Hovnanian Enterprises

Last updated
Hovnanian Enterprises Inc.
Company typePublic
NYSE:  HOV (Class A)
Russell 2000 Component
Industry Construction
Founded1959; 61 years ago, 1967; 53 years ago
Headquarters Matawan, New Jersey, United States
Key people
 Kevork Hovnanian
(Founder)
Ara K. Hovnanian (Chairman President & CEO)
Lou Smith (COO)
J. Larry Sorsby (CFO & Executive VP)
Products Homes
Financial Services
RevenueIncrease2.svg US$ 1.991 billion (2018) [1]
Increase2.svg US$ 8.15 million (2018) [1]
Increase2.svg US$ 4.52 million (2018) [1]
Total assets Increase2.svg US$ 1.662 billion (2018) [1]
Total equity Increase2.svg US$ -453.50 million (2018) [1]
Number of employees
1,851 (October 2018) [1]
Website www.khov.com

Hovnanian Enterprises, Inc. is an American real estate company which is involved in every aspect of marketing homes, including design, construction and sales. The company works with individual detached housing as well as higher-occupancy dwellings, including townhouses, condominiums and retirement homes.

Contents

Company operations

Hovnanian Enterprises, Inc. has delivered in excess of 336,000 houses since incorporation including 5,831 homes in fiscal 2018, with base prices ranging from $144,000 to $2,252,000 and averaging about $393,000. It operates in Arizona, California, Delaware, Florida, Georgia, Illinois, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia. [2] Members of the Hovnanian family, including Ara K. Hovnanian, have voting control more than 50% of the votes as of January 29, 2018 equivalent to a stake worth $178 million in 2015. [3]

The company relocated its corporate headquarters to a new building on the banks of the Navesink River in Red Bank, New Jersey, in 2006. [4]

In 2018 the corporate headquarters was relocated to Matawan, New Jersey. [5] Also in 2018, Hovnanian moved to default on debts in a manufactured default deal with the Blackstone Group which would benefit through credit default swaps, in exchange for a sweetheart loan from Blackstone. [6] In late May 2018, Blackstone abandoned the effort due to an admonishment from U.S. regulators. [7] [8]

History

In 1959, Kevork Hovnanian, an ethnic Armenian originally from Iraq, and his three brothers, Hirair Hovnanian, Jirair Hovnanian and Vahak Hovananian, each contributed $1,000, in addition to $20,000 which they borrowed, to found Hovnanian Enterprises, Inc. in a trailer in Toms River, New Jersey. [9]

Hovnanian and his company earned a reputation to selling low cost condos and townhouses, many to first time young homeowners and families. [9] A typical two-bedroom, two bathroom Hovnanian home built in the early 1980s cost approximately $30,000 because Hovnanian eliminated amenities such as communal swimming pools, which other builders used to attract potential buyers. [9] In a New York Times interview in 1983, Hovnanian explained his reasoning for marketing low cost homes in developments without community amenities, "There are limited recreation facilities going in because people have little time for socialization." [9]

In 1964 Jirair Hovnanian split off from his brothers' company and founded his own construction business, J.S. Hovnanian & Sons, of Mount Laurel Township, New Jersey. [10] Hirair and Vahak also left the company by 1969 to found their own enterprises. [9]

Hovnanian Enterprises had built and sold more than 30,000 homes and condos by 1989. [9] An additional 200,000 residences were sold between 1989 and 2009, as the company expanded its construction to include luxury homes, mid-priced homes and retirement communities. [9] It remains one of the United States' largest builders of "active adult homes", which are sold under the name of Four Seasons communities. [4]

Kevork Hovnanian stepped down as president of Hovnanian Enterprises in 1989, and was succeeded by his son, Ara K. Hovnanian. [9] He remained chief executive until his retirement in 1997, and was also replaced as CEO by Ara Hovnanian. [9] However, he remained the chairman of the company's board of directors until his death in 2009. [9]

Quality

Hovnanian has been the subject of customer complaints. In a few cases, there have been legitimate construction problems in some Hovnanian houses. For example, in 2005, Hovnanian acknowledged problems in a development in New Jersey after nearly three dozen disgruntled homeowners turned to elected officials when their complaints were ignored. [11]

K. Hovnanian the home builder and the mortgage company are no strangers to controversy. In 2008, the home builder was involved in a class action lawsuit where the plaintiffs alleged their subdivision was built near an old bombing range. The company settled the lawsuit in 2011 for a reported $1.2 million. [12]

The mortgage company was involved in a class action lawsuit filed in 2007 alleging violations of the Real Estate Settlement Procedures Act (RESPA) for removing incentives from home buyers if they opted to use another title insurance provider rather than the Hovnanian-affiliated title insurance company. [12]

Charity

Related Research Articles

drugstore.com was an internet retailer in health and beauty care products. Its web operations were launched on February 24, 1999, and shut down on September 30, 2016 after being acquired by Walgreens in March 2011 for $409 million.

Hovnanian is an Armenian surname.

The Ryland Group, Inc. was a company engaged in home construction based in Westlake Village, California. In 2015, it was the 5th largest homebuilder in the United States. In October 2015, the company merged with Standard Pacific Homes to form CalAtlantic Homes.

<span class="mw-page-title-main">KB Home</span> American Home Builder

KB Home is a homebuilding company based in the United States, founded in 1957 as Kaufman & Broad in Detroit, Michigan. It was the first company to be traded on the NYSE as a home builder. Its headquarters are in Los Angeles, California.

Toll Brothers is a company which designs, builds, markets, sells, and arranges financing for residential and commercial properties in the United States. In 2020, the company was the fifth largest home builder in the United States, based on homebuilding revenue. The company is ranked 411th on the Fortune 500.

<span class="mw-page-title-main">Lennar</span> American home construction and real estate company

Lennar Corporation is a home construction company based in the Waterford District, an unincorporated area of Miami-Dade County, Florida. As of 2023, the company was the second-largest home construction company in the United States based on the number of homes sold. In 2023, the company was ranked 119th on the Fortune 500.

<span class="mw-page-title-main">D. R. Horton</span> U.S. homebuilding company

D.R. Horton, Inc. is an American home construction company incorporated in Delaware and headquartered in Arlington, Texas. Since 2002, the company has been the largest homebuilder by volume in the United States. The company ranked number 194 on the 2019 Fortune 500 list of the largest United States corporations by revenue. The company operates in 90 markets in 29 states.

CalAtlantic Group, Inc. was a home construction company based in Arlington, Virginia. In 2018, it was the 4th largest homebuilder in the United States by number of homes closed. It was formed by the October 2015 merger of Standard Pacific Homes and Ryland Homes. In February 2018, the company was acquired by Lennar.

American Home Mortgage Investment Corporation was the 10th largest retail mortgage lender in the United States and was structured as a real estate investment trust (REIT).

Beazer Homes USA, Inc. is a home construction company based in Atlanta, Georgia. In 2016, the company was the 11th largest home builder in the United States based on the number of homes closed. The company operates in 13 states.

Jirair S. Hovnanian was an American home builder based in New Jersey. Hovnanian's business developed and built over 6,000 houses throughout South Jersey.

Kevork S. Hovnanian was an Armenian-American businessman and home builder, who founded Hovnanian Enterprises in 1959. He remained the president and chief executive officer of Hovnanian Enterprises until his retirement in 1997. Despite some financial difficulties due to the 2008-2009 recession and financial crisis, Hovnanian Enterprises was the sixth largest American homebuilder and the largest homebuilder in New Jersey, as of September 2009.

Blackstone Credit, formerly known as GSO Capital Partners (GSO) is an American hedge fund and the credit investment arm of The Blackstone Group. Blackstone Credit is one of the largest credit-oriented alternative asset managers in the world and a major participant in the leveraged finance marketplace. The firm invests across a variety of credit oriented strategies and products including collateralized loan obligation vehicles investing in secured loans, hedge funds focused on special situations investments, mezzanine debt funds and private equity funds focused on rescue financing.

Lumen Technologies, Inc. is an American telecommunications company headquartered in Monroe, Louisiana, that offers communications, network services, security, cloud solutions, voice, and managed services. The company is a member of the Fortune 500 and part of the S&P 500 index since 1999.

<span class="mw-page-title-main">LGI Homes</span>

LGI Homes is an American construction company that is known for building homes and housing developments in the southwestern and southeastern United States. The company was founded in 2003 and is based in The Woodlands, Texas. It went public on NASDAQ in 2013

Tri Pointe Homes, Inc. is a home construction company headquartered in Incline Village, Nevada. It also offers financing and insurance services to homebuyers. It operates in Arizona, California, Nevada, Washington, Colorado, Texas, the District of Columbia, Maryland, North Carolina, South Carolina, and Virginia. The company is the 18th largest home construction company in the United States based on the number of homes closed.

Invitation Homes Inc. is a public company traded on the New York Stock Exchange. It is headquartered in the Comerica Bank Tower in Dallas, Texas. Dallas B. Tanner serves as chief executive officer. As of 2017, the company was reportedly the largest owner of single-family rental homes in the United States. As of December 2022, the company owned about 83,000 rental homes in 16 markets.

<span class="mw-page-title-main">K. Hovnanian Children's Hospital</span> Hospital in New Jersey, United States

The K. Hovnanian Children's Hospital (KHCH) at Jersey Shore University Medical Center is a pediatric acute care hospital located in Neptune Township, New Jersey. The hospital has 88 beds and provides comprehensive pediatric specialties and subspecialties to infants, children, teens, and young adults aged 0–21 throughout Coastal New Jersey. It is affiliated with both the Hackensack Meridian School of Medicine at Seton Hall University and Robert Wood Johnson Medical School, and is a member of Hackensack Meridian Health. KHCH features the only pediatric trauma center in the region, and 1 of 3 in the state. KHCH also partners with Ocean Medical Center, Riverview Medical Center, Southern Ocean Medical Center, and Bayshore Medical Center to provide pediatric care to the entire surrounding region of Hackensack Meridian Health hospitals.

<span class="mw-page-title-main">Ocean Medical Center</span> Hospital in New Jersey, U.S.

Ocean University Medical Center (OUMC), formerly Ocean Medical Center, is a 318-bed non-profit, short-term acute care teaching hospital located in Brick Township, Ocean County, New Jersey, providing tertiary and healthcare needs for the northern Jersey Shore and Central Jersey.

References

  1. 1 2 3 4 5 6 "Hovnanian Enterprises Inc 2018 Annual Report - Form 10-K - October 31, 2018". secdatabase.com. Retrieved 2018-10-31.
  2. ↑ "Hovnanian Enterprises Inc 2018 Annual Report - Form 10-K - October 31, 2018". secdatabase.com. Retrieved 2018-10-31.
  3. ↑ "Hovnanian Enterprises Inc 2018 Annual Report - Proxy - 2018-01-22". secdatabase.com. Retrieved 2018-01-22.
  4. 1 2 Willis, David P. (2009-09-24). "Homebuilder leaves legacy of philanthropy". Asbury Park Press . Archived from the original on 2013-01-17.
  5. ↑ Pizzutillo, Rich (2017-09-07). "Homebuilder Hovnanian is moving from Red Bank to Matawan". ROI-NJ. Retrieved 2021-03-24.
  6. ↑ Carruzzo, Fabien; Zide, Stephen D.; King, Daniel (April 10, 2018). Unconventional CDS Credit Events: Hovnanian Enterprises. Kramer Levin Naftalis & Frankel (Technical report). Retrieved 4 March 2021.
  7. ↑ Scurria, Andrew (30 May 2018). "Blackstone Stands Down on Hovnanian Swaps Wager". Wall Street Journal. Retrieved 4 March 2021.
  8. ↑ Rubin, Gabriel T. (5 March 2019). "Wall Street to Tamp Down on Default Insurance Bets". Wall Street Journal . Retrieved 4 March 2021.
  9. 1 2 3 4 5 6 7 8 9 10 Meier, Barry (2009-09-25). "Kevork S. Hovnanian, Construction Company Founder, Dies at 86". The New York Times . Retrieved 2009-10-19.
  10. ↑ Sims, Gayle Nonan (2007-08-15). "J.S. Hovnanian, New Jersey builder, dies". The Philadelphia Inquirer . Retrieved 2007-09-16.[ dead link ]
  11. ↑ "N.J.: State Report Details Homebuilding Flaws". Daily Real Estate News, Realtor Magazine Online. March 23, 2005.
  12. 1 2 "K. Hovnanian American Mortgage Review•The Mortgage Insider". Archived from the original on 2010-12-21.
  13. ↑ "Kevork Hovnanian - armeniapedia.org". www.armeniapedia.org. Retrieved 2020-01-06.
  14. ↑ "Kevork Hovnanian, founder of Red Bank real estate firm, dies at 86". nj. 2009-09-26. Retrieved 2020-01-06.
  15. ↑ "Ocean Medical Center in New Jersey Breaks Ground on $85M ED Expansion". www.beckershospitalreview.com. 27 April 2012. Retrieved 2020-04-18.
  16. ↑ Breanne McCarthy, "Ocean Medical Center takes on $82 million expansion project", The Ocean Star (March 1, 2013), p. 12.


This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.