Why Did The Villages Sell Southern Lifestyles?

[Villages Kahuna]

Some have expressed concern that as TV proceeds towards build-out that the Morse family is leaving. The family has said they have no such plans, but such rumors continue.

As far as their sale of Southern Lifestyles, I think it makes sense from their perspective. They are commercial and residential real estate developers, businesses which they perform exceedingly well. Selling furniture or running restaurants or clubs or the newspaper or radio station or the bank or the schools are on the periphery of their business focus. Those businesses are supportive of the primary business focus, important only in that sense. If those things enhance the sale of homes or the leasing of commercial space, they'll continue. But once such enterprises can be adequately provided by other retailers or restaurants, they will quietly exit those businesses.

Southern Lifestyles was originally created when TV used the "street of dreams" concept for selling houses. The street of dreams was in the long building next to Panera Bread in Lake Sumter. Back then, buyers would select their lot then go to the street of dreams to spec and furnish their new house. The "street" had "stores" for everything from construction add-ons to wall coverings, floor coverings, plumbing fixtures, appliances, lighting, patio equipment and Southern Lifestyles for the selection of furniture. Buyers spent five days going thru the street of dreams and they left with their new house completely spec'd and furnished and priced. Then they'd visit Citizens First Mortgage and 45-days later they were scheduled to return and close on their new Villages residence, finished, furnished and ready for move-in. Southern Lifestyles was there as a part of the process of selling homes.

Later, about 7-8 years ago, TV stopped using the street of dreams concept and began building and selling spec houses. Pretty much 'take it or leave it' for new buyers. Of course by then they had built more than 30,000 homes in TV, so they pretty much knew from experience what people wanted. But they kept Southern Lifestyles open for people to furnish their homes, actually expanding the store to fill the space which had been the street of dreams. Like most things the developer does, it was a superbly well-managed business selling quality furniture and design advice very appropriate to TV demographics and lifestyle. But it continued to be an adjunct to the developer's primary business--real estate development.

At times during the history of the development of TV, credits at Southern Lifestyles were used as a means to attract buyers. Houses were sold including a $2,000 to $15,000 credit at Southern Lifestyles for the buyer to furnish his new residence, all rolled up in his mortgage loan. If you assume the markup on furniture is about 50%, that was a brilliant move by the developer. The buyer got furniture valued at 100%, which cost the developer only 50% of the credited amount. Brilliant...but given today's market, no longer necessary.

Now that The Villages is in sight of build-out, the developer is exiting those businesses peripheral to the main objective. Southern Lifestyles is only one of those businesses that obviously is not central to the developer's longer term business objectives. All the remaining homes being sold are largely spec, and the need for a furniture operation is no longer.

Personally, I don't think the sale of Southern Lifestyles is evidence that the Morse's are leaving at all. I do see it as a focusing of their capital and business model on things they do well and which will maximize profits.

The question remains however of whether City Furniture will be as well managed and responsive to this market as was Southern Lifestyles. Time will tell. They're not getting a good start.

[Topspinmo]

Why would they leave a gravy train or should I say train load of income for them and their siblings. Don't see WB selling out even though I wish he would keep his mouth shut on topic's other than business. So why would they?

[Villages Kahuna]

Why would they leave a gravy train or should I say train load of income for them and their siblings. Don't see WB selling out even though I wish he would keep his mouth shut on topic's other than business. So why would they?Think about the question. Southern Lifestyles had the market to themselves. Houses were being built and occupied at the rate in the hundreds per month, depending in the economy. At the completion of build-out that "gravy train" slows down dramatically. Southern Lifestyles would have a market defined as filling in already furnished homes, competing with any other furniture store in the area. I think the Morse's sale of this business is a wise decision to minimize competitive and financial risk. The furniture business certainly won't be the "gravy train" it once was.

[mickey100]

I agree. We are having some work done in our house and the contractor told me that The Villages is telling the contractors not to expand, buy expensive new equipment, trucks, etc. that they expect to be done in the next 17 months. So it certainly sounds as though buildout is close. The bulk of furniture buying occurs when the homes are purchased. Once buildout has occurred, I would expect furniture sales to slow down considerably, lessening the potential profit for the store.

[KathieI]

Thanks, VK. For what its worth, I think you're dead on with your thinking. The history of "street of dreams" was very interesting and I had never heard that. But it makes a lot of sense for when I first starting coming here in '07, SL was in a long stream of buildings down in LSL and I never understood why but now I know. Also when they started to downsize SL more and more, I thought they are just exiting the businesses they aren't experts in. Its a very reasonable plan to me. One thing I think we all must agree on, they surely are Marketing geniuses.

[Madelaine Amee]

Some have expressed concern that as TV proceeds towards build-out that the Morse family is leaving. The family has said they have no such plans, but such rumors continue.

As far as their sale of Southern Lifestyles, I think it makes sense from their perspective. They are commercial and residential real estate developers, businesses which they perform exceedingly well. Selling furniture or running restaurants or clubs or the newspaper or radio station or the bank or the schools are on the periphery of their business focus. Those businesses are supportive of the primary business focus, important only in that sense. If those things enhance the sale of homes or the leasing of commercial space, they'll continue. But once such enterprises can be adequately provided by other retailers or restaurants, they will quietly exit those businesses.

Southern Lifestyles was originally created when TV used the "street of dreams" concept for selling houses. The street of dreams was in the long building next to Panera Bread in Lake Sumter. Back then, buyers would select their lot then go to the street of dreams to spec and equip their new house. The "street" had "stores" for everything from construction add-ons to floor coverings, plumbing fixtures, appliances, lighting, patio equipment and Southern Lifestyles for the selection of furniture. Buyers spent five days going thru the street if dreams and they left with their new house completely spec'd and furnished and priced. They'd visit Citizens First Mortgage and 45-days later they were scheduled to return and close on their new Villages residence, finished, furnished and ready for move-in. Southern Lifestyles was there as a part of the process of selling homes.

Later, about 7-8 years ago, TV stopped using the street of dreams concept and began building and selling spec houses. Pretty much 'take it or leave it' for new buyers. Of course by then they had built more than 30,000 homes in TV, so they pretty much knew from experience what people wanted. But they kept Southern Lifestyles open for people to furnish their homes, actually expanding the store to fill the space which had been the street of dreams. Like most things the developer does, it was a superbly well-managed business selling furniture and design advice very appropriate to TV demographics and lifestyle. But it continued to be an adjunct to the developer's primary business--real estate development.

At times during the history of the development of TV, credits at Southern Lifestyles were used as a means to attract buyers. Houses were priced including a $2,000 to $15,000 credit at Southern Lifestyles for the new owner to furnish his new residence, all rolled up in his mortgage loan. If you assume the markup on furniture is about 50%, that was a brilliant move by the developer. The buyer got furniture valued at 100%, which cost the developer only 50% of the credited amount. Brilliant...but given today's market no longer necessary.

Now that The Villages is in sight of build-out, the developer is exiting those businesses peripheral to the main objective. Southern Lifestyles is only one of those businesses that obviously is not central to the developer's longer term business objectives. All the remaining homes being sold are largely spec, and the need for a furniture operation is no longer.

Personally, I don't think the sale of Southern Lifestyles is evidence that the Morse's are leaving at all. I do see it as a focusing of their capital and business model on things they do well and which will maximize profits.

The question remains however of whether City Furniture will be as well managed and responsive to this market as was Southern Lifestyles. Time will tell. They're not getting a good start.

Excellent post - totally agree, as far as I'm concerned it's only commonsense. As for the family leaving this area - why? They have three, maybe four, generations living here now and people think they will uproot and move on - cannot see it happening.

[janmcn]

Actually Southern Lifestyles began in the small storefront that now houses Beall's Outlet in Spanish Springs, next to the bank. Around 2001, the big store was built in SS connecting two strip malls. One mall had the Winn Dixie, the other mall had the Publix.

In the past, Southern Lifestyles was the only furniture company given access to new homes to come in and set up new furniture, so that when new residents arrived, their homes were furnished for them. In 2000, they had a special whereby new purchasers were given 5% of the purchase price in new furniture from Southern Lifestyles.

When Lake Sumter Landing opened in 2004, the Street of Dreams, was strictly the design center. That's why there was a swimming pool in the furniture store. Shortly after the design center opened, the developer went to all spec homes, and the design center was converted into a furniture store.

Before that, the design center was in the row of buildings anchored by Panera's in Spanish Springs. From the outside it looked like individual buildings, like it does now, but on the inside it was one big space where customers came to pick out appliances, floor coverings, etc etc. Back in those days, every house type from patio villa to premier could be custom outfitted.

[rubicon]

Spin offs for the Villages of Lake Sumter, Inc.(VLS) are common place and do signal their planned changes . The spin off of the Wellness Center was viewed with concern but the purchase by MVP has been a god sent both economically and its facilities. Perhaps the buyer of Southern can do the same?

I accept and understand the fact that VLS acts based only on it financial interests. However, I don't have to like it. The Fruitland Park project is a boon to VLS but a bane to residents who will experience more crowding related problems.

C�st la vie!

[billybye]

Why would they leave a gravy train or should I say train load of income for them and their siblings. Don't see WB selling out even though I wish he would keep his mouth shut on topic's other than business. So why would they?

who is WB?

[blueash]

who is WB?

wilford Brimley
walter brennan
William buckley
warner brothers

this is fun

[bkcunningham1]

Just something that I've been pondering. We went to Founder's Day at The Villages Charter High School last night. Everything at the schools' are top notch and operate efficiently thanks to the employees and the parents and the forethought of our community's developer. I can't say enough good things about the charter school system here.

The event last night was packed. My husband and I both noticed the number of fathers attending with their families who were employed in the construction field in some way, shape or form. T-shirts or shoes or just by the conversations, it was obvious that they work in the construction end of TV and that is why their child(ren) attend this marvelous school system.

If they are no longer employed by TV, their children cannot attend the schools. We just had some major additions to our charter schools. Major. These changes can be seen in this small example from the schools' website: 2011-2012

VCS sets record opening day enrollment of 2,245 students in K-12 to start the 2011-2012 school year.
The Villages Early Childhood Center opens in August with 237 PK3 & PK4 students in their beautiful new facility
The Elementary Gym and multi-purpose facility along with Fine Arts wing & new cafeteria at The Villages Charter Middle School open to rave reviews
VCS is 9th ranked K-12 school in Florida
VHS Class of 2012 has largest graduating class thus far (126)
__________________________________________________ __________________________________________________ _____________________________

2012-2013

VCS sets record opening day enrollment of 2,459 students in K-12 and 232 in PK-3 & PK-4 to start the 2012-2013 school year.
VCS was awarded full district accreditation (K-12) from the Southern Association of Colleges & Schools (SACS)
VCS begins construction of the latest expansion (Phase VII).
The Villages High School is awarded "Early College" site status by SACS and partners with Lake-Sumter State College to offer a full Associates of Arts (AA) degree.
__________________________________________________ __________________________________________________ _____________________________

2013-2014

VCS completes construction of the latest expansion (Phase VII) with a ribbon cutting & open house on July 25, 2013.
VCS sets record opening day enrollment of 2,660 students in K-12 and 243 in PK-3 & PK-4 to start the 2013-2014 school year.

Now, if there isn't going to be anymore growth or construction within TV, why would the developer and the people in the know make these expansions to the school knowing the potential loss of enrollment if these people lose their jobs?

[buzzy]

I hope City Furniture is not reading this thread.

[ilovetv]

Just something that I've been pondering. We went to Founder's Day at The Villages Charter High School last night. Everything at the schools' are top notch and operate efficiently thanks to the employees and the parents and the forethought of our community's developer. I can't say enough good things about the charter school system here.

The event last night was packed. My husband and I both noticed the number of fathers attending with their families who were employed in the construction field in some way, shape or form. T-shirts or shoes or just by the conversations, it was obvious that they work in the construction end of TV and that is why their child(ren) attend this marvelous school system.

If they are no longer employed by TV, their children cannot attend the schools. We just had some major additions to our charter schools. Major. These changes can be seen in this small example from the schools' website: 2011-2012

VCS sets record opening day enrollment of 2,245 students in K-12 to start the 2011-2012 school year........

Now, if there isn't going to be anymore growth or construction within TV, why would the developer and the people in the know make these expansions to the school knowing the potential loss of enrollment if these people lose their jobs?

That's a good point to ponder. I would guess that the majority of students' parents are not construction workers. They sometimes are more transient and temporary in the workforce.

I think one of the biggest concerns in building TV and expanding it is healthcare staffing, and the schools were built to attract younger doctors, nurses, dentists, and all other types of workers, who would have school-aged children. They would not think of coming to live and work in a place where their children are not allowed to live (under age 19 not permitted to live in TV). Living in the community where they work is an important component of healthcare. People do not (or should not) want "hired guns" who have no interest in the community and its offerings to all age levels and demographic groups.

With the TV Health system rapidly growing and expanding here (with the developer's sound fiscal management and caring subsidy of dr. salaries) the need for more drs., nurses, technicians, etc. will grow too.

[Spectreron]

Warren Buffet

[billethkid]

at a sell/build/close rate of 250-500 homes per month (depending what year) there were a lot of rooms needing to be filled with FLORIDA furniture.....what was that marketing 101 addage.....find a need and fill it!!! Wahlah....TV opens furniture stores.

As the need can see the end of the rainbow......time to start phasing out of the furniture business.

Makes all the sense in the world wothout any between the lines speculation or extrapolation.

btk

[Mr.Kris]

Why would they leave a gravy train or should I say train load of income for them and their siblings. Don't see WB selling out even though I wish he would keep his mouth shut on topic's other than business. So why would they?

Why would they want to stay?

The Morse family forte is development.

You don't have to live in The Villages to remain a major stock holder of Citizens Bank and continue to reap the benefits. Besides, they could just open another branch in Texas.

The Morse's may agree with many of the villagers that TV is getting too big.

Maybe it's time to take the money and run. After resolving that pesky IRS issue that is. And, of course, building out Fruitland Park. You can't look a "gift horse in the mouth."

What does that mean for TV residents? Self-rule baby! Excepting the VCCDD, which is a problem of its own.

Full-time residents will probably have the greatest sway.

Is there something to worry about here?

Depends on the financial obligations left for the homeowners.

In regards to self-rule there's no problem. TV is the reddest of red. No partisanship bickering here.

For purposes of disclosure, I have no affiliation one way or the other.

Queue the music.

[OldManTime]

Some have expressed concern that as TV proceeds towards build-out that the Morse family is leaving. The family has said they have no such plans, but such rumors continue.

As far as their sale of Southern Lifestyles, I think it makes sense from their perspective. They are commercial and residential real estate developers, businesses which they perform exceedingly well. Selling furniture or running restaurants or clubs or the newspaper or radio station or the bank or the schools are on the periphery of their business focus. Those businesses are supportive of the primary business focus, important only in that sense. If those things enhance the sale of homes or the leasing of commercial space, they'll continue. But once such enterprises can be adequately provided by other retailers or restaurants, they will quietly exit those businesses.

Southern Lifestyles was originally created when TV used the "street of dreams" concept for selling houses. The street of dreams was in the long building next to Panera Bread in Lake Sumter. Back then, buyers would select their lot then go to the street of dreams to spec and furnish their new house. The "street" had "stores" for everything from construction add-ons to wall coverings, floor coverings, plumbing fixtures, appliances, lighting, patio equipment and Southern Lifestyles for the selection of furniture. Buyers spent five days going thru the street of dreams and they left with their new house completely spec'd and furnished and priced. Then they'd visit Citizens First Mortgage and 45-days later they were scheduled to return and close on their new Villages residence, finished, furnished and ready for move-in. Southern Lifestyles was there as a part of the process of selling homes.

Later, about 7-8 years ago, TV stopped using the street of dreams concept and began building and selling spec houses. Pretty much 'take it or leave it' for new buyers. Of course by then they had built more than 30,000 homes in TV, so they pretty much knew from experience what people wanted. But they kept Southern Lifestyles open for people to furnish their homes, actually expanding the store to fill the space which had been the street of dreams. Like most things the developer does, it was a superbly well-managed business selling quality furniture and design advice very appropriate to TV demographics and lifestyle. But it continued to be an adjunct to the developer's primary business--real estate development.

At times during the history of the development of TV, credits at Southern Lifestyles were used as a means to attract buyers. Houses were sold including a $2,000 to $15,000 credit at Southern Lifestyles for the buyer to furnish his new residence, all rolled up in his mortgage loan. If you assume the markup on furniture is about 50%, that was a brilliant move by the developer. The buyer got furniture valued at 100%, which cost the developer only 50% of the credited amount. Brilliant...but given today's market, no longer necessary.

Now that The Villages is in sight of build-out, the developer is exiting those businesses peripheral to the main objective. Southern Lifestyles is only one of those businesses that obviously is not central to the developer's longer term business objectives. All the remaining homes being sold are largely spec, and the need for a furniture operation is no longer.

Personally, I don't think the sale of Southern Lifestyles is evidence that the Morse's are leaving at all. I do see it as a focusing of their capital and business model on things they do well and which will maximize profits.

The question remains however of whether City Furniture will be as well managed and responsive to this market as was Southern Lifestyles. Time will tell. They're not getting a good start.



Bottom line is, the Developer wants out of the business, to cut costs.

[Easyrider]

Bottom line is, the Developer wants out of the business, to cut costs.

Also won't be needing any furniture available at cost to set up the furnished models.

[TexaninVA]

Some have expressed concern that as TV proceeds towards build-out that the Morse family is leaving. The family has said they have no such plans, but such rumors continue.

As far as their sale of Southern Lifestyles, I think it makes sense from their perspective. They are commercial and residential real estate developers, businesses which they perform exceedingly well. Selling furniture or running restaurants or clubs or the newspaper or radio station or the bank or the schools are on the periphery of their business focus. Those businesses are supportive of the primary business focus, important only in that sense. If those things enhance the sale of homes or the leasing of commercial space, they'll continue. But once such enterprises can be adequately provided by other retailers or restaurants, they will quietly exit those businesses.

Southern Lifestyles was originally created when TV used the "street of dreams" concept for selling houses. The street of dreams was in the long building next to Panera Bread in Lake Sumter. Back then, buyers would select their lot then go to the street of dreams to spec and furnish their new house. The "street" had "stores" for everything from construction add-ons to wall coverings, floor coverings, plumbing fixtures, appliances, lighting, patio equipment and Southern Lifestyles for the selection of furniture. Buyers spent five days going thru the street of dreams and they left with their new house completely spec'd and furnished and priced. Then they'd visit Citizens First Mortgage and 45-days later they were scheduled to return and close on their new Villages residence, finished, furnished and ready for move-in. Southern Lifestyles was there as a part of the process of selling homes.

Later, about 7-8 years ago, TV stopped using the street of dreams concept and began building and selling spec houses. Pretty much 'take it or leave it' for new buyers. Of course by then they had built more than 30,000 homes in TV, so they pretty much knew from experience what people wanted. But they kept Southern Lifestyles open for people to furnish their homes, actually expanding the store to fill the space which had been the street of dreams. Like most things the developer does, it was a superbly well-managed business selling quality furniture and design advice very appropriate to TV demographics and lifestyle. But it continued to be an adjunct to the developer's primary business--real estate development.

At times during the history of the development of TV, credits at Southern Lifestyles were used as a means to attract buyers. Houses were sold including a $2,000 to $15,000 credit at Southern Lifestyles for the buyer to furnish his new residence, all rolled up in his mortgage loan. If you assume the markup on furniture is about 50%, that was a brilliant move by the developer. The buyer got furniture valued at 100%, which cost the developer only 50% of the credited amount. Brilliant...but given today's market, no longer necessary.

Now that The Villages is in sight of build-out, the developer is exiting those businesses peripheral to the main objective. Southern Lifestyles is only one of those businesses that obviously is not central to the developer's longer term business objectives. All the remaining homes being sold are largely spec, and the need for a furniture operation is no longer.

Personally, I don't think the sale of Southern Lifestyles is evidence that the Morse's are leaving at all. I do see it as a focusing of their capital and business model on things they do well and which will maximize profits.

The question remains however of whether City Furniture will be as well managed and responsive to this market as was Southern Lifestyles. Time will tell. They're not getting a good start.

Excellent post ... most informative, well-written and one of the best I've seen on TOTV on any topic. Thanks.

[justjim]

OP "hit the nail on the head" regarding Southern Lifestyle's closing because the Developer is beginning to exit businesses that are soon to be not important to marketing and selling new homes in TV. In addition, the furniture business will greatly diminish with buildout.

As far as future development elsewhere by the Morse family, your guess is as good as mine. One of the main reasons that development on the scale of TV was not only possible but very profitable was the establishment of the Community Development Districts (CDD'S). Can you find such in other places besides Florida? Of course, there is still much land still available here in the Sunshine State.

Another factor, Gary Morse like many of us, is not getting any younger and may deside to retire and not care to accept the challenge of another TV development elsewhere.

Other changes are likely. Perhaps the Championship Courses will be next to be sold. The profit was in the lots and houses around the golf courses and not the courses themselves. One thing for sure, the next two or three years will be interesting.

[ROCKETMAN]

Pretty simple, one less thing to manage. I am sure city furniture payed a big price to buy them out. More cash coming in.