Member news: East Beach’s recipe for success
The latest edition of New Towns gives extensive coverage to one our developer’s communities: East Beach in Norfolk, VA. East Beach is a fantastic example of public/private partnerships done right. Their Guild is one among many examples of thoughtful execution with a focus on creating long-term value for themselves and their residents.
Customers are surveyed regularly to determine their satisfaction levels. If builders can’t maintain a high level of customer satisfaction, they aren’t allowed to build in East Beach, says Wood. “We’ve eliminated two builders from the original list so far because they weren’t performing. We have two more finishing houses right now, and they won’t be doing any more.�
Homebuilders are generally a residential real estate developer’s best customers, so it can be difficult to turn down their business. But a developer has to take the long view: they must create value by creating a great place. If a builder, through sub-par service, is devaluing the neighborhood, the developer must stop selling them lots. Removing them from the community reaffirms the developers commitment to quality, inspires other builders to do better, and helps everyone to avoid the inevitable problems that will arise from having dissatisfied customers.
The “public” part of East beach’s public/private partnership is the Norfolk Redevelopment Housing Authority, another GQ member. The RHA acquired the land in 1995 before partnering with the East Beach Company in 1998 to facilitate its development. The nature of that relationship is another contributor to the project’s success.
“In the beginning, East Beach was an unknown entity, people didn’t know if it would be wildly successful or a huge flop,� says East Beach General Manager Rock Bell. “So by giving the RHA 20 percent of the lot sales, we both would benefit from the project doing well. This turned out to be helpful on the political side: The people who are watching you are happy that you’re doing well, as opposed to begrudgingly accepting it.�