By Mary Ellen Podmolik | NVR,
Inc., an East Coast builder that recently turned its attention to the
Midwest, may get a foothold in the Chicago market, via Bankruptcy Court.

The
Reston, Va.-based company has been identified as the “stalking horse”
bidder for substantially all the assets of Orleans Homebuilders, a 
Pa.-based builder with five suburban Chicago communities. Orleans sought
Chapter 11 bankruptcy protection March 1.

Under the asset purchase agreement filed with the court in Wilmington, Del., NVR would acquire all of Orleans’ land, work-in-process home construction and intangible assets in each of Orleans’ regions for $170 million. NVR also would assume $52.6 million of bank letters of credit and certain other financial arrangements related to the acquired communities. The deal does not include two communities in New York, the community property management subsidiary and its mortgage brokerage affiliate.  

Last fall, publicly held NVR, which operates under several names, including Ryan Homes, entered the Indianapolis market by acquiring unfinished lots in 10 communities from a builder’s bankruptcy auction of assets there.

Orleans has suburban developments in Lake in the Hills, Lake Villa, Aurora, Oswego, Woodridge and Bolingbrook.

Under the sale motion filed by Orleans with the court, others would have to submit their bids for the company by June 16. A sale of the company is expected to be completed by the end of June.