McStain Neighborhoods, a local Boulder area builder has filedchapter 11 bankruptcy. McStain has been building homes in the area since the 1960’s originally under Horizon Building Co. Tom and Caroline Hoyt, the companies founders have enjoyed a good reputation throughout the years and have built many good homes throughout the front range. I have sold many homes to happy buyers and I own a McStain townhome as a rental property. Their focus has been green building and sustainable neighborhood design.
The first sign of financial trouble came last summer when the company laid off about half of their staff and closed their offices. New home builders have been scaling back production during the last few years but obviously they need to have some volume in order to survive.
All of the recent buyers of McStain homes will be disappointed to find out that the company will not be servicing it’s warranties. This is a big advantage of buying a new home and when that confidence is shaken it is hard to get back.
McStain is currently building homes at the SW corner of Baseline Rd. and 95th Street under a separate LLC not affected by the bankruptcy. I wonder how that project will be affected by the bad press and the precedent of unfulfilled warranties? Their website is www.mcstain.com.