Piedmont Realty & Construction & Stanley Martin Homes Fall/Winter 2013 Groundbreaking

Fall/Winter 2013

Homes Inspired by Your Life in Charlottesville’s Most Desirable Neighborhoods

Piedmont Realty & Construction and Stanley Martin Homes A Bright Future Together

INSIDE: History of Success Different Name; Same Commitment Move-In-Ready Homes

A Letter from Steve and Drew While a lot has changed at Piedmont Realty & Construction since our last edition of Groundbreaking, a lot has remained the same. Since our February merger with Reston-based Stanley Martin Homes, we have integrated some additional offerings into our portfolio of architecturally authentic homes, combined our back-office and accounting systems, and adopted many of the same building efficiencies. However, if you’ve toured our neighborhoods or one of our model homes, you probably haven’t recognized much of a difference at all – which is intentional. Since the infancy stage of the merger, the goal has always been to keep Piedmont looking and feeling the same – just under a different name. The merger was always about enhancing Piedmont and providing the resources necessary for its continued growth.

We’ve dedicated this issue of Groundbreaking to depicting the future of the company, how the merger has expanded our offerings, and what you can expect from us in the months and years to come. More specifically, we will discuss the similar philosophies of Stanley Martin, Piedmont, and how they came to join forces (pg. 2), as well as the transitioning of brand names from Piedmont Realty & Construction to Stanley Martin (pg. 5).

Together, we’ve created tools to equip you – our consumer – with the information needed to make an educated homebuying decision (pg. 7) and positioned ourselves to offer newly innovative home designs and additional communities, which are discussed in greater detail (pg. 12 & pg. 15). Illustrating our joint commitment to providing homes built around the way people really live, we’ve featured our popular Main Level Living program (pg. 17) and the issue will conclude with an overview of the ever-popular Move-In-Ready program (pg.18), which is providing a compelling alternative for Charlottesville buyers who want the “luxury and energy efficiency of new homes, without the wait.”

We are truly inspired by the positive changes taking place at Piedmont Realty & Construction as well as the fundamental principles that are staying the same. Whether you’re new to Piedmont, Stanley Martin, or both, thank you for your interest and we would love the opportunity to welcome you home.

— Steve Alloy

— Drew Holzwarth

We’ve dedicated this issue of Groundbreaking to depicting the future of the company...

— Drew Holzwarth

Steve and Drew Stanley Martin Homes Groundbreaking | 1

In 1966, Martin K. Alloy aimed to create a homebuilding organization that combined the flexibility, entrepreneurial spirit and personal touches of a local business with the strengths and finances of a large, established corporation.

47 years later, Alloy’s business plan for his company remains core to the company’s philosophy and a key to their success.

In 1998, Martin’s son Steve took over as President of the company and built upon Stanley Martin’s success through a focused commitment to creative design and energy efficient construction. Steve developed an architecture team that stayed ahead of industry trends and delivered to buyers exactly what they wanted. This in-house architecture team is continually watching trends and developing new innovative products that set the bar for Stanley Martin’s peer group to follow. In addition to great architecture, Stanley Martin was a leader in energy efficient construction well before its competitors had given any thought to “green building.”

Steve’s disciplined innovation took Stanley Martin Homes 2 | Groundbreaking

to the next level and made the homebuilding company one of the most admired in the region. The company’s resolute dedication to Steve’s nimble and highly creative mission has earned Stanley Martin Homes the spot as the largest privately owned homebuilder in the Washington DC Metro Market.

While Steve Alloy was leading the homebuilding industry in Washington DC, a very similar story was taking place in the Charlottesville homebuilding market. Drew Holzwarth was busy “turning heads” and setting the precedent for other homebuilders with Piedmont Realty & Construction. Drew built Piedmont Realty & Construction through his passionate commitment to architectural authenticity, gorgeous, fully-appointed kitchens, and energy efficient construction.

Through their unique vision and steadfast commitment to fulfill the wants and needs of their buyers, Drew and his highly experienced team earned Piedmont Realty & Construction the spot as the largest privately owned homebuilder in the Charlottesville Market.

A History of Success and A Future Worth Watching

In the fall of 2012, Drew was speaking at his alma mater, The Darden School of Business at UVA, when he met Jarod Blaney, the CFO of Stanley Martin Homes and a student at the Darden School of Business MBA for Executives Program. After hearing the uncanny similarities between the two companies, Jarod knew he had to introduce Drew and Steve. After meeting, Drew and Steve immediately knew that together they would be better. In February of this year, Reston-based Stanley Martin merged with Charlottesville-based Piedmont Realty & Construction. The acquisition benefits both companies, as Stanley Martin was looking to expand their geographical reach and Piedmont was looking for increased efficiencies, which Stanley Martin had mastered given their four decades in the homebuilding business.

Steve Alloy remarked: “The combination of Piedmont’s location and its similar business philosophy made it an ideal situation to join forces. Piedmont is committed to the same core values as Stanley Martin and has an unwavering passion for delivering the highest quality new homes and the best customer service in the industry. We’re thrilled to have Drew and his team lead our Central Virginia Division, and our expansion into additional southern markets as well.”

Piedmont is committed to the same core values as Stanley Martin...

Given their continued sales growth, sound financial backing, and expansion to Virginia’s Central Region with Piedmont, Stanley Martin is positioned to further grow the combined businesses significantly within the next year. It’s been a storied past for Stanley Martin Homes and Piedmont Realty & Construction, and as for their future, well that’s something to watch.

Groundbreaking | 3

Different Name; Same Commitment to Homebuilding Excellence

Later this year you will begin to notice that our original brand name, “Piedmont Realty and Construction” will be replaced with our new brand name, “Stanley Martin Homes.” On signs, advertisements, press releases, and model homes our name will be one in the same with our new partner. And although Stanley Martin is a highly reputable and well-known name in the Northern Virginia area, we recognize that for now, it is much lesser known in and around the Central Virginia Region. Therefore, we are crafting this message together, to assure you that although the name of Piedmont will change, the fundamentals upon which Piedmont was founded – the passion for homebuilding excellence and the commitment to delivering superior quality and customer service – will remain the same. The visions and fundamental principles for our companies were established individually by Stanley Martin Homes and Piedmont Realty and Construction long ago and they will endure long after the news of our merger made headlines.

We continually improve our homes through input from our valued Trade Partner Council where we seek insight from selected professionals with unparalleled experience. These trade partners are among the finest in their respective fields and treat each home as if it were their own. From the framers, plumbers and electricians, to the craftsmen who build cabinets and moldings, to the suppliers who furnish the finest, most up-to-date materials, appliances and technologies, we all take joint ownership and pride in our work and will continue to do so…just under a different name.

When speaking with our homebuyers, we constantly hear, “Piedmont homes just feel different.” We take this as a compliment and strive to be different. We believe Piedmont homes feel different simply because they are. The Piedmont craftsmanship, attention to energy efficient building practices, and quality components set the bar for our homebuilding peers. This quality exists because of the strong relationships we’ve created with our trade partners and leading national suppliers to help us make our homes better. We sought out the best in the business to ensure that the very best is included in your home – Kohler, TRANE, Whirlpool, Merillat, James Hardie, Owens Corning – just to name a few. Stanley Martin values and maintains relationships and corporate partnerships with the leading industry brands; therefore they will continue to be offered in our homes.

Piedmont Realty and Construction is now synonymous with Stanley Martin Homes and Stanley Martin Homes has been, and will continue to be, synonymous with homebuilding excellence.

So what can you expect? New offerings and new communities. Partnering with Stanley Martin, a builder with sound financial backing, enables us to enhance our creativity in more communities throughout the Charlottesville area and beyond. In terms of quality and customer service – you can expect nothing different – a commitment to the very best.

Both companies were strongly committed to innovative design and building high-quality homes prior to the merger. Joining forces has only reinforced that commitment.

— Drew Holzwarth

Groundbreaking | 5

Marketing and Merchandising – Equipping You with the Tools You Need

At Stanley Martin Homes, one of our primary marketing objectives is to provide our prospective homebuyers and Realtors with the tools and knowledge necessary to make the most informed homebuying decision possible.

Before visiting our models, homebuyers and Realtors are able to gather a complete understanding of all of their choices by visiting our comprehensive website at www.stanleymartin.com. Our extensive online photo gallery helps buyers choose an elevation and allows them to see what the home looks like when furnished. Buyers can explore our interactive floorplans to easily determine which homes and structural options (i.e. sunroom, main mevel bedroom, loft, etc.) best suit their lifestyle. And by using our online design studio browse, buyers can select features of their choice and calculate the approximate cost they will spend on customizing their home. These resources equip the buyer

with a significant amount of information even prior to speaking with a Neighborhood Sales Manager or visiting a model home.

After exploring all of our online shopping tools, the most important step is to experience our fully-decorated model homes. Our goal is to help homebuyers “envision their dream”, and we are proud to showcase our homes. Our experienced design team considers how our customers would actually live in our homes and the kind of styles, colors, and finishes they would likely choose. We then pull it together in a complete package, eventually creating that “take your breath away” moment when you walk through the front door of one of our model homes. We have set ourselves apart by being an award-winning leader in design innovation, driven by what our consumers want. As a result, the interiors we design for our homes feel different – they don’t feel like a showcase, they feel like home.

Take your breath away moment...

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676 614

OWENSVILLE Avinity Model Home Now Open!

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3-4 bedroom garage townhomes­ just 1 mile from downtown Charlottesville! From the upper $200’s

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434.466.1005 Belvedere Station Now Selling from our Avinity Model!

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Gorgeous townhomes with 2 car garages.

From the low $300’s

434.466.1005 Stonewater Now Selling from Dunlora Gates 3

Existing Communities Coming Soon

Luxury townhomes and single-family homes off Rio Road and close to Pen Park. From the upper $200’s

434.466.4100 Willow Glen Model Home Now Open!

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New townhomes with a main-level master and multi-level single-family homes off 29N within walking distance of Hollymead Town Center.

From the upper $200’s

703.930.0696 Spring Creek Model Home Now Open!

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Gated golf course neighborhood offering single-family homes and villas.

From the upper $200’s

703.930.0696

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Map Key:

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Huntley Now Selling from Avinity!

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A city neighborhood of single-family homes. Just steps from UVa, the Medical Center and downtown Charlottesville. From the mid $300’s

Exclusive enclave of 18 main-level master villas in a desirable Dunlora location off Rio Rd. and Meadow Creek Pkwy. From the mid $400’s

434.466.1005

434.466.4100

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Old Trail Model Home Now Open!

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Luxury single-family homes in a beautiful amenity-filled neighborhood!

Enjoy golf, shops and miles of trails.

From the low $400’s

Executive single-family homes in a gated golf course neighborhood.

From the mid $500’s

434.566.1007

434.466.7220

Dunlora Gates Model Home Now Open!

Pendower Heights at Glenmore Model Home Now Open!

Charlottesville Community Map 29 33 663 Visit Us Today HOLLYMEAD 11 4

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GORDONSVILLE

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CHARLOTTESVILLE Martha Jefferson Hospital

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Monticello

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KESWICK

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Kenridge Model Home Now Open!

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Upscale stately villas with main-level living located near Farmington Country Club and just minutes to UVa. From the mid $500’s

703.930.0696 Hollymead Walk Coming Soon!

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A community of 30 city inspired townhomes. From the upper $200’s

703.930.0696

5 ZION 64 CROSSROADS

12 Whittington Coming Soon!

Large homesites and luxury single-family homes.

From the upper $500’s

434.249.7445 13 Bending branch Now Selling!

Luxury single-family homes.

From the upper $500’s

434.466.4100

Charlottesville Model Homes Open Tuesday through Sunday, 11am-5pm Prices, features and availability subject to change without notice. Photos used are for illustrative purposes only. See our Neighborhood Sales Managers for more details.

Beautiful Homesites Also Available At: 14

Ivy Farms

Beautiful wooded 2 to 21 acre estate homesites in Ivy neighborhood!

Western Albemarle County schools.

Call 434.249.7445 for more information!

We are pleased to welcome two of Stanley Martin’s most popular floorplans to our Charlottesville communities! Given the many similarities between Stanley Martin and Piedmont’s architectural authenticity, as well as their commitment to highly functional floorplans and luxurious design details, the inclusion of Stanley Martin plans into Piedmont’s communities, was a natural choice. Both single family floorplans, The Warner and The Addison also bring with them a considerable amount of square footage, as well as optional spaces like lofts with full baths, rear and side sunrooms, and 1st floor bedrooms for those homebuyers looking for homes designed for the way they live.

The Addison is a stately home, with five elevations from which to choose – each inspired in its own unique way by authentic colonial architecture. With up to eight bedrooms and the capacity to be expanded to well over 6,000 square feet with structural options, The Addison is one of Stanley Martin’s most adaptable floorplans, suitable for families of all sizes and price points. For buyers looking for an in-law suite, guest suite, playroom, additional bedroom or home office, The Addison’s bonus room could be a perfect fit. With its own separate staircase, full bath, and walk-in closet, it’s no wonder that the bonus room has become one of Stanley Martin’s most sought-after options.

The Addison is now available at our Pendower Heights at Glenmore community in Keswick, VA.

12 | Groundbreaking

New Designs and New Communities

The Warner brings some additional square footage to our portfolio of homes at the Stonewater community in Charlottesville, VA. With square footage ranging from just under 3,000 to just over 5,000, The Warner’s floorplan is the definition of smart space. The kitchen and family room spaces are what make The Warner a fantastic plan. The kitchen design utilizes every square inch of space and flows easily into the breakfast area, which leads into the family room. Together, these three distinct spaces create a dramatically open and highly functional living area, where, research tells us, most people spend the vast majority of their time, when in the home.

The inclusion of Stanley Martin plans into Piedmont’s communities was a natural choice.

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Focus on Expansion Hollymead and Whittington

Stanley Martin’s expansion within the Charlottesville market is well underway as we already have two new communities scheduled to open within the next year.

Hollymead Walk - Within walking distance to the restaurants and retailers of Hollymead Town Center – a community of 30 city-inspired townhomes. COMING SPRING 2014.

Whittington - With one acre homesites, boasting breathtaking mountain views and located only one mile from the City of Charlottesville, this community of 96 single family homes, will offer the best of both worlds – a serene, pastoral setting to call home and close proximity to the amenities of downtown. COMING SOON.

We’ve got two very exciting communities coming online in the next year. Each offering something special, something unique, to discerning homebuyers in Charlottesville.

— Drew Holzwarth

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Main Level Living

Piedmont’s Main Level Living program is a cornerstone of its architectural portfolio and a highly attractive option for buyers of all ages. With seven Main Level Living floorplans, all right-sized with just under 3,000 square feet of living space, Piedmont provides Charlottesville homebuyers a plethora of choices when buying their dream home for the next stage in life.

The Main Level Living series was designed in response to direct requests from our buyers for homes that exude curb appeal on the outside, thoughtfully crafted floorplans on the inside, and easy access throughout. The front elevations feature a unique blend of traditional and craftsman-style architecture, each with a charming front porch, allowing homeowners the opportunity to interact with neighbors and/or take in the scenery for which Charlottesville is known.

On the inside, it’s all about highly functional floorplans – open spaces that flow naturally into one another – and all critical components within reach. With the master suite, kitchen, family room, dining room and laundry all centralized on one level, these homes are ideal for entertaining with ease, as well as aging in place. When designing the interiors of these homes, we utilized the key objectives outlined in Universal Design. Through Universal Design, we made subtle yet significant changes in our designs to allow our homebuyers the opportunity to age in place. From no-step entry garages, to doorways that accommodate walkers or wheelchairs, to showers with large doors and seats, we have thought through these key design options so buyers will not have to, should a future need arise.

From the stainless steel appliances to the highly upgraded trim detail and the Merilatt maple furniture-grade cabinets, the luxury of these homes can be tangibly felt in the details both large and small. Piedmont partners with the best in the business to bring the very best in home design and construction to its homeowners.

With great architecture, large front porches, less maintenance, and more smart spaces with luxurious details, Piedmont’s Main Level Living is all about simplifying your life while enhancing your home and everything in it.

Each of the Main Level Living homes includes three bedrooms, two to three baths, and a two car garage. These homes are offered in the Villa series, as well as single family detached homes.

Offered at the following Piedmont communities: The Villa Series (attached) Spring Creek – Zion Crossroads, VA Dunlora Gates – Charlottesville, VA Kenridge – Charlottesville, VA The Single Family Series (detached) Spring Creek – Zion Crossroads, VA Pendower Heights at Glenmore – Keswick, VA Stonewater – Charlottesville, VA

We have thought through these key design features, so our buyers won’t have to.

— Drew Holzwarth

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Stanley Martin Homes

MOVE-IN-READY

At Piedmont Realty & Construction, Drew Holzwarth and his team primarily offered beautiful “Build-To-Order” new homes in Charlottesville. Following the merger with Stanley Martin, Charlottesville customers now have an additional choice with the company’s “Move-In Ready” homes.

With the increasing demand for new construction and the decreasing inventory of energy efficient houses on the market, Stanley Martin Homes is filling a niche with its successful Move-In-Ready program. Construction is started so the home can be closer to completion or “Move-In-Ready” when a buyer wants to buy “new and energy efficient” but prefers not to have to wait. The homesite, floorplan, elevation, and interior options are selected by the company’s design professionals, allowing customers to skip the many choices that are often part of the process when buying a new home. By purchasing a Move-In-Ready home, buyers may 18 | Groundbreaking

experience the benefits, luxuries, and efficiencies of a new home without waiting the four to six months often associated with new home construction.

Now that the merger between Stanley Martin and Piedmont is complete, Drew Holzwarth and his team can also offer the additional benefit of Move-In Ready homes to Realtors and consumers in Charlottesville. Buyers with time constraints, who were previously considering only resale, now have the option of buying new construction.

By choosing a new home, buyers will enjoy significant luxuries not typically found in a used home. For example, used homes may exude a tremendous amount of charm and history, but they often lack energy efficiency, functional space like larger garages, walk-in closets, storage space, and thoughtfully designed kitchens that flow easily into family rooms.

The Luxury of A New Home Without the Wait

About 50% of Stanley Martin’s customers choose to purchase a “Build-To-Order” new home and this traditional way of purchasing will also continue throughout its Charlottesville communities. For customers who prefer to customize and choose their finishes, and have the time for build-out to occur, the option of Build-To-Order homes will continue.

When choosing a used home, buyers often have to adjust their lifestyle to fit the house. We believe buyers should have the choice to buy a house that fits the way they live – no adjustments needed. The benefits of “new” are compelling, and Stanley Martin is thrilled to introduce our Move-InReady Program to the Charlottesville market, where you can experience those advantages for yourself…without the wait.

Whether “Move-in Ready” or “Built-To-Order”, we have a home that is right for you.

The Move-In-Ready Program offers buyers the opportunity to purchase a new home, with all the benefits of new construction, without the wait.

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You have unique needs - we have unique solutions,

And we are now here to help!

First Heritage Mortgage is a direct lender with locations in Fairfax, VA and Bethesda, MD, and now in Charlottesville, VA. We are a full service mortgage lender providing home loans in Virginia, Maryland, Washington DC, Delaware and West Virginia. As a direct lender we control every aspect of the mortgage process; our loans are originated, processed, underwritten and closing documents are prepared right in our office - this translates to a better, faster and easier home loan process for you.

Visit us online at www.fhmtg.com or call us directly at 703-293-6151.

Let us help you make your dream of a Stanley Martin home a reality!

First Heritage Mortgage, LLC | 675 Peter Jefferson Parkway, Charlottesville, VA 22911 | NMLS#1070047 | Phone: 703-293-6151 | Toll Free: 866-833-5626 The Region’s Lender of Choice: First Heritage Mortgage, LLC is Licensed by the Virginia State Corporation Commission under license #MC-893, and is registered in the National Mortgage Licensing System under the following: Fairfax, VA Office: NMLS# 86548. Our individual Loan Officers are licensed in various states. Please check with your loan officer to see which states they are licensed in.

Redefining Earth Friendly Homes and Outperforming the Competition ®

Lower utility bills.

More home comfort and durability.

A real difference for our natural environment.

THAT’S WHAT

Green Living MEANS

Every home that Stanley Martin builds is designed to save buyers money for the life of the home, improve indoor air quality, and create value that traditionally has not been found in Central VA Market.

Stanley Martin Homes routinely places more energy and cost-saving components in our homes than other builders. We guarantee that our new homes will easily outperform the competition when it comes to saving money every month on energy usage.

Great New Car Energy Efficiency = High M.P.G. Great New Home Energy Efficiency = Low H.E.R.S.

Just like the MILES PER GALLON RATING on a new car, your new Stanley Martin GREEN LIVING home will receive a certified Home Energy Rating System (HERS) Index® rating provided by an objective third-party rater, so you’ll know just how efficient your new home will be.

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*The HERS Index is a registered trademark of the Residential Energy Services Network (RESNET ). Information about the HERS Index can be found on RESNET ’s website at http://www.resnet.us. Buyers should not rely solely on the HERS Index and the estimated monthly energy costs and savings shown in making any homebuying decision. All energy costs and energy savings figures are approximate. Piedmont Realty & Construction cannot guarantee utility usage or energy costs or savings, which will depend on factors that include rates, fees and charges of local energy utility companies, level of commitment to saving energy, actual utility consumption, household size, preferences and daily activities, home maintenance practices and climatic conditions. Gas utilities ® and appliances may not be available in some communities and estimated energy costs may reflect electric utilities in those communities. The HERS Index rating is determined solely as of the date of construction of the home and is based on the average score ® of rated Piedmont homes—not every Piedmont home may be tested and Piedmont Realty & Construction cannot guarantee that any home will have a HERS Index Confirmed Rating equal to or lower than the Projected Rating. Features and specifications may change without notice at any time. Please consult a Neighborhood Sales Manager for more information.

Stanley Martin’s New Offices in Charlottesville With the growth of Piedmont Realty & Construction through the merger with Stanley Martin Homes, the company has expanded into a new office space in downtown Charlottesville. We are now located in the Gleason Building, two blocks from the Downtown Mall and one mile from the University.

200 Garrett Street Suite B Charlottesville, VA 22902

434.975.7445

Visit us online at StanleyMartin.com and find your new home today!

MHBR No. 3588 | *Prices, features and availability subject to change without notice. Photos used are for illustrative purposes only. See our Neighborhood Sales Managers for more details.