Story Credit: John Brasier, The Business Journal
A longtime Triad homebuilder is gearing up to begin on seven new single-family communities, including a 175-home subdivision in a fast-growing area.
A few weeks ago, Shugart Homes of Winston-Salem closed on 100 acres of farmland near Graham that it purchased from Dixie W. Rogers and members of the Rogers family for $827,500.
Greg Garrett, vice president of land acquisitions for Shugart, said the builder is expected to break ground on the Rogers’ Springs subdivision in January or February. The subdivision is south of Interstate 40 along Rogers Road, just north of Little Alamance Creek and adjacent to Forks at Alamance, a Windsor Homes development.
Homes will range from 1,700 square feet to 3,000 square feet, starting in the low $200,000s and topping out around $300,000. Garrett said Rogers’ Springs will have a mix of one-story, two-story and patio homes built in a handful of phases, lasting perhaps five or six years. The first home will be a sales model.
“It’s our biggest project since the Great Recession,” Garrett told Triad Business Journal.
Garrett said Alamance County continues to grow as the Triangle market continues push westward. Shugart has built out Graham subdivisions Southpark and Hideaway Village.
Shugart ranked as the Triad’s No. 3 builder in 2017 with 283 closings, behind only Wade Jurney Homes and D.R. Horton.
“We’ve had a lot of success in Alamance County. There’s definitely a spillover from the Raleigh market,” Garrett said. “We’re in re-load mode.”
Shugart, which recently completed build-out on subdivision of more than 200 homes each at River Gate in Clemmons and Stone Ridge in Gibsonville, is cranking up despite significantly increasing prices in materials and labor.
Greg Garrett, standing, vice president of land acquisitions for Shugart Enterprises, is pictured in this file photo with founder Grover Shugart.
Garrett said the price of similar homes has increased as much as $50,000 in the past few years, with the development of lots and infrastructure leading the way.
In the past two or three years, Garrett said Shugart has found a “sweet spot” in the $170,000 to $280,000 price range. Shugart had emphasized lower-priced homes after the recession that began about a decade ago.
He said the company’s single-story floor plans have been especially popular.
“I think something we do extremely well is ranch floor plans,” he said.
Garrett said Shugart expects prices in the $200,000s and $300,000s to be especially popular in areas such as Lewisville and Clemmons, where many new homes are higher priced.
Garrett said the recent completions of River Gate and Stone Ridge are the reason for the timing of Shugart’s new subdivisions in 2019, which will include:
- Rutherford, an 18-lot subdivision next to Greenbrier Farm in north Winston-Salem, built on a cul-de-sac with homes in the upper $200,000s and low $300,000s.
- Belle Grove, a 25-lot subdivision next to Willow Run pool off Styers Ferry Road in Lewisville with prices ranging from the mid-$200,000s to the low-$300,000s.
- Watkins Landing, an 88-lot subdivision at the northwest corner of Teague Lane and Watkins Ford Road in Kernersville with homes in the low $200,000s.
- LaBella, 19 homes on 1-acre lots near Drummond Estates near Kernersville with homes starting in the upper $200,000s.
- Stillwood, an 88-lot project near Kernersville with homes on one-third acre lots, ranging from the low to the high $200,000s.
- Manning Crossing North, 33 lots next to Manning Crossing on Gibsonville Ossipee Road in Gibsonville.
Shugart also plans to build one-story, twin townhouses with two-car garages at The Stables at Harris Farm, off N.C. 62 in Burlington, just south of I-40.
Though interest rates are likely to continue to rise with increases by the Federal Reserve, Garrett said mortgage rates aren’t the industry’s biggest concern.
“The biggest concern is increases in costs,” he said.