Friday, January 23, 2009


Groundbreaking Alliance Matches Builders In Midst of Corporate Reorganization

Portland, OR. – Legend Homes and Pacific Lifestyle Homes announced plans today for the two builders to cooperate on several joint marketing efforts.

Both firms filed for Chapter 11 reorganization in 2008 and are in the midst of working through reorganization procedures. Each company reports positive progress with plans to emerge by the second quarter of 2009.

Several joint marketing initiatives are planned, including an initial joint sale of each company’s completed homes inventory.

“These are two of our industry’s leaders and I applaud their efforts. It shows how even the biggest players in one industry can work together to reach a common goal,” said Dave Nielsen, chief executive officer of the Home Builders Association of Metro Portland.

Legend Homes is one of the Portland metro area’s most enduring builders. Founded in 1965 by David Oringdulph, the company sold 1760 homes from 2004 through 2008.

Pacific Lifestyle Homes is headquartered in Vancouver, Washington. The company was founded in 1996 and is owned by Kevin Wann. From 2004 to 2007, the company built 971 homes, 86 of which were built in 2007.

Companies Plan Joint Sale That Will Include Over 100 Homes

Reorganization consultants for both builders have advised that current inventories of completed spec homes are too high. Experts recommend that both builders liquidate their inventories. One of the first marketing efforts will be a joint sale. Collectively, the sale will feature over 100 completed homes that represent each company’s 2008 inventory.

Pacific Lifestyle Homes will have 56 homes as part of the sale and Legend Homes will offer 48 homes. These homes are in neighborhoods across the metro area as far north as Woodland, Washington, and as far south as Corvallis, Oregon.

All homes included in the sale must be sold by March 31, 2009, for the companies to remain on target with their reorganization plans.

“As the market slowed and demand for new homes decreased, we were left with an oversupply of completed homes," said Jim Chapman, president of Legend Homes. Both expect strong results from the sale. “The homes are certainly priced to sell. Once we reduce overall inventory numbers, we will return to a very manageable operating position,” said Kevin Wann, chief executive officer of Pacific Lifestyle Homes.

The homes offered in the sale will range in size from 1214 square feet to 2917 square feet. All homes include the respective builder’s typical warranties and customer service. Potential buyers can make offers to purchase any of the homes from prices as low as $174,900.

The communities included in the sale are in Happy Valley, Hillsboro, Tualatin, Tigard, Wilsonville, and Clackamas in the Portland area; and Camas, Ridgefield, Vancouver, Washougal, and Woodland in Southwest Washington. Additionally, there are homes in North Albany, Corvallis, Lafayette, and Salem in the Willamette Valley.

Buyers interested in purchasing a home during the sale can view the available homes being liquidated at

Company Restructuring Moving Along For Both Firms

Both companies report positive movement toward emerging from Chapter 11 protections.

Legend Homes, who filed for its reorganization first, has found the process to be very positive. “It’s allowed us to restructure our capital position, as well as to review our entire operation. I think anytime that you do that, you will find better ways to operate,” said Chapman. Legend is expected to emerge from Chapter 11 protections during the second quarter of 2009.

The outlook at Pacific Lifestyle Homes is also up. “Our team has remained extremely positive. The reorganization was about restructuring our debts and overall capital picture. We finished 2008 with a very positive sales quarter,” said Wann. Pacific Lifestyle Homes is expected to lift Chapter 11 protections sometime in the third quarter of 2009 due to its later filing.

“Two thousand eight was a really tough year for many of our builders. Navigating the changing credit markets and requirements of the lending institutions were major challenges. This year, with institutions stabilizing and interest rates hitting a 50-year low, things should be looking up,” said Nielsen.

About The Sale: Over 100 homes built by Pacific Lifestyle Homes and Legend Homes are being liquidated. The homes represent the firms’ 2008 inventory of unsold, completed homes. All homes must be sold by March 31, 2008. Homes are offered on a first come, first served basis and will be removed from the liquidation once an offer has been accepted. Interested buyers can see the entire inventory at www.NewHomeSale.Org.

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