Toll Brothers, one of the nation’s largest homebuilders, is expanding to Colorado Springs with the purchase of longtime local builder Keller Homes.
The arrival of Toll Brothers, which builds homes in Denver and Fort Collins, will bring another national builder to the Springs at a time when the demand for housing in the Pikes Peak region has remained strong even in the wake of the COVID-19 pandemic.
Keller Homes has been among the better-known builders in the Springs and has constructed more than 4,000 homes since it was founded in 1983 by Dave Keller, who has owned the company with his wife, Pam.
The company has built a variety of housing styles over the years. It currently constructs first-time, move-up and move-down homes with prices from the mid-$400,000s to more than $700,000.
The Kellers, however, were looking for an “exit strategy” after 37 years in business, and several months ago sought out a buyer for their company, Dave Keller said. Toll Brothers’ brand, culture and reputation were appealing, along with the company’s financial and employee resources, he said.
The publicly owned Toll Brothers, based in Pennsylvania and founded in 1967, constructs homes in 24 states and bills itself as “America’s luxury home builder,” according to its website.
“They’re going to bring many more resources that, as a smaller company, we did not have, including obviously the financial wherewithal, products and just lots of talent from across the country,” Dave Keller said.
Mark Bailey, Toll Brothers’ Colorado division president, said in a news release that Keller Homes “has a great reputation” after nearly four decades in the Springs.
“Their team will enable us to continue to expand our operations in Colorado, which is one of Toll Brothers’ strongest markets,” Bailey said.
Keller declined to disclose financial terms of Toll Brothers’ purchase, and Toll Brothers didn’t respond to questions seeking additional information about the deal beyond its news release.
Under terms of the purchase, the Kellers now are Toll Brothers employees and Dave Keller said he will serve as the company’s Colorado Springs division president. That employment agreement lasts for two years, he said.
Keller Homes has a backlog of 91 homes in various stages of purchase, planning and construction, with an average price of $520,000 and a value of $47 million, Keller said. Toll Brothers also has acquired rights to buy more than 300 lots Keller controls in the Springs. Keller currently builds in the northeast side Cordera, Wolf Ranch and Cubre Vista communities.
For the short-term, homebuyers likely will see little outward change in Keller Homes.
The company will keep its name and logo on its north-side Springs office, while it also will retain its employees, vendors, floor plans and designs, Keller said.
The sale was the “best possible way to transition the business from original owners, founders, to the next phase, which combines continuity for customers, vendors and our employees,” he said.
“We have people here who have been with us for 25 years,” Keller said. “We have vendors who’ve worked with us since the very beginning of Keller Homes 37 years ago. Those are people we care about, so, realizing that we wouldn’t be here forever, we wanted to provide continuity there. Some of those companies have second-generation people running them today. ... They depend upon Keller Homes for their work and their livings. That meant a lot to us.”