IBJNews

Builder, developer partner in turnaround firm

Back to TopCommentsE-mailPrintBookmark and Share

A veteran homebuilder and a local developer have partnered to create a turnaround firm for residential projects that stalled in the economic downturn.

Providence Homes was started earlier this year by Mitch Davis, 42, a former vice president of the now-defunct CP Morgan Homes; and Brian Mann, 44, managing partner of Mann Properties.
 

Mitch Davis, left, and Brian Mann aim to reposition residential projects that went awry when the housing market
                              crashed.Mitch Davis, left, and Brian Mann aim to reposition residential projects that went awry when the housing market crashed.

“We’re looking at things that weren’t positioned correctly for today’s market,” said Davis, who became acquainted with Mann when their two firms worked together on projects in Indiana and North Carolina.

The first two projects being revived under the Providence Homes banner are Waters Edge, a townhouse development on Geist Reservoir, and Princeton Woods, a townhouse project on 131st Street in Fishers.

Waters Edge, just south of 116th Street on Olio Road, was started seven years ago and was to accommodate 57 townhouses. Only 14 were built and 11 others started before the project stalled and landed with Bloomfield State Bank, which Providence Homes is working with to reposition it. Providence had the remaining property rezoned to allow for construction of 12 single-family homes that will sell for $300,000 to $600,000. Davis and Mann think there is demand for custom homes with water access in that price range.

Princeton Woods, a development started by Mann Properties, is the site of construction for the first time in three years. The Mann-owned project, which started in 2005, originally called for approximately 150 townhouses. Only about half of those were built. Providence Homes has lowered the price point and revised buyer options to get the project moving again. Some of the townhouses, which are being offered for prices starting just below $150,000, will be finished in the next month.

Mann said Providence Homes would like to find at least two more turnaround opportunities in the next six months to a year.

Abbe Hohmann, a senior vice president at Cassidy Turley, said Providence Homes’ strategy fits with what’s going on in the market today. “No one is developing a new green field site,” she said. Rather, investors are trying to find opportunities in developments that have already been started.

Providence Homes isn’t just trying to snag existing lots at a deep discount. The firm is open to projects that require repositioning from a product, price or design standpoint, a process that could include seeking new government approvals and retrofitting existing infrastructure.

Davis and Mann think their combination of residential and commercial experience might give them an advantage in going after properties that involve both types of development.

“A lot of approvals that happened over the last 10 years had both components,” said Davis.

Davis spent 10 years at CP Morgan reading the tea leaves to determine which new housing products made the most sense considering location, price point and consumer demand.

Mann’s firm has experience developing land for residential development, but also has background in various types of commercial projects. He got into the turnaround game two years ago, buying the two-building, 150,000-square-foot Georgetown Commerce Park in the 7300 block of Georgetown Road. Occupancy at the office/warehouse property has since risen from 50 percent to more than 80 percent, Mann said.

Providence Homes’ turnarounds to date have involved a fairly tight-knit group of investors, said Mann, who envisions that circle expanding as more opportunities come up.

In the long run, however, he hopes Providence Homes’ strategy will change.

“I hope the market stops presenting distressed projects that need help. We’ll see what happens with Providence Homes when that happens.”

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

ADVERTISEMENT