Current news for this company:
McStain Neighborhoods - Denver-area "sustainable communities" builder
Yet another builder has run down the financial clock as the extended housing downturn refuses to let up. McStain has filed for Chapter 11, with more than $47 million in assets and $44 million in liabilities. Says CEO Tom Hoyt:
“We are totally constrained by this banking mess,” he said. “We feel like the customer side has bottomed out. But I think we are going to be totally constrained by construction lending in the next year or more.”
A little bit about the company's history comes from the above story:
McStain was founded by Tom and Caroline Hoyt, husband-and-wife architects who got into home building in the 1960s by buying a custom Denver-area builder. The company began operating under the McStain name in the 1970s. Over the years, it has built more than 8,000 homes
The company had survived the 1980s housing recession, but is one of many which has capsized in the current economic tsunami.
According to eBuild.com, McStain was building about 400 homes a year at peak, comfortably making our 250 unit "major" cutoff..
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Important: This company is on our list of builder operations that have "imploded" (see also ailing lenders). This is a somewhat subjective call, and does not necessarily mean total shutdown or bankruptcy. It can also mean steep and rapid declines in enterprise value; or abnormal "bail-out" by corporate parents or peers in order to continue to operate. The builders may be residential or commercial.