AMREP Corporation, through its subsidiaries, primarily engages in land development and homebuilding in the United States.
The company conducts a substantial portion of its business in Rio Rancho, New Mexico (‘Rio Rancho’) and certain adjoining areas of Sandoval County, New Mexico.
Segments
The company engages in two business segments: land development and homebuilding.
Land Development
As of April 30, 2024, the company owned approximately 17,000 acres in Sandoval County, New Mexico. The com...
AMREP Corporation, through its subsidiaries, primarily engages in land development and homebuilding in the United States.
The company conducts a substantial portion of its business in Rio Rancho, New Mexico (‘Rio Rancho’) and certain adjoining areas of Sandoval County, New Mexico.
Segments
The company engages in two business segments: land development and homebuilding.
Land Development
As of April 30, 2024, the company owned approximately 17,000 acres in Sandoval County, New Mexico. The company offers for sale both developed and undeveloped real property to national, regional and local homebuilders, commercial and industrial property developers and others. Activities conducted or arranged by the company include land and site planning, obtaining governmental and environmental approvals (‘entitlements’), installing utilities and storm drains, ensuring the availability of water service, building or improving roads necessary for land development and constructing community amenities. The company develops both residential lots and sites for commercial and industrial use as demand warrants. Engineering work is performed by both the company’s employees and outside firms, but development work is generally performed by outside contractors. The company also provides landscaping services primarily to homebuilders.
The company markets land for sale or lease both directly and through brokers. With respect to residential development, the company generally focuses its sales efforts on a limited number of homebuilders, with 100% of 2024 developed residential third-party land sale revenues having been made to three homebuilders. The number of new construction single-family residential starts in Rio Rancho by the company, the company’s customers and other builders was 1,007 in 2024.
The company opportunistically acquires land, focusing primarily in New Mexico, after completion of market research, soil tests, environmental studies and other engineering work, a review of zoning and other governmental requirements, discussions with homebuilders or other prospective end-users of the property and financial analysis of the project and estimated development costs.
Lomas Encantadas is located in the eastern section of Unit 20 in Rio Rancho. Hawk Site and Hawk Adjacent are located in the northern section of Unit 25 in Rio Rancho. Enchanted Hills/Commerce Center is located in the eastern section of Unit 20 in Rio Rancho. Papillon is located in the northern section of Unit 25 in Rio Rancho. Paseo Gateway is located in the southern section of Unit 20 in Rio Rancho. La Mirada is located in Albuquerque, New Mexico.
As of April 30, 2024, the company held undeveloped property in Sandoval County, New Mexico of approximately 16,000 acres in either high contiguous ownership areas or low contiguous ownership areas.
Mineral Rights: The company owns certain minerals and mineral rights in and under approximately 55,000 surface acres of land in Sandoval County, New Mexico.
Other Real Estate Interests: In 2024, the company sold its approximately 147-acre property in Brighton, Colorado.
Homebuilding
The company operates a homebuilder in New Mexico. The company offers a variety of home floor plans and elevations at different prices and with varying levels of options and amenities to meet the needs of homebuyers. The company focuses on selling single-family detached and attached homes. The company selects locations for homebuilding based on available land inventory and completion of a feasibility study. The company utilizes internal and external sales brokers for home sales. Model homes are generally used to showcase the company’s homes and their design features. The company provides built-to-order homes where construction of the homes does not begin until the customer signs the purchase agreement and speculative (‘spec’) homes for homebuyers who require a home within a short time frame. Sales contracts with homebuyers generally require payment of a deposit at the time of contract signing and sometimes additional deposits upon selection of certain options or upgrade features for their homes. Sales contracts also typically include a financing contingency that provides homebuyers with the right to cancel if they cannot obtain appropriate mortgage financing within a specified period.
The construction of homes is conducted under the supervision of the company’s on-site construction field managers.
History
AMREP Corporation was founded in 1961. The company was incorporated in 1987.