Current news for this company:
Gunstra Builders - Indiana home builder
Lafayette, Indiana-based homebuilder Gunstra Builders (website: gunstrabuilders.com), a company founded in 1976 by Bruce Gunstra, appears to be in dire straits. We first received tips that Gunstra might be "shutting down" on October 15th. We posted this rumor on our forums requesting confirmation. Soon, at least three forum members posted that they had heard Gunstra was either going bankrupt or that their "doors were closed". Per one post:
I manage a property for someone that built a Gunstra condo in Plainfield. They let me know a few days ago that Gunstra is bankrupt and has shut it's doors. I called the main office # I have for them, it is "temporarily disconnected" Their main office is about 5 minutes from my house, I am going to stop by tomorrow and see.
Another Gunstra homeowner on our forums heard similar news that Gunstra was "going bankrupt". On October 30th, IndyStar reported that Gunstra has shut down their sales offices and disconnected certain phone lines:
With such bad news piling up, unanswered phone calls and spreading speculation of shutdown and/or bankruptcy, we can only wonder if Gunstra is only a short breath away from implosion. Gunstra Builders had some 60 - 76 employees and was involved in a number of single family home and townhome projects. If anyone can provide additional data as to their ongoing status or their peak size (i.e. approximate closings per year at peak), please comment below or email us.
Another tipster informed us that Gunstra has (had?) 75 employees or so. and that he/she thought they were done "awhile back".I manage a property for someone that built a Gunstra condo in Plainfield. They let me know a few days ago that Gunstra is bankrupt and has shut it's doors. I called the main office # I have for them, it is "temporarily disconnected" Their main office is about 5 minutes from my house, I am going to stop by tomorrow and see. They have been around Indianapolis for probably 20-25 years. Their biggest issue was they had no clue how to market, and with the downturn it killed them. I went to them several times over the past few years letting them know I work with investors on home purchases in Indianapolis(probably sell 50 a year to investors). They never got back with me, so I went back to Beazer who always will work with me and get me good pricing for investors.. Permalink
AnimalMother at 17:16 2008-10-23 said:I own a new Gunstra home here in West Lafayette, IN. I have definitely heard they are going bankrupt. I have spoken with some of their staff and they mentioned going from approx 60 employees down to about 14. I think it is even less now as I have heard of some of the employees moving to some of the related companies that Gunstra owns/started. The houses that are under construction have mechanic's liens on them - one was sent to me by mistake. We have spoken with contractors going around the neighborhoods getting addresses so they can file liens with the county. Gunstra did shut their Indy operations and moved everything to Lafayette, IN. It is unfortunate to say, but Bruce Gunstra and his management had a bad attitude over the last year, so I'm not surprised they saw the writing on the wall. I'm sure at this point they are going to try to protect their assets by moving crap around to all of their other operations. They own a title company, several homeowner's associations, property management, etc. They were basically milking every angle they could which probably resulted in their failure. That and their overall poor attitude and complete lack of customer service. The Dude Permalink
AnimalMother at 16:34 2008-10-27 said:was one of them Lori Crampton? What about Tracy Shepherd? Lori does/did sales and Tracy does/did warranty work. Are they allowed to raise the HOA dues like that? What documentation do you have that might state otherwise? Plenty of people in our neighborhood didn't pay HOA dues this year because the HOA doesn't do anything except pay the electricity on the street lights (weeds in common areas, grass doesn't get cut, etc). I heard that Gunstra owns the management company, I think it is called "Management Advantage" or something like that. I would be wary. I heard out of 14 units down where you live, something like 11 were in foreclosure.... Just upping the dues arbitrarily doesn't make sense. The ones that are rented should be paid by Gunstra. The Dude Permalink
AnimalMother at 00:26 2008-10-31 said:abides, be thankful the property in Indiana isn't very expensive so hopefully you won't have too much to lose. Who knows what will happen - we are also disappointed because we have a quaint neighborhood here in West Lafayette and Gunstra pissed it away and really screwed up the potential here. I am hopeful for the next couple of years to level out, at least we have Purdue and other strong organizations up here keeping some value in our property. The Dude Permalink
There are more posts. Click here to view the whole thread
Note: Comments may take a few minutes to show up on this page. If you go to the forum thread, however, you can see them immediately.
Important: Ailing Builders haven't shut down, but they've suffered significant valuation declines, temporarily halted redemptions, or faced other major business hurdles. Builders on watch may not even have unusual declines relative to peers, but may be posted if it is felt there may be risk of developing a more serious condition in the near future.