Alignment: Inside The Drees Homes And Monticello Homes San Antonio Deal

In business, some of the most consequential decisions are years in the making —even if they don’t look like it initially.

For Wayne Moravits, founder of Monticello Homes, the seeds of his decision to sell the company he built over 31 years were planted long before he ever considered an exit. Monticello and Drees Homes once competed for buyers in the same high-end communities in San Antonio and Austin, but the rivalry wasn’t what left an impression.

Instead, Moravits came away with a quiet but growing respect for how Drees ran its business, treated its people, and built homes — bedrock values that, years later, would make them the right buyer when it was time for Monticello to transition.

Through those several years, at least three years that we competed with Drees, I got to know leadership," Moravits said. "I did not meet one person who wasn’t a pleasure to work with or talk to. And I’m very much a relationship guy—so that resonated with me."

That deep respect became the foundation for one of San Antonio’s most significant homebuilding M&A transactions, in which privately held Drees Homes acquired Monticello Homes in January 2025. The deal reflects both companies’ priorities: Drees’ strategic expansion in high-growth, high-end housing markets and Monticello’s commitment to ensuring its legacy, employees, and homebuyers remained in good hands.

A Decision Rooted in Legacy, Growth, and the Right Fit

Founded in 1994, Monticello evolved from a boutique custom homebuilding company into a luxury move-up production builder, blending high-end craftsmanship with the efficiency of scaled operations. After three decades of success, Moravits knew that transitioning the company would be one of the most important decisions he’d ever make.

Selling a business you built isn’t just about financials—it’s about people, culture, and making sure the brand stands the test of time," Moravits said.

In 2024, he began working with Tony Avila and his team at Builder Advisor Group to identify a buyer that would align with Monticello’s team and culture. Moravits made it clear from the start that any deal had to prioritize his employees’ future and the continued success of Monticello’s signature design and quality standards.

Drees Homes, a 96-year-old, family-owned company, fit the bill. The Cincinnati-area-based builder had long maintained a strong position in the move-up segment, designing homes that balanced customization and scalability — a shared philosophy with Monticello.

We’re not the big pure production company, but we’re definitely not a custom homebuilder anymore either," Moravits said. "We landed in a space where we offered a curated, high-design experience within a production framework. That approach worked for our customers and was a key reason Drees saw the fit."

For Drees CEO Tim Terrell, the acquisition aligns with the company’s long-term growth strategy of scaling efficiently while maintaining the brand’s reputation for quality and customer experience.

We practice effective risk management and structure our deals in a way that lets us endure market cycles," Terrell said. "The move-up buyer is our core focus, and Monticello’s design philosophy fits perfectly within our vision."

San Antonio, the Move-Up Market, and What’s Next

San Antonio has long been one of Texas’ most stable homebuilding markets —offering growth without the wild swings of Austin or Dallas-Fort Worth. That steady demand for higher-end homes made Monticello and Drees natural competitors for move-up buyers.

One thing I enjoy about the San Antonio market is that the cycles aren’t as steep," Moravits said. "It doesn’t swing as wildly as some other places, so there’s a little more predictability. But the biggest challenges ahead are the same as always: land, lot opportunities, and infrastructure."

Land acquisition — especially in premium locations — will be a key part of how Drees integrates Monticello into its Texas operations. Moravits will remain active in the business for at least the next year, helping with land acquisition, product positioning, and integration into Drees’ operational systems.

My job is to help with this transition—open doors, help with development partners, and make sure this works for everyone involved," Moravits said. "Drees has fully embraced our team, and that was a huge part of what made this deal right."

Drees Homes, which aims to expand from 2,400 to 4,000 units annually by 2028, views the acquisition as a scalable growth play rather than a simple market expansion. San Antonio fits into Drees’ broader move-up home strategy, which leverages regional expertise and long-term risk management.

We have to continue to be innovative and lead in technology," Terrell said. "We’re taking calculated risks, using data, and executing on our centennial strategy to grow smartly. But at the heart of that strategy is the same thing that’s always been true: get the product and the people right."

The Broader M&A Landscape in Homebuilding

The Drees-Monticello deal is just one example of a larger wave of M&A activity that has accelerated over the past 18 months. Homebuilders—especially private, family-owned firms—are facing a crossroads moment:

• High borrowing costs and land scarcity are making it harder for smaller operators to scale.
• Public and large private builders are using their capital advantages to expand through acquisitions rather than through organic land purchases.
• Cultural fit is becoming a key factor in deals—especially as founders of long-standing companies look for buyers who will uphold their brand’s reputation.

I wanted a buyer that saw Monticello not just as a business but as a team, a legacy, and a philosophy of homebuilding," Moravits said. "The Drees team understood that from day one."

What’s Next for Monticello Under Drees?

As Monticello’s homes, design approach, and team integrate into Drees’ San Antonio operations, the question remains: What will change?

For homebuyers, not much — at least not in the immediate term. Monticello’s communities will continue under the same branding, and customers can still expect the high-touch service and curated product experience that built Monticello’s reputation. Behind the scenes, however, Drees will bring operational efficiencies, better technology, and a larger-scale approach to land acquisition and development.

We’re not losing what makes us special," Moravits said. "We’re gaining the backing of a company that knows how to grow responsibly while keeping its core values intact. That’s a win for our people and our customers."

For team Drees, the deal is part of a bigger playbook—one that combines the best of private homebuilding culture with the scale and structure of a multigenerational operator.

What we do isn’t easy," Terrell said. "Trying to do customization and personalization better than anybody is hard work, but we have a unique set of skills and a team that can deliver. That’s what sets us apart—and that’s why this deal makes sense for the long haul."

More Than Just a Deal

At its core, the Monticello-Drees acquisition isn’t just about market share or land positions. It’s about long-term continuity, leadership, and the future of homebuilding in high-growth markets like San Antonio.

For Wayne Moravits, the deal represents trust and stewardship — an assurance that what he built will continue, backed by a company that understands the importance of legacy.

For Tim Terrell and Drees Homes, it’s a calculated step forward in a homebuilding environment where being the builder of choice — for customers, employees, and acquisition targets alike — matters more than ever. In fact, it's a three-generational pillar of the business, still led, in a high-level, strategic vision sense, by CEO David Drees.

David’s role is invaluable — he remains deeply engaged in the culture and talent development side of the business, which has always been a cornerstone of Drees Homes’ success," Terrell says. "He’s also staying closely involved with our land committee, ensuring that our long-term growth strategy remains disciplined and well-executed. His experience and steady leadership continue to be a guiding force for all of us."