Bellevue, WA (April 23, 2012) – Quadrant Homes announced today the release of its first Sustainability Report, creating a roadmap for a sustainable future built around five key principles: LivingSmart®, Building Community, Reducing our Footprint, Operating Safely and having a Culture of Compassion.
Long a regional leader in sustainable building practices and responsible development, Quadrant Homes has made it the highest priority to implement sustainable operating procedures and enable homeowners to live more sustainably in Quadrant communities and Quadrant-built homes.
“Producing this report outlines our desire to demonstrate and share in the responsibility we have as stewards of a sustainable future,” said Quadrant Homes’ President Ken Krivanec. “As a company, we are and have been committed to operating beyond compliance, and continue to be a leader in sustainable solutions for our planet.”
The five principles outlined in the report include:
LivingSmart®: The LivingSmart® program is a comprehensive approach to responsible development, high-performing homes and cost savings for homeowners. LivingSmart® homes are designed based on four core components: HealthSmart™, EnergySmart™, EarthSmart™ and WaterSmart™. In 2011 alone, Quadrant-built ENERGY STAR homes, represented the elimination of the emissions from 114.17 vehicles; the saving of 690,612 lbs of coal; the planting of 188.73 acres of trees; and the savings to homeowners of $104,151 on their utility bills.
Building Community: Quadrant is invested in preserving open spaces for parks and neighborhood gathering areas, educating homebuyers about how to most efficiently operate their homes and fostering dialogue on sustainability within communities, with homebuyers and with associates.
Reducing our Footprint: Quadrant is committed to reducing its environmental footprint in the homes it builds and in the organization at large, and to partnering with organizations that share that vision. For example, the company was the first Washington builder to offer electric vehicle charging stations in its homes.
Operating Safely: Quadrant believes in providing a safe and healthy work environment for employees, contractors and customers. Quadrant was the first Washington residential homebuilder to receive STAR status from the Voluntary Protection Plan and the Washington State Department of Labor and Industry.
Culture of Compassion: Whether restoring natural habitats, providing funding to community organizations, or donating to those in need, at the very heart of Quadrant is the ideal of operating within the greater Puget Sound family.
Bellevue, Wash. (April 26, 2012) – After nearly two decades of building, Quadrant Homes completed its award winning master plan community of Northwest Landing in DuPont. Quadrant designed and built the 3,000 acre master planned community that supports nearly 4,000 multi- and single-family custom homes, the renowned Home Course 18-hole golf course, over 1,000 acres of parks, trails and open spaces, the thriving DuPont Station retail area and parcels for future business park. Alone, Quadrant Homes built over 1,700 new homes in Northwest Landing, with the sale of the last home occurring earlier this year. Northwest Landing is one of three very successful master planned communities that Quadrant Homes has developed in the Puget Sound region.
“We are proud of our work in DuPont, and see Northwest Landing as a wonderful example of what we strive to create with every community we build,” said Mark Gray, Chief Operating Officer for Quadrant Homes. “When we began Northwest Landing in 1994, DuPont’s population was in the hundreds. Today, Northwest Landing is at the heart of this thriving community and the place where thousands of residents raise their families.”
For many years, Northwest Landing became the primary residence for Intel employees and those stationed at Joint Base Lewis-McChord. Due to the community’s close proximity to JBLM and Quadrant’s reputation for servicing military families, Northwest Landing is the largest off-base military community in the Pacific Northwest.
“Quadrant has always felt a deep respect and commitment to those who protect and serve our country,” said Gray. “Our understanding of the military home buyer and our ability to create a sense of community allowed us to provide the perfect place for hundreds of families to call home.”
Bellevue, WA (March 20, 2012) – Quadrant Homes announced strong sales activity across its 16 Puget Sound communities, representing an almost 50 percent increase in the first two months of the year. The Northwest homebuilder sees the positive results as validation from the region for its innovative Built Your Way approach to homebuilding which allows customers home customization and personalization that is unmatched in the industry. Also creating momentum for Quadrant is the newly launched program, Smart Move Advantage. This program offers qualified homebuyers who purchase a new Quadrant home a three-year lease guarantee on their existing home. For homebuyers, that means a guaranteed rent payment every month, allowing people the freedom to buy the home of their dreams now and sell later.
“We continue to see an increase in sales activity as our new brand evolves,” Quadrant Homes President Ken Krivanec said. “We want homebuyers to know that Quadrant is with them every step of the way during their new home construction. And with 4 out of 5 homebuyers taking advantage of Built Your Way customizations, and a healthy response to leveraging the Smart Move Advantage program, clearly we have struck a chord.”
One year ago, driven by intense consumer research, Quadrant Homes unveiled an entirely new take on the home-buying process. The Built Your Way approach to home buying brought a level of customization and personalization never before offered by a large-scale Northwest builder.
Setbacks in the housing market created a challenging environment in recent years, but the research showed that as the market changed, so have the expectations and needs of today’s homebuyer. Quadrant Homes listened to the research and feedback and revised much of its product line, with new exterior looks and enhanced interior designs. But most importantly, Quadrant Homes is factoring in the behavioral changes and expectations of how buyers want to personalize their homes far beyond the level of features and appliances.
“For over 40 years, we have continually evolved with the needs and buying behaviors of the Northwest homebuyer,” said Krivanec. “Built Your Way gives the customer a home built precisely to their order, with a level of customer service that no other builder can match. What’s more, we have such a high track record of performing on our promises that 99 percent of our customers are willing to refer us to their friends and family.”
Quadrant homebuyers really get the benefit of the entire Quadrant Assurance package, which includes: Smart Move Advantage (guaranteed rent of their current for up to three years); Mortgage Payment Protection (a 24-month mortgage payment protection insurance policy in the event of a job loss); and Homebuyer Solutions (a free personal credit analysis and consultation.) This is combined with the Built Your Way promise that, if a homeowner isn’t completely satisfied with their home on completion, they don’t have to buy it.
Bellevue, WA (March 15, 2012) – The custom new home experience has come to Renton’s Fairwood neighborhood with the opening of Quadrant Homes’ newest community, Westmont Vista. Quadrant homebuyers will experience the unparalleled customer service and personalization of Quadrant’s “Built Your Way” philosophy as they choose from 34 homesites in this secluded, tree-lined community.
“We believe discerning homebuyers will embrace the opportunities provided by our approach to customization and personalization,” said Mark Gray, Executive Vice President and Chief Operating Officer of Quadrant Homes. “We’re excited to return to this neighborhood, where we’ve had a history dating back to the 1970s when we planned and built the master-planned community of Fairwood.” During the grand opening held late last week, King County Councilman Reagan Dunn attended the event to thank Quadrant for their continued investment in Renton, and highlighted the positive economic impact that the new community will have.
Homes in Westmont Vista will feature Quadrant’s striking new customizable floor plans, with nine-foot ceilings, stainless steel appliances, white painted millwork throughout, and durable fiber cement siding with rich painted color schemes. Quadrant’s new Built Your Way Touchscreens allow Quadrant homebuyers the opportunity to interact and make changes to their floorplan on a 60” display in the community sales office. This unique technology gives homebuyers a chance to visualize their changes without spending a dime. This coupled with the unparalleled choices available at the world-class Design Studio make their custom-built home one of a kind.
Located minutes from the Fairwood Golf and Country Club, Westmont Vista offers easy access to SR 167 and SR 169 and is just 15 miles from Bellevue. The community is conveniently located near area shopping and dining at Fairwood Shopping Center, along with two grocery stores, the Fairwood branch of the King County library, banks, gyms, boutique shops and spa services. Surrounded by Soos Creek Regional Trail, Westmont Vista is a quarter-mile walk from Carriage Crest Elementary and has two parks on the property with newly built play structures.
Homebuyers can also take advantage of the innovative Quadrant Assurance program, which includes: Smart Move Advantage (guaranteed rent of their current for up to three years); Mortgage Payment Protection (a 24-month mortgage payment protection insurance policy in the event of a job loss); and Homebuyer Solutions (a free personal credit analysis and consultation.) This is combined with the Built Your Way promise that, if a homeowner isn’t completely satisfied with their home on completion, they don’t have to buy it.
Real estate: Foreclosures weigh on rebound Chris Gunther uses an excavator to prepare a driveway for a concrete pour at Wynstone, Quadrant Home’s new development in Federal Way. The company has made several changes to help drum up business, including possibly moving into the multifamily-home business. Economist and forecaster Dick Conway, who has spent three decades tracking the national and local economies, doesn’t mince words when asked about the state of the nation.“The economy is just a mess, and some people say it’ll be a mess for another five years,” Conway said. “I tend to be a little more optimistic, but so much depends on politics.“That mess, unfortunately, is helping to hold back recovery here, and 2012 isn’t likely to be much better than 2011.The region’s tailwinds — surging employment at Boeing, a stable information-technology industry, a strong export sector — will run up against stiff headwinds: the wheezy housing market, Europe’s long-running debt crisis, slowing economies in Asia, and the prospect of continued political uncertainty and partisan stalemate at home. Washington and the Puget Sound region probably will continue to be a little better than the country as a whole. The state Economic and Revenue Forecast Council, for instance, projects both payroll employment and inflation-adjusted personal income in Washington will grow 1.2 percent next year, versus 1.1 percent for the nation as a whole.
But “a little better” may not be enough to make much of a difference in people’s lives — not the 286,100 Washingtonians who reported being out of work last month, the uncounted thousands more who are underemployed, or the nearly 63,000 who have dropped out of the labor force entirely over the past 2 ½ years.
“We need a catalyst to propel the economy into a virtuous growth cycle,” Conway said. “But it’s hard to find anything out there that’s going to jolt us out of this. It’s going to be a slow slog.”
Here’s a closer look at some of the key drivers of the Puget Sound-area’s economy, and the factors likely to shape their performance next year.
Exports
The export sector has been one of the few local bright spots, and that’s a good thing. As Conway said, “If we’re going to grow, we have to look for export markets, because the fastest-growing markets aren’t here — they’re outside our borders.”
Through the first nine months of 2011, Washington exports were running nearly 24 percent above the 2010 level. Transportation equipment — primarily airplanes, of course — is the state’s biggest export category: Through September, some $19.5 billion worth had been shipped overseas.
But the second-biggest export category may surprise urban Puget Sounders: agricultural products, worth nearly $8 billion in the first nine months of this year.
Anderson Hay & Grain of Ellensburg, one of the state’s top agricultural exporters, has barely noticed the recession. CEO Mark Anderson said demand for hay and straw has been stable in the company’s established markets, such as Japan and South Korea. Meanwhile, newer markets such as China and the United Arab Emirates are growing.
“There’s a pretty good commitment on (China’s) side to rural development in general and to a strong dairy industry and self-sufficiency in fresh milk,” Anderson said.
The third-generation, family-owned company has benefited from high prices for hay and other commodities, as well as from the generally weak dollar. China’s yuan, for example, has gone from about 6.6 to the dollar at the beginning of the year to 6.3 now, making U.S. goods cheaper for Chinese buyers.
Anderson said a sudden strengthening of the dollar or devaluation of his customers’ local currencies would hurt business. Beyond that, he said, the company’s biggest challenge from the recession has been higher freight costs: With fewer imports coming into the United States, fewer empty shipping containers are available to take Anderson’s products back overseas.
Eric Schinfeld, president of the Washington Council on International Trade, pointed to two trade-policy developments with special meaning for Washington. The new U.S.-South Korean free-trade agreement could lead to 10,000 extra jobs in Washington over five years, he said; South Korea already is the state’s fourth-biggest export market.
And Russia, one of Washington’s fastest-growing trading partners, is set to join the World Trade Organization next year. That could benefit not only the state’s wheat and apple producers, but also the aerospace, infotech and even coffee industries, Schinfeld said.
Manufacturing
Manufacturing is more significant in Washington than in most states — mostly, though not entirely, because of aerospace. Boeing alone added more than 8,000 jobs in the state this year.
A slew of new airplane orders and an ambitious increase in the pace of production likely mean more aerospace jobs are on the way. Local employment also would receive a boost if Boeing decides to complete its Air Force tankers here rather than in Wichita, Kan.
For the rest of the state’s manufacturing sector, though, healthier business may not lead to fatter payrolls. Take Kent-based Flow International.
Flow makes ultra-high-pressure waterjets used to cut anything from paper and glass to steel plates, and for stripping paint and other coatings. The company lost money for two years during the downturn as sales plunged, but returned to profitability in the fiscal year ended April 30 on a 24.6 percent jump in sales. In the past six months, Flow has made more than four times as much money as it did in all of its last fiscal year.
How many jobs does Flow plan to add to its 300-plus local workforce? Not many.
Like many companies, Flow slashed its payroll during the recession and revamped operations for greater efficiency. As a result, CEO Charley Brown said, “We’re able with our current employee base to do more than we were able to before.”
That same dynamic is helping Flow sell more cutting tools and spare parts.
“As we’ve come out of the recession,” Brown said, “people who’d reduced their workforces and now have demand returning to what it was before (are) trying to meet it with more efficient production rather than by hiring more people.”
Flow’s customers also may have been swayed by a couple of rich tax breaks meant to spur capital investment, including one that allowed businesses to write off 100 percent of the purchase cost of new equipment. While that particular break expires Saturday, other, more limited breaks will continue into 2012.
Housing
More than anything else, the housing bust was responsible for turning a mild recession into the worst slump since the Great Depression. Housing remains the economy’s biggest millstone.
Despite an uptick in sales of distressed properties by lenders or owners behind on their mortgage payments, plenty more are in the foreclosure pipeline, said Glenn Crellin, director of the Washington Center for Real Estate Research at Washington State University.
“You have an inventory of properties that are at least 90 days past due on their mortgages that, at the current foreclosure rate, will last at least four years,” Crellin said. “With that number of distressed properties out there, price appreciation in the near term is unlikely.”
Indeed, the median sales price for King County houses last month, $321,700, was 13 percent less than the median price in December 2010. Bank-owned houses accounted for 20 percent of all King County sales, up from 14 percent in November 2010.
That makes for a tough environment for homebuilders such as Bellevue-based Quadrant Homes. For years, the Weyerhaeuser subsidiary had targeted first-time homebuyers; its message, President Ken Krivanec said, was “more house, less money.”
But with fewer people able to qualify for mortgages and many of those gun-shy about buying, Quadrant has had to revamp its business. “We knew that Quadrant couldn’t wait for a turnaround to succeed,” Krivanec said.
The average Quadrant home now is smaller, and the company lets buyers customize nearly every aspect, from floor plans to door handles. An array of programs also takes some of the perceived risk out of buying a house — from paying up to six months of mortgage payments if buyers lose their job, to helping them sell or rent their existing house.
Krivanec said he was “encouraged about the possibilities” of the new strategy in 2012. But he has other options: Though Quadrant always has built just single-family homes, Krivanec said the company is studying the possibility of moving into the multifamily market.
“We’re open to it,” he said. “When I make a decision, I’ll get back to you.”
Retail
After falling year-over-year for nine consecutive quarters, taxable retail sales in the four-county Puget Sound region began to turn back up in the second half of 2010.
This year, first-half sales were up almost 2 percent from the same period in 2010, and retail strategists Pat Johnson and Dick Outcalt say the improvement is poised to continue in 2012.
The main reason: Consumers are feeling better about the economy. Consumer confidence, a leading indicator of retail sales, has strengthened for four consecutive months, and it has been buoyed locally by Boeing’s upturn and recent job gains.
“Consumer confidence in the Northwest, from Vancouver, B.C., to Eugene, is jumping right out of its skin,” Outcalt said. He expects confidence to remain elevated for three to five years, and surpass that of the nation as a whole.
However, not all retailers will benefit. There’s been a trend for years away from middle-market merchandisers, toward both upscale stores and discounters. That trend accelerated during the recession, as big-box chains from Circuit City to Linens ‘N Things have failed while the Nordstroms and Dollar Trees of the world have thrived. (The owner of Sears and Kmart said this week that as many as 120 underperforming stores would be closed.)
“If you’re a retailer in the middle — with what we call ‘popular price points’ — it’s been dangerous, and we don’t see that changing,” Johnson said. “Customers are either choosing to trade up or they’re looking for a bargain.”
Retailers also need to pay attention to events in Washington, D.C. Though Congress this month agreed to extend long-term jobless benefits and a payroll-tax cut, the extension only runs for two months.
Both programs pump significant amounts of money into the local economy. Emergency unemployment payments to Washington workers totaled $1.81 billion in 2011, or 0.6 percent of the state’s total personal income, according to an analysis by consulting firm IHS Global Insight. That was the eighth-highest share in the country.
The state Employment Security Department estimated that 40,000 unemployed workers would have lost benefits by the end of January, and 20,000 more in February, if not for the two-month extension.
But Congress will begin revisiting the issue next month, raising the prospect that hundreds of millions of dollars in spendable cash will vanish from the local economy.
“If they can’t come to an agreement to extend the payroll-tax cut and extend unemployment benefits,” forecaster Conway said, “it’ll take us even longer to get out of this recession.”
This holiday season, Quadrant Homes wants to make sure every pair of feet in Seattle is protected from the elements. To that end, Quadrant, one of Washington State’s largest home builders, is once again calling on community members to bring new pairs of socks to any Quadrant Community Sales Office or Design Studio for their “Toasty Toes Tube Sock Drive” benefiting Seattle’s Union Gospel Mission. Donors will receive free passes to the Space Needle. Donations are accepted now through Friday, December 2.
“One of our key company values at Quadrant Homes is community involvement,” said Quadrant Homes president Ken Krivanec. “We’re glad we can help again in that regard by providing warm clothing to those in our community who are less fortunate.”
The Mission plans to hand out over 20,000 pairs of socks this year through a variety of programs. In every year of participation, Quadrant has donated several thousand pairs of socks to the Mission. In the final week of this year’s campaign, the mark stands at well over a thousand.
“Quadrant Homes came to us and asked, ‘How can we help?’ Then, year after year, they continue to pour resources and support to meet the needs of the homeless in our community,” said Jeff Lilley of Seattle’s Union Gospel Mission. “Their contributions not only take the edge off of a brutal winter, but they are bringing hope to thousands who otherwise would have none.”
Quadrant Homes believes in corporate responsibility, and employees regularly support the community through grants, sponsorships and volunteer activities.