Ask for Mr. or Ms. Lawrence at J. Lawrence Homes’ Wheaton headquarters, and you will trigger a chuckle. There is no such person.
In fact, “J” is John Wozniak and James Chittaro, who share a middle name, Lawrence. They met when Chittaro, a former banker, took a residential construction course that Wozniak, a production-home executive, was teaching. They formed J. Lawrence Homes in 2006, where they are co-CEOs.
In 2009, J. Lawrence bought Smykal Associates, now a subsidiary called Smykal Homes. Founded in 1871, Smykal built about 15,000 homes in the Chicago area, especially in Naperville and Wheaton.
Now, Chittaro and Wozniak oversee a team of 20 that includes architects and construction supervisors. They subcontract tradespeople.
The builders’ current projects include single-family houses in Joliet, Minooka, Plainfield and Wadsworth, and single-family and duplex homes in Channahon. Base prices range from $169,000 in Joliet to $249,000 in Wadsworth.
“Our sweet spot is the two-story, 1,800-square-foot, three-bedroom-plus-loft house,” says Wozniak. “It sells mostly to first-time buyers or to move-up buyers who have small ranches and need more room.”
For less than $200,000, J. Lawrence buyers can get a no-frills version of this house, with vinyl siding on the outside and laminate countertops and vinyl flooring on the inside.
“These buyers want livable, usable space,” says Wozniak. “If they choose a living room, it’s for an office or a music room, not a room that no one is allowed into. These days, it’s not so much ‘This is the house we want,’ as, ‘This is the house we need.'”
While many first-time buyers worry about securing mortgages, Chittaro says, “It’s tough, but if you have good credit, you can do it. You need to have about 3.5 percent for a down payment for an FHA loan and 10 to 20 percent down for a [conventional] mortgage.” Chittaro adds that many of their young buyers live with Mom and Dad while saving their down payments.
J. Lawrence keeps some spec homes in its inventory, says Wozniak, for transferees who don’t have time to build new homes. “They also sell to move-up buyers who have just sold their other houses,” explains Wozniak. “Before the recession, some of those people would have juggled two mortgages or been able to get bridge loans. Now, they can’t carry their old mortgage while waiting for a new house to be built.”
Choosing green home products is not so much a goal for their buyers, says Wozniak, as “icing on the cake.” As new energy-saving products enter the marketplace, the partners evaluate their payback schedules. “Right now, we’re excited about some new solar panels that cost less upfront and start paying back quicker,” says Chittaro.
In addition to building new houses, J. Lawrence Homes also takes remodeling gigs from window installations to whole-house re-dos.
The partners’ division of duties came naturally, with Chittaro overseeing the finances and Wozniak running the field operations. “The three strongest aspects of a good builder are finance, construction and sales,” says Chittaro. “We have all three. That’s where many of our competitors fall short.”
Off-duty, Wozniak says, “Jim’s the relaxed golfer. I’m the frustrated golfer.” Caddying, in fact, proved to be a natural segue into the business world for Chittaro. “The golfers encouraged me to go into banking,” he recalls.
Meanwhile, Wozniak earned a college degree in pre-law, but shone in building trades and drafting classes. “I decided at some point that I could be a builder and hire a lawyer,” Wozniak says.
A former “trap boy,” Wozniak still trapshoots in his spare time. “When I’m not at a theme park,” adds Wozniak, whose three sons favor Disney World and Universal Studios.
Looking into their crystal ball, the partners see homeowners tightening their belts.
“People are saving more and are less willing to spend money on things they won’t use, like fireplaces,” adds Chittaro. “This will affect housing in the long run. And, they’re keeping their houses longer, which will increase remodeling.”
They also predict a growth in home maintenance services for busy homeowners. The builder’s new Bioview Maintenance division offers snowplowing, landscaping and home repair for homeowners’ associations and individuals.
While many of its competitors crashed and burned in 2009, J. Lawrence built 40 homes and completed 10 major remodels.
Projecting into 2010, the partners hope to step up this pace, continuing to offer homes at affordable prices. For those who can qualify for mortgages, Chittaro says, “This is an amazing time to buy.”
