IRVINE, CA – Recently invited to speak at
the ULI lecture series, “Leaders in Planned Communities, Residential Design
& Urban Infill”, Doug Bauer is Chairman and CEO of TRI Pointe Group. Part of an 8-week program co-hosted and
moderated by John Martin of Martin & Associates, speakers include some of
the most distinguished leaders in the homebuilding industry. Doug’s lecture emphasized that life and
business is about fostering relationships.
In 2009, Doug Bauer, Tom Mitchell and Mike Grubbs
shared a vision and concept for a new kind of homebuilding company – one driven
by the insight and agility of regional homebuilders, combined with the
resources, relationships and reputation of a national organization.
“We see the industry as a life-changing business,
designing smarter homes that inspire better lives,” said Doug. “A culture of innovation is at the heart of
the company. We started making money day
one as a fee builder, in 2013 we took the company public and in 2014 we
completed a $2.7 billion merger with Weyerhaeuser Real Estate Company (WREC),
creating a national builder operating under six brands.
Prior to forming TRI Pointe Homes, Doug was the
President and Chief Operating Officer for William Lyon Homes where he also
served as Chief Financial Officer and President of its Northern California
Division. “One of the biggest lessons I
learned from Bill Lyon is that company culture starts at the top and sets the
tone,” said Doug. “It’s about how you
treat people, being visible and accessible, delivering messages with intention and
disclosing those intentions. I take this
lesson to heart and continually aspire to provide team members with a great
place to work.”
“Interpersonal skills, being engaged and
approachable are critical components of any team,” Doug continued. “A couple of the things we do to foster
relationships include awarding honors regularly
to acknowledge outstanding contributions and performance, and also convene leadership
meetings that encourage the participation of spouses so everyone is on board. It’s also about how you treat customers,
trade partners and investors. I’ve found
the best way to communicate is to keep it personal, and I use written notes a
good deal of the time. We realize our
most important asset is not on the balance sheet, it’s our people.”
Another important relationship Doug talked about
was with Barry Sternlicht of Starwood Capital Group who became an investor in
2010, trusting in the knowledge and experience of the three partners of TRI
Pointe Homes with a $150 million capital investment.
The TRI Pointe Group (NYSE: TPH) includes six home building brands which
are each managed locally including TRI Pointe Homes, Quadrant Homes, Pardee Homes,
Maracay Homes, Trendmaker Homes and Winchester homes. The company is one of the
top 10 largest public homebuilders by equity market capitalization in the
Unites States.
“Homebuilding must be a local business to be
successful,” said Doug. “Consumers
resonate more easily with homebuilding brands that are local, being able to
trust in customer service and being guided through the home buying process with
the attention they deserve.”
Doug understands that the purchase of a new home
can be life changing for people and he thanks as many buyers as he can for
their business by a personal phone call.
“It is very important our buyers have a relationship with the seller,”
said Doug. “They need to be confident in
our ability to perform.”
Doug also shared lessons learned throughout the
years, having gained invaluable experience through multiple housing cycles.
“Financial discipline is critical to maintain a strong balance sheet and a
focus on cash flow is very important,” advised Doug. “It is also important to stay disciplined in
underwriting land acquisition with manageable community size. We keep everything under 400 lots with an
average of just 75 units, although Pardee Homes is an exception. Smart growth means not growing just for
growths sake.”
Where is the housing industry today? Doug believes we are in an elongated cycle
and sees moderation price appreciation. He
cited demand drivers for homebuilding as jobs and household formations, with supply
constraints including available land, entitlement, capital and labor. He sees huge demographic opportunities with
Millennials and Baby Boomers.
“According to research Millennials are looking
for more space, particularly outdoor space and a home that is personalized to
them, but are not comfortable with home buying and the process.” One of Doug’s goals
is to work toward becoming more engaged with these first time buyers.
For more information on the upcoming ULI Industry
Leaders programs, contact orangecounty@uli.org. The Urban Land Institute (www.uli.org) is a nonprofit education and
research institute supported by its members. Its mission is to provide
leadership in the responsible use of land and in creating and sustaining
thriving communities worldwide. Established in 1936, the ULI has more than
40,000 members worldwide representing all aspects of land use and development
disciplines.