Building green communities throughout California's Central Valley, Wathen Castanos
Hybrid Homes' commitment to pushing the limits of green building has earned the
company the title of Green Home Builder's "Builder and Developer of the Year."
By Dani Smith
Wathen Castanos Hybrid
Homes is a builder and
developer that prides
itself on building
beautifully designed,
green homes while
setting the standard and continuing to raise
the bar for the rest of the nation's builders. For
this reason, the company has been selected to
receive Green Home Builder's Pubby Award for
the 2011 Builder and Developer of the Year.
As a third generation, high-performance
builder, the company underwent a few name
changes over a few decades before it was
officially called, Wathen Castanos Hybrid
Homes. Originally established in 1983 as
Heritage, Inc., the company was taken over
by three partners: Kevin Castanos, Richard
Wathen and Robert Mazmanian, in 1986.
However, it wasn't until 1994 that the Wathen-
Castanos name was adopted, and, according
to Mike Nimon, president of Wathen Castanos
Hybrid Homes, the newest modification to the
Wathen Castanos name that includes the term
'Hybrid Homes,' was adopted later to underline
the importance of green homes as a core
strategy. "Hybrid for us was branding a highperformance
home system that all of our homes
meet at all price levels. It includes buildingscience
technologies, thermal performance and
reduction in energy-use for each home with
HERS ratings in the 48 to 52 level without
solar," explained Nimon. "Our focus was to add
value in our homes by reduction of energy costs
to the buyer. Hybrid for us incorporates Low E
windows, high-performance HVAC, Energy Star
products, tankless water heaters, radiant barrier
roofing, fluorescent lighting, green material
sourcing and low-VOC products."
Typical Wathen Castanos Hybrid Homes
range in square footage, from 1,100 to 2,348
and are priced between $128,000 to $$289,000.
The average annual household income is
approximately $55,000, and according to
customer demographics statistics, 62 percent
are first-time buyers and 67 percent are under
the age of 45 years old. Aimed specifically at
target markets that include: first-time buyers,
move-ups and empty-nesters, community
sizes range from 36 to 200 units, resulting in
over building 4,000 homes in the communities
they serve. All homes have high performance
technology that surpasses the requirements
fot Title 24, Energy Star and Build It Green
California Programs. "In 2008/2009, we
launched a new marketing campaign which
promotes our hybrid-home technology.
Our levels of marketing eco-friendly, highperformance
homes have caused all of the key
competitors to raise the bar in energy features,"
said the company's president.
Building single family, detached homes priced
from $128,000 to $289,000, Wathen Castanos
Hybrid Homes is making its presence known
throughout the Central Valley of California with
communities in towns that include: Fresno,
Clovis, Dinuba, Hanford, Soledad, Paso Robles
and Central Coast metropolitan markets.
While the company has found its niche in the
Central Valley of California, some may find this
location to be a curious choice for building, as
the area currently stands at an approximate 18
percent unemployment rate and is experiencing
foreclosures and price devaluations of up to
60 percent. Regardless, the company has been
profitable in 2011 and is expected to end the
year with 181 closings approximating over $31
million in revenue, no easy feat for any builder
in this downturned economy. "We have been
focused on niche products to meet today's values
in areas with job formations. The majority of our
product has been to first-time buyers/families
and those moving from rentals to an affordable,
new home solution as we compete with
resale's," explained the company's president.
"Our age-restricted market product focuses on
AAA locations and convenience for a highly
sought after location for infill."
While Wathen Castanos Hybrid Homes
was one of the few builders in the industry
to see such a positive outcome this year,
the company's success was not without
its challenges. "Our direct costs have a
lot of pressure to increase in a time where
the market is not allowing increases to
consumers," explained Nimon. As a result,
the company focused on new architectural
product offerings with a highly controlled
value engineering process. Nimon added,
"High customer perceived value and to value
added design and specifications was critical
in the review. A focused, all-hands-on-deck
team approach of marketing, sales, purchasing,
construction, trades and manufacturers to
achieve a very specific performance objective
of product, to meet market pricing."
All Wathen Castanos Hybrid Homes are
certified by Build It Green to ensure the
company sticks to the highest quality of
green standards with every home, while
evolving with the ever-changing vigor of green
building. And while the hybrid program,
comes standard in every house, the option
to upgrade to a higher performance home
with HVAC units and solar options to get
to Net-Zero electrical operation costs are
available to consumers. "We have focused
on a build-science approach from energyreduction
savings to consumers through
thermal-efficiency, low-energy use products
and sustainable products sourcing. We recycle
70 percent of construction waste and focus on
green initiatives that are third-party confirmed
with Build It Green and our HERS raters,"
expressed Nimon. " It is a confirmation and
certification to hold us accountable to our key
initiative to be green and to differentiate us
from any 'Green Washing' applications in the
market. These certifications and third-party
reviews keep us sharp on reviewing products
and processes for continuous improvement."
While Wathen Castanos Hybrid Homes have
been successful in 2011, the company is already
making plans to succeed and grow even more
in 2012. The company of 36 led by president,
Mike Nimon, is planning to grow from four
projects to seven in 2012. "We currently have
four communities with Ivy Gate, Del Sol,
Forkner Crest and Aniston Place, and will be
opening new projects in the second quarter of
2012 in Paso Robles and Hanford, which are all
under our Hybrid label and we are projecting
230 closings for 2012," explained Nimon. "Our
commitment to good process quality and high
customer satisfaction are key to our success and
this focus is critical to maintain during growth.
Our resolve is to solidify more effort and energy
in our first 12 months of homeownership that
is customer service driven." The company also
plans to make these new homes more efficient
than ever before. According to Nimon, the next
generation of hybrid homes, the company's
"Advanced Performance Home," is currently
being built to builder's challenge and 30
percent above California Title 24 criteria.
Having builders that feel passionate about
green building is what the industry needs
to propel the green movement forward and
inspire those builders that have yet to convert
to start building more efficient and ecoconscious
homes. With their commitment
to not only just being a green builder, but to
have desire to improve their homes year after
and maintain customer satisfaction while
doing so, it comes as no surprise that this
builder and developer was on top of Peninsula
Publishing's list for green builders of 2011.
"Our entire team is honored as "Builder and
Developer of the Year," stated Nimon. He
added, "We take our building practices very
seriously, and feel this recognition is not only
a reward for our team of employees and trade
partners for seeking out the most efficient
products and procedures, but it serves as a
benchmark for us and other companies to
achieve higher building standards."
Dani Smith is an editor of Green Home Builder. She
may be contacted at dsmith@penpubinc.com
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