Toll Brothers

Toll Brothers, Inc.

Company type	Public
Industry	Real estate, Home construction
Founded	1967
Founder	Robert I. Toll, Bruce E. Toll
Headquarters	Montgomery County, Pennsylvania , United States
Area served	United States
Key people	Douglas C. Yearley Jr. (Chairman and CEO), Martin Connor (CFO), Robert Parahus (COO and executive president)
Products	Residential homes, Carriage homes, Townhouses, Condominiums, Rental apartments, Student housing, Mortgage lending, Insurance, Home automation and security systems, Landscaping services

Toll Brothers, Inc. stands as a prominent American builder focused on both residential and commercial real estate throughout the United States. By 2020, it was ranked as the fifth-largest homebuilder in the nation based on revenue and secured the 411th position on the Fortune 500 list. In 2021, the company's average home price reached $844,400, with regional variations from $663,700 in the Southern states to $1,376,800 in the Pacific area. Its subsidiary, Toll Integrated Systems, manages a manufacturing and distribution facility located in Morrisville, Pennsylvania.

History

Established in 1967 in Pennsylvania by brothers Robert I. Toll, a law alumnus from the University of Pennsylvania, and Bruce E. Toll, who graduated in accounting from the University of Miami, Toll Brothers was incorporated under Delaware law. The firm launched its initial public offering with proceeds totaling $40 million. Drawing on their family’s homebuilding roots, the founders successfully expanded into upscale residential markets.

The company’s portfolio encompasses single-family residences, carriage homes/townhouses, and condominiums. Further diversification includes rental apartments through its Apartment Living division and premium student accommodations via the Campus Living division. Supporting services such as mortgage lending, insurance offerings, home automation and security systems, along with landscaping services, enhance its market position and competitive strength.

Executives

Robert Toll resigned as chairman in 2018 but continued contributing as a special advisor. Douglas C. Yearley Jr., who started with Toll Brothers in 1990, stepped into the CEO role in June 2010 and currently holds both chairman and CEO titles. Yearley also serves as co-chair for the Pennsylvania Chapter of the American Cancer Society's CEO's Against Cancer initiative. Martin Connor took on the role of CFO in 2010, while Robert Parahus was elevated to COO and executive president in 2020.

Acquisitions

Since 1995, Toll Brothers has executed thirteen acquisitions to broaden its market reach, including:

• Geoffrey H. Edmunds based in Scottsdale, Arizona (1995)
• The Las Vegas Division of Coleman Homes (1998)
• Silverman Homes serving metropolitan Detroit (1999)
• Richard R. Dostie and The Manhattan Building Company located in northern New Jersey (2003)
• Landstar Homes’ Central Florida Division (2005)
• CamWest Development operating in Seattle (2011)
• Shapell Industries across California (2014)
• Coleman Homes’ Boise, Idaho operations (2016)
• Sharp Residential situated in Atlanta (2019)
• Sabal Homes covering South Carolina (2019)
• Thrive Residential active in Nashville and Atlanta (2020)
• Keller Homes based in Colorado Springs (2020)

These strategic acquisitions have enhanced Toll Brothers' geographic diversification and expanded its product range.

Disputes

Toll Brothers has received a Consumer Affairs rating of 1.3 out of 5, with numerous grievances centered around product quality and warranty service issues. In 2007, the company resolved a $25 million investor lawsuit alleging deceptive earnings forecasts during the housing market downturn without admitting any fault.

Also in 2007, an incident involving a roofing tar fire caused substantial smoke; following this event, Toll Brothers agreed to remediate related problems and filed a $10 million lawsuit against the window contractor involved.

In 2012, Toll Brothers incurred a $741,000 fine due to over 600 violations of the Clean Water Act concerning stormwater runoff at several locations including areas within the Chesapeake Bay Watershed. This led to comprehensive enhancements of their stormwater management protocols across all operations.

Moreover, Toll Brothers has been involved in legal disputes related to denied building permits stemming from traffic congestion and environmental impact concerns, highlighting ongoing regulatory hurdles affecting its development activities.