courtesy of the
Phoenix Business Journal
Date: Tuesday, April 5, 2011
Beazer Homes (NYSE:BZH) is buying up bank-owned or auctioned properties in Phoenix and converting them into rentals with the Beazer name.
“We think this makes sense. It’s a way to put our corporate bank accounts to work,” said Carey Phelps, director of investor relations and corporate communications for Beazer Homes in Atlanta.
She would not disclose how many properties have been acquired, but said the goal is to own 100 homes in the Valley by the end of the company’s fiscal year, which is Sept. 30.
Beazer is only buying homes in communities that have been built since 2004, and are close to their own communities. They have about ten new home communities in the Valley.
Phoenix is the first market to roll out the Pre-Owned Homes Division, but the concept may be extended to other metro areas serviced by Beazer, Phelps said.
Several acquisitions have occurred, and at least one home is occupied by renters, she added.
Phelps said Beazer is competing against other investors and home buyers, but is only purchasing homes that are in excellent condition.
According to a press release, Beazer expects tenants will be people who would like to buy but are unable to qualify for financing in the current market.
Eventually the company will sell the home when the market improves.
Read more: Beazer Homes buying up Phoenix foreclosures to then rent | Phoenix Business Journal