Standard Pacific's foundation is built on single-family homes. Active in Arizona, California, the Carolinas, Colorado, Florida, Nevada, and Texas, the company constructs homes that typically range in size from 1,500 sq. ft. to more than 3,500 sq. ft. and range in price from an average low of $190,000 in Nevada to nearly $520,000 in California. The company also builds townhomes and condominiums, and buys and develops tracts of land (both alone and through joint ventures). It offers home loans to its customers in all of its markets through subsidiary Standard Pacific Mortgage, and title services in Texas through SPH Title.
With many other homebuilders focusing on lower priced homes, including short-sells and foreclosures, in the wake of the mortgage crisis, Standard Pacific has taken a different tack, concentrating on luxury and move-up homes. It has also turned to belt-tightening by slashing inventories, reducing construction costs, and consolidating divisions that were located outside of its core geographic areas. California is its primary market, accounting for nearly 40% of its new home deliveries and more than 55% of homebuilding revenues. Standard Pacific wants to take advantage of the depressed real estate market to acquire land for future developments in areas with high growth potential, particularly in California.
Standard Pacific delivered more than 2,500 new homes in 2011, nearly 70% fewer than as recently as 2007. As new home deliveries continue to dwindle, the company is focusing on profitability rather than sales (which have been in decline as well). It has been in the red since the beginning of the credit crunch, but its results have been not nearly as bad as in 2008, when it suffered more than $1 billion in losses. The company reported a net loss of $16.4 million in 2011 (more or less the same as 2009 and 2010) as the housing market continued to sputter. There may be light at the end of the tunnel, however, as new home orders increased, and the company expects to convert most, if not all, of its new home backlog to sales.
Standard Pacific was founded in 1965 by Arthur Svendsen and Ronald Foell. MatlinPatterson, an investment firm led by David Matlin, who also holds a seat on Standard Pacific's board of directors, controls 49% of the company. – less