Lennar Homes
Veteran Builder Shares Secrets
by Morgan Benavidez
After 55 years in the building industry, Lennar Homes has certainly proven that it has staying power. Phoenix and Tucson Division President Alan Jones shares the company's unique and effective strategy for remaining successful even in the toughest markets.
Lennar Homes has a simple buying process with three basic components: Included amenities, customer satisfaction and product simplicity. "Our goal has been to make the home buying experience one of satisfaction," says Jones.
With homes ranging from the 120s to the mid-500s and 1,300 to 5,000 square feet, Lennar Homes does not try to appeal to just one segment of the market. And the company is still growing, having acquired three new communities in Phoenix and six new communities in Tucson within the last few months.
What You See is What You Get
Lennar Homes' philosophy for marketing homes relates to "everything included," meaning everything a buyer wants is included depending on location. By showing models that depict exactly what buyers will get in their home with the exception of a few minor upgrades, Lennar Homes creates a hassle-free home buying experience with no surprises. "It works well for a lot of people, those that don't want the hassle of trying to figure out if they want this or that," says Jones. "A lot of decisions are required of you in the home buying process."
The company divides its product offerings into three categories: bronze, silver and gold. Bronze is geared toward the first-time home buyer, silver toward the move-up buyer, and gold toward the second move-up buyer. The bronze product option includes oak cabinets, laminate countertops and black appliances, whereas the gold option includes upgraded cabinets, granite countertops and stainless steel appliances.
By employing this strategy, Lennar Homes consistently meets and exceeds its customers' expectations. "People know exactly what they're getting," says Jones. "There's no letdown of, 'That's not included and it costs how much?'"
Layton Lakes
One of Lennar Homes' crowning achievements is Layton Lakes, a unique community located in the southeast Valley. With its abundant amenities and sizable lots, this community draws a variety of buyers. Located two miles from the Loop 202 on Lindsay and Queen Creek, Layton Lakes spans 800 acres and currently has three active communities: Horizon, Signatures and Vision.
Residents can enjoy lighted tennis courts, tot lots, equestrian trails, lakes and streams, baseball and soccer fields, basketball courts, barbecue pits and much more. One of the community's greatest assets is its outdoor community center-a splash park that became unexpectedly popular among non-residents. "It's so nice we had to secure it," says Jones. "The residents of Chandler decided it must be a city park because it's right off Queen Creek Road."
Other features include an amphitheatre, rock climbing wall, catch-and-release lake, and sand volleyball. "It's probably the highest amenity level we've ever provided in any stand-alone community," says Jones.
Master Planned Communities
The majority of Lennar Homes' properties are master planned communities. "We really try to set ourselves apart from everyone else by having nice, master planned communities that allow us to have something more to offer from a lifestyle standpoint," says Jones.
Among Lennar's larger master planned communities is Stetson Valley, which the company purchased in partnership with Pulte Homes. Stetson Valley has four different product offerings and affords residents breathtaking mountain views.
Estates at Lone Mountain is another joint venture in the works with Pulte Homes. Built on 600-plus acres, this gated community contains less than 800 homes, providing a low density of 1.2 homes to the acre-more than 300 acres of open space. Not a single home site backs to another home, creating an ideal environment for buyers who covet their privacy.
In Surprise, you'll find Vistas at Asante, a community of approximately 2,000 acres. This community has an elementary school and 55-acre park, and boasts a dramatic entry complete with waterfalls and a bridge rising up 23 feet.
Efficiency is Key
Through the economic downturn, Lennar Homes made the decision to continue to build. By establishing trade partners and hiring the same subcontractors for different products within a given community, the company has streamlined its building process. "Our subcontractors become very familiar with our homes," says Jones. "They can build very quickly and efficiently, with no downtime."
Also, by encouraging its trade partners to be the sole suppliers in a master planned community that has several product offerings, Lennar Homes reaps the added benefit of lowered cost. "It gives [suppliers] tremendous efficiency, because they can work on several communities within one given location," says Jones.
By establishing specific standards for its suppliers, the company has been able to cut costs even further. "When we go to suppliers and say, 'You are going to provide granite in all 100 homes,' the price we get is much better than it would be if we were to say, 'The standard is laminate, but 20 percent will upgrade to granite,'" says Jones. "As a result, our cost has come down tremendously."
In addition to employing the same subcontractors and trade partners, Lennar Homes tries to keep its product offerings as simple as possible, without skipping on quality. "We step back and ask, 'What does someone really want and need in this home?' Then we provide it," Jones explains. "It might turn out to be 2,000 square feet instead of 2,400 square feet, but [it] still has everything [the customer] is looking for."
Through its intelligent marketing tactics and efficient building process, Lennar Homes has shown that it's prepared to prosper under any circumstances. "We've been in business 55 years and we're going to be in business a lot longer," says Jones. "We do stand behind our product. It would be important to me if I were buying a home to know the builder cared about the customer-and that's Lennar."
Morgan Benavidez is the Editor of Arizona HB magazine.
