Business Profile: Astoria Homes
Privately-held builder competes with national firms

Principals:	Tom McCormick, president; Joel Laub, chief executive officer
Address:	9555 Del Webb Blvd Las Vegas, NV 89134
Phone Number:	(702) 257-1188; Fax: (702) 221-1491
Year founded:	1995
Web site:	www.astoriahomes.com

Southern Nevada's unprecedented growth has sent housing demand through the roof. Last year, Clark County's population increased to 1.64 million, up from 1.58 million the previous year. With roughly 5,000 new residents a month, there were 25,230 new home sales in 2003, marking a new single-year record. It surpasses the previous 2001 sales record by 10 percent.

As such, many of the top builders in the Las Vegas Valley are now firms publicly-traded on the New York Stock Exchange, including KB Home, Pulte, Pardee, Richmond American, Centex, and D.R. Horton, among others. Typically, national production builders have the capital reserves needed for acquiring large tracts of raw land, leaving little room for smaller builders.

Property prices increased 27 percent valley-wide last year, reaching $300,000 an acre in some submarkets. Despite this, one local company has continued to grow and flourish in an increasingly cut-throat homebuilding market. Nine-year-old Astoria Homes of Las Vegas sold 780 new homes last year. They were one of only two privately-held firms to crack the top 10 in new home sales in 2003.

"Astoria has great intuition and personnel, coupled with a quality product and customer service, which enable them to compete against better financed public companies," says Steve Bottfeld, executive vice president of Marketing Solutions, a Las Vegas-based consumer research firm. "They are very attentive to the small details that can often get overlooked in a new home."

Founded by Tom McCormick and Joel Laub in 1995, Astoria recorded just 35 home closings during its first year in business. Five years later, the firm had 819 home sales, making it the nation's third-fastest-growing builder in 2001, according to Builder magazine.

Astoria expects to close sales on 1,000 new homes this year, setting a new company record.

"We feel that we need to get bigger in order to stay competitive," says Tom McCormick, president of Astoria Homes. "But we still want to focus on the smaller lots and price sensitive buyer."

Astoria's success lies in its reputation for thoughtful distinctive-looking, energy-efficient homes that lower heating and cooling costs.

The company has six communities under development, including: Independence, The Courtyards and The Verandas at the Peaks in southwest Las Vegas; The Hills in Henderson; Silverado Place in southeast Las Vegas; and Centennial Village in northwest Las Vegas. Homes range from 1,124 square feet to 4,500 square feet in size, and are priced from the mid $100,000s to the mid $400,000s.

"We create a tailored product line for a specific market segment based on independent research," McCormick says. "There is no set formula."

At present, Astoria is seeing young home buyers, 25-to-35-years-old, who want to know their neighbors. As a result, the company is designing larger front porch areas, recessed garages and landscaped sidewalks at some of its communities to encourage more neighborhood interaction.

Currently, Astoria has 500 acres of inventory and seven new communities planned, with three slated open this summer at Tapestry at Town Center in the northwest, plus one at Lone Mountain; two in Aliante in North Las Vegas, and two at Mountain's Edge. There are roughly five different floor plans available per community.

"Astoria has a history of creativity and taking risks where the rewards can be great," Bottfeld says. "They have one of the most outstanding teams in the valley."

The 130-employee company has built over 3,000 homes in the Las Vegas Valley, garnering numerous awards for its developments, including 18 honors from the Southern Nevada Home Builders Association. In 2001, Astoria landed the Summit Award from the Professional Warranty Service Corporation, which recognizes superior customer service.

And while the firm's success has attracted attention from bigger builders, Astoria rebuffs any buy-out rumors.

"Building homes is what I always wanted to do," McCormick says. "Besides, I'm not ready to go back to working for somebody else."