Century Communities: Why Land is Sometimes the Most Important Element

Atlanta Real Estate Forum Radio

Alex Miller, director of land acquisition at Century Communities, joins host Carol Morgan for this week’s Atlanta Real Estate Forum Radio episode. In this podcast segment, Miller discusses land acquisition from a national builder’s perspective.

Miller attended Indiana University and graduated with a degree in secondary education. When he discovered that teaching wasn’t the best career choice for him, he went back to school, obtaining an MBA at Indiana Wesleyan University and a Master of Science with a focus on Finance from Georgia Southern University.

His first job in real estate was as a financial analyst at Stanley Martin Homes in Atlanta. He did underwritings for land acquisition, new deals and general corporate finance. After a couple of years, he moved to Century Communities and now serves as the face of land acquisition.

“Land acquisition, which is one of the reasons I love it, it’s kind of the heartbeat of the company,” said Miller. “I like to think of myself on the front lines out there, battling for land. Without land, you don’t have a home building company.”

The most important land acquisition goal is achieving the business plan through daily actions. Miller forecasts five years out, which means that he looks at many different projects at the same time. Whether it is a finished lot, a deal that is just zoned or raw land, he assesses each project individually to determine where it fits in the five-year plan.

“You structure where you deploy your capital and purchase these deals at the right time to meet those business plans in the future,” said Miller. “And it’s tricky. Right now, Century’s Atlanta division is working very aggressively to meet those goals.”

Where is Century Communities looking to build in Atlanta? Miller said the industry-rich I-75 corridor toward Cartersville and Emerson is being discussed. Century is also working to build in South Fulton locations like McDonough and Douglasville, but the rising costs of land in the area challenge the land acquisition team. The current golden Atlanta markets are Cherokee County, Dawson County and Forsyth County.

Choosing a location can be challenging, but Miller has criteria that clarify the decision. For example, when looking at raw land to develop into single-family home communities with two units per acre, he likes a minimum of 50 acres to work with. The number of acres is not as crucial when acquiring lots with zoning permits in hand or finished lots. Zoning is the risky aspect of land acquisition, so already-zoned lots are attractive to home builders like Century.

With interest rates at an all-time high, home builders must consider what is affordable now for buyers and what will still be affordable in three to five years. Other challenges can pop up along the way, including pond agreements, lift stations for sewers that don’t flow with gravity and rough topography. Miller and his land acquisition team constantly face new roadblocks on projects, but he enjoys the challenge.

“I’ll come home, and my wife, she’ll ask me how my day was.” said Miller. “I have literally experienced every single emotion that a human has in a day because of these deals, but that’s what makes it fun, too.”

As housing trends change, there is a shift to smaller properties across the Atlanta market. Miller said that people are not shying away from higher-density communities and homes under 2,000 square feet. However, in areas like north Forsyth County, the demographic is different and favors larger lots and luxury products. He emphasizes the importance of home builders knowing the area and knowing their buyers to maximize profit in an ever-changing market.

Tune in to the full interview above to learn about Century Communities, or visit www.CenturyCommunities.com.

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The Atlanta Real Estate Forum Radio “All About Real Estate” segment, presented by Denim Marketing, highlights the movers and shakers in the Atlanta real estate industry – the home builders, developers, Realtors and suppliers working to provide the American dream for Atlantans. For more information on how you can be featured as a guest, contact Denim Marketing at 770-383-3360 or fill out the Atlanta Real Estate Forum contact form. Subscribe to the Atlanta Real Estate Forum Radio podcast on iTunes, and if you like this week’s show, be sure to rate it.