Expanding into a new regional market is one of the most challenging moves a home builder can make. It requires land acquisition strategy, local market knowledge, partnership structures, and product design tailored to regional tastes. McCar Homes demonstrated how to execute this playbook effectively when it entered the Raleigh-Durham market and created Stonegate, a 670-unit master planned community in Wake Forest, North Carolina. The story of how McCar built this Carolina charmer offers practical lessons for any builder looking at market entry strategy and community development in the competitive Southern housing landscape.
Market Entry Strategy: Finding the Right Growth Corridor
McCar Homes, founded 50 years ago by Dan and Elaine McSwain in Vidalia, Georgia, had established a strong presence across the Southeast before setting its sights on the Raleigh market in 2003. The company’s approach to geographic expansion followed a disciplined pattern that other builders can study and adapt.
Identifying Underserved Growth Zones
McCar’s initial projects in the Raleigh area were concentrated west of the city, in Cary and Apex. These communities performed well, but the builder recognized that the northeastern growth corridor, stretching toward Wake Forest along the new I-540 outerbelt freeway, offered even greater long-term potential. Residential builders evaluating land acquisition should watch for these indicators of emerging growth zones:
- New transportation infrastructure such as beltways, outerbelts, and highway extensions that open previously inaccessible land
- Proximity to employment centers and major employers that draw relocating transferees
- Available large parcels suitable for master planned development at scale
- Local government openness to residential development and community planning
- Price appreciation trends in adjacent established neighborhoods that signal room for product segmentation
The northeastern corridor, as Steve Check, McCar’s Raleigh division vice president, described it, offered “great accessibility and attractive demographics.” Builders planning market entry should map infrastructure timelines against land availability to identify corridors that are about to open up rather than already saturated.
The Partnership Model for Large-Scale Development
Stonegate’s scale set it apart. At 670 units across 215 acres, it was a project typically tackled by public builders in the Raleigh market at the time. McCar, a private builder, needed a different approach. The company brought in an investment and development partner, Jacksonville-based Stokes Land Group, to share the financial load and bring specialized development expertise.
The structure worked as follows: Stokes Land Group took ownership of the land and managed entitlements, site work, and infrastructure installation. McCar contracted to buy finished lots as needed, matching lot takedown pace to sales absorption. This arrangement let McCar control the land and the community vision without carrying the full balance sheet risk of a 215-acre development upfront.
Builders eyeing large-scale master planned projects should consider these partnership models:
| Partnership Model | How It Works | Best For |
|---|---|---|
| Land Banking | Investor holds land while builder buys lots on schedule | Builders who want to control land without full upfront cost |
| Joint Venture | Builder and partner share equity and profit split | Large projects requiring shared risk and combined expertise |
| Lot Option Agreement | Builder pays option fee to secure lots, exercises as needed | Builders who want flexibility in takedown pace |
| Development Partner | Specialist developer handles site work; builder buys finished lots | Builders focused on home construction, not land development |
McCar’s arrangement with Stokes Land Group most closely matched the development partner model. As Check explained, “We signed the land over to them, then contracted to buy the lots they develop.” This freed McCar to focus on what it does best building homes while leveraging Stokes’s expertise in large-scale land development.
Product Segmentation: Multiple Series for Diverse Buyers
A single product line rarely sustains a 670-unit community. McCar designed Stonegate with multiple series to segment pricing and capture different buyer profiles. “We knew we would have to do multiple product lines to segment pricing in order to get the absorption to make the pro forma work,” Check said.
The Masters Series
The centerpiece of Stonegate’s product offering is the Masters Series, featuring five floor plans ranging from 2,600 to 3,300 square feet. Base prices ran from $335,000 to $380,000, placing these homes in the move-up segment of the Raleigh market. Lots measured 75 by 130 feet, providing generous yard space that Southern homebuyers still expect.
The Hanley Model: A Study in Value Engineering
The Hanley model, base-priced at $365,000, exemplifies how builders can pack value into a traditional floor plan. Hard costs came in at $52 per square foot for materials and labor. The plan succeeds by balancing generous square footage with cost-conscious construction methods.
Key features that made the Hanley attractive to buyers:
- Traditional Southern architecture that resonates with regional buyer preferences for brick fronts, covered porches, and symmetrical elevations
- Flexible space with a sunroom option that allows buyers to customize without structural changes
- Side-entry garage placement made possible by a corner lot location, keeping the front elevation clean and maximizing curb appeal
- Value pricing delivering more square footage per dollar than competitors in the same corridor
- Upgrade-friendly base pricing that leaves room for options and customization revenue
The Hanley was not an innovative or radical floor plan, but that was the point. Buyers in the Raleigh move-up market favored solid, traditional architecture. McCar gave them exactly that with enough flexibility to feel customized. As Bob Kosnik, McCar’s Raleigh division vice president, noted, “It has a lot of square footage for the money, especially at the base price. Buyers also like the flexibility of the Hanley.”
Pricing Below and Above the Masters Series
Stonegate included product lines below the Masters Series for entry-level and first-time move-up buyers, as well as a premium tier above it for luxury buyers. This three-tier strategy allowed McCar to capture buyers at different life stages and income levels while maintaining momentum across the community’s multiyear sellout period.
For multi-market home builders, this product segmentation approach is especially relevant. A builder entering a new region needs to understand local price points and buyer expectations, then design product lines that ladder up from entry level to luxury without gaps that push buyers to competitors.
Site Design and Curb Appeal in Traditional Southern Homes
Stonegate’s success was not just about floor plans and pricing. The site design and elevation treatment played a major role in attracting buyers, particularly in a market where Southern traditional architecture remains the dominant preference.
Corner Lot Strategy for Garage Placement
The Hanley model home was placed on a corner lot, a deliberate choice that allowed a side-entry garage. This seemingly small detail had an outsized impact on curb appeal. With no garage door dominating the front elevation, the home presented a clean, porch-forward face to the street. Builders working on similar traditional designs should prioritize corner lots for their higher-end plans or use rear- and side-entry garages wherever possible.
Architecture That Respects Regional Taste
The South remains a market where traditional architecture outsells contemporary or modern design. McCar understood this and invested in elevations that felt familiar and inviting to Raleigh buyers. Covered front porches, brick and siding combinations, symmetrical window placement, and gabled rooflines were standard features across the Masters Series.
This approach aligns with broader lessons in home design that feels like home for the target buyer. When builders respect regional architectural preferences rather than imposing a one-size-fits-all design, they achieve faster absorption and fewer price reductions.
Financial Performance and Growth Trajectory
The results of McCar’s disciplined market entry spoke for themselves. In 2005, the Raleigh division closed 128 homes. In 2006, that number more than doubled to 280 closings. Company-wide, CEO Dan McSwain, then 44, expected revenues to exceed $600 million in 2006, positioning McCar for a higher ranking among the nation’s largest builders.
Key Metrics From the Stonegate Launch
| Metric | Value |
|---|---|
| Community size | 670 units across 215 acres |
| Lot size (Masters Series) | 75 x 130 feet |
| Home size (Masters Series) | 2,600 to 3,300 sq ft |
| Base price range (Masters Series) | $335,000 to $380,000 |
| Hanley hard costs | $52 per sq ft (materials + labor) |
| Raleigh closings 2005 | 128 units |
| Raleigh closings 2006 | 280 units |
| McCar company-wide revenue (2006) | $600 million+ |
Expansion Plans Beyond Raleigh
Fresh off the Raleigh success, McSwain set his sights on Charleston, South Carolina, and Birmingham, Alabama. “Those are Southern cities where we would be very comfortable,” he said. The company was already operating in six cities including Atlanta, Greenville (South Carolina), and other Southeastern markets. The Stonegate playbook creating a master planned community with multiple product lines in a growing corridor was one McCar planned to replicate.
McCar’s story demonstrates that disciplined market entry, smart partnership structures, and product design rooted in regional preferences can produce outstanding results even in competitive housing markets. Builders who study the Stonegate model will find practical strategies for their own estate home design principles and community development ambitions.
For builders considering expansion into new markets, the combination of strong partnership structures, multiple product lines for different buyer segments, and architecture that respects local traditions remains a proven formula. McCar’s Carolina charmer at Stonegate is more than a single successful community it is a blueprint for how private builders can compete at the highest level in the master planned space.