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T H E M A G A Z I N E F O R C O N S T R U C T I O N E X E C U T I V E S

US DEVELOPERSJOURNAL

Summer 2008 www.usdevelopersjournal.com

TOWN & COUNTRY HOMESRoom to Breathe in the Thick of it All

2 | US ExECUTivE JOURNal Summer edition 2008

Room to Breathe in the Thick of it All Written by Shelley Seyler & Produced by Richard Callahan

Town & Country Homes

2 | US DEvElOpERS JOURNal Summer edition 2008

A History

Everyone in the construction industry recognizes the importance of location. At Town & Country Homes, they balance the importance of natural surroundings and having “room to breathe” with proximity of good schools, health care, entertainment, and shopping.

Founded in 1958, Town & Country has built more than 25,000 town homes and single-family houses. A K

Hovnanian company, Town & Country’s homes range in price from $160,000 to $500,000 and are located in the Chicago area, the fifth largest housing market in the United States.

Andy Konovodoff became president of Town & Country Home’s Chicago Office in September 2004. His dad, who did business with the Hovnanian brothers years before, was also a general contractor which exposed

US ExECUTivE JOURNal Summer edition 2008 | 3US DEvElOpERS JOURNal Summer edition 2008 | 3


Their Services

Town & Country’s specialties include single family and town homes, some of which are estate size, as well as Active Adult Communities. They hold their “bread and butter” in single and multi-family homes, though they

him to the industry throughout his childhood. “Dad had me do a little bit of everything,” said Andy, including work on contracts with Hovnanian. In the early 1990s, he started work-ing for Hovnanian, moved to Chicago in 1995, and climbed his way up to become president of Town & Country in 2004.

are migrating into mid-rise and assisted-living residenc-es.

Town & Country sub contracts all their trade work bringing their extensive management experience and innovations to projects such as Wonder Home Technology. This unique aspect of some Town & Country homes caters to those in the ever-changing mid western climate. With upgraded insulation for high-er comfort and lower energy bills, and HVAC design with fresh air intake systems for more efficient heating and cooling, the home owner is able to avoid some increased energy costs while also increasing their home’s comfort.

Also included in this aspect of the construction and plan-ning is an Optimum Valued Engineered Framing System for a stronger-framed home. Drainage planes, draft stop-pers, low-E glass, Smart Trim, block-wall construction, and every-bay baffling provide additional construction qual-ity and safety details. All this proves what their Web site says: “We sweat the

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“ [The mortgage crisis] started in the resi-dential market, then filtered down into the retail, condo, and hotel markets. Some proj-ects have been canceled and some have been put on hold,” added Puetz.



construction and safety details so you never have to think about them.”

In their Chicago office, Town & Country has added DesigerEXPRESS, homes that are move-in ready for those in a time crunch. Inspirations Design Studio provides guidance for selecting details that will make the home individualized for each family.

National Recognition

On March 1, 2005, Town & Country became a K Hovnanian company, partaking in what is considered to be the larg-est private homebuilder acquisition transaction ever completed. Since its founding and 1959, K Hovnanian has built 277,000 homes and is the sixth largest home builder in the United States. Hovnanian Enterprises, Inc. has since helped Town & Country develop their residential commu-nities.


Recent Projects

Town & Country is currently working on a “Hunt Club” in Oswego, Illinois which consists of 300 units of single-family homes that range from 2,200 to 3,500 square feet. In Wauconda Illinois, they are constructing Domenella,

Town & Country has also been recognized in other ways. In 2004, Builder Magazine ranked them as the 52nd largest builder nationally. As a family-owned business in an industry comprised of companies who often build between five and 20 houses a year, this is a remarkable accomplishment.

single family homes that range in size from 1,800 to 3,300 square feet. This development is adjacent to their very successful master plan, Liberty Lakes, which is almost completely full.

In 2007, Town and Country’s 70 employees produced revenues of $186 million. So far in 2008, revenue is at $93 million, but this success has not come easy.

Managing Today’s Worried Markets

It is perhaps impossible to escape the current econom-ic crisis, especially for those businesses in the housing industry. Town & Country is no exception and has “absolutely” been affected by the housing crisis, said Andy. Transportation costs and oil-based commodities like copper have inevitably increased in price, another problem making business more difficult.

“The consumer’s abil-ity to purchase money is impaired. Re-sales and new home purchases work hand-in-hand, but with the



current difficulty to get a mortgage, the consumer is in a catch 22 situation.” Consumer confidence is also affected by the bankruptcy of competitors. Town & Country sees competition as desirable insofar as it “keeps your blade sharp,” said Andy.

Training and maintaining the talent pool, ensuring that it “stay(s) on pace…in the current economy, can keep you awake at night,” he said. The industry as a whole is concerned with the future and it is assumed this will not turn around tomorrow.

With growth a year or two away, Town & Country plans to “maneuver the down-turn, work with the banks, and take advantage of land opportunities. Re-tooling, sharpening skills, sharpening processes, getting ready for when hous-ing improves; that’s what companies need to shoot for,” said Andy.


Working in this

market also requires that Town & Country pursue those who are “not encumbered by trying to sell a house,” said Andy. People who are “entry-level” purchasers or renters are examples.

Managing their supply chain is also a priority. “We have good resources and use the same people, employing second and third generation trades,” said Andy. They have three to five trades in each discipline which also helps Town & Country’s stability.

“We are all weathering the current storm together,” said Andy. Town & Country’s long-term relationships have allowed them to maneuver through the current down turn. These relationships have also allowed them to stem

the increase in prices of commodities, steel, and trade contracts, among other costs.

Optimistic for the Future

Town & Country views the current crisis as a relatively short-term problem and managing this crisis is necessary to plan for growth when the market comes back. Town & Country intends to take advantage of land opportuni-ties and the excessive inventories of finished lots. In five years, they plan to build 1,000 to 1,120 units a year. They are also going to increase their Web presence and cater to the retail market through the Web. The Internet has already helped them transition some aspects of their business, changing from paper to email start orders and Web scheduling.



“We want to become the UPS of home-building. To feature smooth-sailing from start to finish with increased reliance on re-tooling our process via the dynamics of new technology and being able to save because of our good trades,” said Andy

www.townandcountryhomes.com

Established : 1958Employees : 70

Annual Revenue Town & Country : $186 MAnnual Revenue A K Hovnanian : $4.7 B

President : Andy Konovodoff

COMPANY AT A GLANCE

US DEVELOPERSJOURNAL

Summer 2008 www.usdevelopersjournal.com

Town & Country Homes1806 S Highland Ave

Lombard, IL 60148-4933United States

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