Hill -- the largest master-planned community in the Bay Area outside of Hunters Point and Treasure Island -- it is picking up 25-lot deals in Morgan Hill. And while it markets the final tranche of 25 units at its Santana Row-area Vicino project, it plans to double its "community count" in the region in the next year.
"Right now we're on a very nice growth trajectory in the nine-county Bay Area," Chris Apostolopoulos, president of KB Home Northern California, said. "There's not a market that's off limits at this point."
I spoke to Apostolopoulos shortly after the company reported improved quarterly results in the second quarter. KB said it was delivering more homes at higher prices -- a good sign for the nation's housing market, and the economy as a whole. Its loss narrowed to $3 million from a loss of $24.1 million a year ago.
KB's Northern California division is widely considered a crown jewel in the company's nationwide portfolio, and it's easy to see why. At KB's 104-townhome Vicino, KB's seen prices zoom from a median of $580,000 to $700,000. The company's average selling price across markets was $290,400 in the recent quarter.
Here are a few takeaways from my conversation.
Communications Hill moving ahead
KB Home continues to seek entitlements for the final phase of Communications Hill, the largest developable chunk of bare land in the city. KB is in contract on the remaining undeveloped 300 acres, where it could build up to 2,000 units on about 75 of those acres. The project also includes a commercial component, which KB Home is also shepherding through the planning process.