UDC Homes
UDC Homes was an American homebuilder that operated from 1968 to 1998. The company, founded as the Universal Development Company in Chicago in 1968, became an active homebuilder in the Southwest and Southeast. The firm changed its name to UDC Homes in 1986; the next year, it completed a move of its corporate headquarters to Tempe, Arizona, a suburb of Phoenix. UDC was a highly productive builder, the ninth-largest in the U.S. by 1992; it was the second-largest in Phoenix, a market that represented most of its revenues, and the third-largest in Charlotte, North Carolina. Its homes largely targeted the "move-up" market.
The company converted to a corporation in 1992, but a complicated three-tier share structure led to indebtedness as dividends paid to prime preferred stockholders further drained its finances. The firm filed a
History
UDC was founded by Gary Rosenberg in Chicago in 1968
UDC Development renamed itself UDC Homes in 1986; the name change coincided with a reorganization as a limited partnership,[9] ending four years on the public markets,[1] and the relocation of its operational headquarters from Chicago to Tempe, Arizona,[10][1] which was completed in 1987.[11] In the late 1980s, UDC established a reputation in the Phoenix high-end "move-up" market for homes that backed onto golf courses, artificial lakes, and mountains.[12] It was the second-largest homebuilder in Phoenix in the early 1990s, with 1,654 permits in 1994 alone; that year, it was the ninth-largest homebuilder in the country.[13] Likewise, Phoenix represented more than half of UDC's revenue for 1993.[4] In Charlotte, it peaked at third in market share in 1992, with more than 300 housing permits issued, though it slid to fifth in 1994.[14]
UDC entered the Tucson, Arizona, market in 1994 with the purchase of land in the Rancho Vistoso development in Oro Valley.[15] This was its first new market since its 1987 entrances into Atlanta and Riverside, California.[16] Citing a more sluggish real estate submarket than expected, the company exited Tucson in 1997 to focus on higher-volume areas.[17]
In 1992, UDC Homes converted from a limited partnership to a public corporation so it could issue stock. After going public, UDC was saddled with issues, including $340 million in debt and softness in its Southeastern submarkets. Preferred units in the limited partnership were converted to prime preferred stock, with a high annual dividend, draining the company's profits and leading to payments it could not afford; UDC had to pay its prime preferred shareholders in stock instead of cash, which only increased the dividend requirement.
UDC exited bankruptcy in November as a subsidiary of DMB Property Ventures, LP, in a $108 million transaction.
References
- ^ a b c Reagor, Catherine (May 4, 1995). "UDC chairman to lose job in restructuring". Arizona Republic. Phoenix, Arizona. pp. E1, E2. Retrieved March 20, 2024 – via Newspapers.com.
- ^ a b Reagor, Catherine; Gilbertson, Dawn (May 28, 1995). "Financial structure leads to bankruptcy court: Debt buries UDC Homes". Arizona Republic. Phoenix, Arizona. pp. D1, D4. Retrieved March 20, 2024 – via Newspapers.com.
- ^ Hernandez, Mal (February 3, 1971). "$60 million town is planned near Mesa". Arizona Republic. Phoenix, Arizona. p. A-1. Retrieved March 20, 2024 – via Newspapers.com.
- ^ a b Doerfler, Susan (February 26, 1994). "Home builder has the right chemistry". Arizona Republic. Phoenix, Arizona. p. WV-4. Retrieved March 23, 2024 – via Newspapers.com.
- ^ "UDC Development Co. plans Rancho Bernardo homes". Evening Tribune. September 5, 1980. p. E-11.
- ^ "UDC-Universal report 36 percent increase in sales". The Californian. Temecula, California. August 9, 1991. p. C-6. Retrieved March 20, 2024 – via Newspapers.com.
- ^ Van Hecke, M.S. (April 2, 1987). "2 Charlotte Home Builders Team Up". The Charlotte Observer. Charlotte, North Carolina. p. 24A. Retrieved March 20, 2024 – via Newspapers.com.
- ^ "Arizona firm developing the Villages of Parkwalk". Fort Lauderdale News/Sun-Sentinel. Fort Lauderdale, Florida. July 30, 1983. p. Advertising 47. Retrieved March 20, 2024 – via Newspapers.com.
- ^ "UDC Development Co. Changes Its Name". The Los Angeles Times. Los Angeles, California. September 8, 1985. p. VIII:28. Retrieved March 20, 2024 – via Newspapers.com.
- ^ "UDC Homes names president". Arizona Republic. Phoenix, Arizona. October 18, 1985. p. H3. Retrieved March 20, 2024 – via Newspapers.com.
- ^ "UDC moving offices to Tempe: Decision proves 'our confidence' in Valley growth". Arizona Republic. Phoenix, Arizona. May 15, 1987. p. C1. Retrieved March 23, 2024 – via Newspapers.com.
- ^ "Homing In on Excellence: Aiming high, UDC targets 'move-ups,' builds reputation". Arizona Republic. Phoenix, Arizona. April 30, 1989. pp. S1, S7. Retrieved March 20, 2024 – via Newspapers.com.
- ^ Reagor, Catherine (May 1, 1995). "UDC scrambling to fix financial woes". Arizona Republic. Phoenix, Arizona. pp. 1A, 2A. Retrieved March 20, 2024 – via Newspapers.com.
- ^ Jamieson, Sean (December 2, 1994). "UDC Homes struggles with debt: Struggling builder to stay in Charlotte". The Charlotte Observer. Charlotte, North Carolina. pp. 1D, 6D. Retrieved March 20, 2024 – via Newspapers.com.
- ^ Heltsley, Ernie (February 19, 1994). "Rancho Vistoso to provide entry for top builder". Arizona Daily Star. Tucson, Arizona. p. 4B. Retrieved March 20, 2024 – via Newspapers.com.
- ^ Ray, Keith (May 16, 1994). "UDC here for the long haul, home builder says". Arizona Daily Star. Tucson, Arizona. p. 6D. Retrieved March 20, 2024 – via Newspapers.com.
- ^ Heltsley, Ernie (February 21, 1997). "Slower market forces UDC Homes to leave". Arizona Daily Star. Tucson, Arizona. p. 3B. Retrieved March 20, 2024 – via Newspapers.com.
- Gale A16433214.
- ^ Reagor, Catherine (May 2, 1995). "UDC plans to restructure debt: Home builder will infuse capital, sell Southeast operations". Arizona Republic. Phoenix, Arizona. pp. A1, A2. Retrieved March 20, 2024 – via Newspapers.com.
- ^ "UDC out of Chapter 11 with court-OK'd plan". Arizona Republic. Phoenix, Arizona. Bloomberg Business News. November 15, 1995. p. D2. Retrieved March 20, 2024 – via Newspapers.com.
- ^ a b Reagor, Catherine (July 11, 1998). "Shea Homes buys UDC: Merged firm state's biggest". Arizona Republic. Phoenix, Arizona. pp. A1, A20. Retrieved March 20, 2024 – via Newspapers.com.
- ^ "Shareholders of UDC Homes set to split $4 million". Arizona Daily Star. Tucson, Arizona. Capitol Media Services. October 25, 1998. p. 3D. Retrieved March 20, 2024 – via Newspapers.com.
- ^ Harris, Craig (January 24, 2001). "A. Andersen pays $755k in settlement". Arizona Republic. Phoenix, Arizona. pp. B1, B2. Retrieved March 20, 2024 – via Newspapers.com.
- ProQuest 211070544.
- ^ Reagor, Catherine (June 13, 1998). "2 firms interested in UDC". Arizona Republic. Phoenix, Arizona. pp. E1, E3. Retrieved March 20, 2024 – via Newspapers.com.
- ^ Reagor, Catherine (September 19, 1998). "Builder has big stake in Valley: Standard Pacific sets goal to sell 1,000 homes in year". Arizona Republic. Phoenix, Arizona. pp. E1, E3. Retrieved March 20, 2024 – via Newspapers.com.