Eastwood Homes’ acquisition of Virginia Beach-based Napolitano Homes may look, at a glance, like just another local-market expansion move by a Southeast regional private builder.

But this one’s different. The move represents the combination of two 1977-founded, family-owned, mission-driven companies whose legacies are written in their people, their craftsmanship, and their local reputations. It’s also a signal that the M&A wave sweeping through U.S. homebuilding isn’t only about public builders gobbling up smaller firms.

Sometimes, it’s about legacy, succession, and values aligning across generations.

A Cultural Fit 48 Years in the Making

The fit is perfect for us,” says Eastwood Homes President Clark Stewart in the announcement. “Napolitano Homes prioritizes family first right alongside their dedication to quality craftsmanship of their homes, and that is exactly how we do business here at Eastwood Homes. It’s an easy decision—and one that I am very proud and excited to be a part of.”

Eastwood’s CFO Kevin Hutchins reinforces that the relationship is as much about shared values as it is about market expansion.

The cultural fit between Eastwood and Napolitano Homes is perfect,” says Hutchins. “They’re family-first focused. That’s exactly how we’ve always operated. Their concerns about how their team would be treated—that’s where we connected immediately. It has to be a values match for this to work.”

Tony McGill, Senior Managing Director and head of Investment Banking at Zelman & Associates, served as the exclusive sellers' representative in the deal.

Legacy Meets Scale in a Shifting Competitive Landscape

For Vincent Napolitano, who co-founded the company with his father in 1977 and now leads the third-generation team, the decision is strategic and deeply personal.

Eastwood checks every box,” says Napolitano. “They’re private, family-run, and share our values and commitment to integrity. We’ve known them for 15 years through our Builder 20 Club. When we decided it might be time to sell, I picked up the phone and called Clark Stewart myself.”

Why now?

Napolitano doesn’t mince words.

We saw the landscape changing. Public builders now account for more than 54% of new home sales. D.R. Horton is here, Lennar is trying to get in. We’re not a small company—we do up to 200 homes a year—but the competitive pressure and financing risk keeps rising.”

At age 70, Napolitano is also thinking about generational transition.

My son and two nephews are in the company. My brother Fred has two sons in as well. We wanted a future for them. Eastwood’s team and leadership made it clear that they’re invested in helping the next generation grow. That means everything.”

Why Hampton Roads? Why Now?

The acquisition adds a 10th division to Eastwood Homes’ growing footprint, and its second in Virginia, following its Richmond operations. Hutchins says Hampton Roads is a logical, high-potential next step.

It’s a vibrant, growing market,” he says. “There’s a lot of migration from the Northeast, people relocating thanks to remote work, and a diversified economic base. It’s not a volume-heavy target for publics, which is fine for us. As a private company, we focus on quality, not just units.”

He adds that Napolitano’s reputation is unmatched.

The attorneys we worked with during the deal—their first comment was, ‘When the Napolitanos say they’ll do something, they do it.’ That kind of local reputation is gold. We want to build on it, not change it.”

Product Complementarity: From Quads to Custom Appeal

One of the reasons Eastwood moved quickly on the opportunity is Napolitano’s complementary product offering.

They have some condo and quad products we don’t offer,” says Hutchins. “It allows us to reach different buyer profiles. We’re looking at potentially bringing some of those products into Richmond—and sharing some of ours in Hampton Roads.”

Napolitano agrees.

We’ve done everything from $2 million Chesapeake Bay condos to first-time buyer townhomes. But I’m excited to see Eastwood’s top plans in that 2,000–2,500 square foot range. We’ll use whatever works best. No pride of authorship—we want to deliver what buyers love.”

Continuity of Team, Identity, and Mission

The combined company will keep the Napolitano Homes name in place. Vince Napolitano will remain in charge of the Hampton Roads division. Hutchins says the playbook is based on what Eastwood learned from its successful acquisition of Fortress Homes in Columbia, South Carolina.

We focus on employee integration and growth,” he says. “Most of the Fortress team is still with us today. We don’t come in to strip it down. We build on what’s there.”

Napolitano says that commitment came through loud and clear.

They brought a dozen of their people to our office last Thursday and spent real time with our team. Everyone mingled, everyone connected. That matters. Culture matters.”

Strategic Growth at a Time of Caution Elsewhere

As high interest rates, inflation, and cost pressures reshape homebuilding economics, Eastwood’s deal positions it to play offense while others stay cautious.

It gives us 125 more closings this year, and more over time as new communities come online,” says Hutchins. “In this environment, volume supports positive cash flow even with compressed margins.”

Napolitano adds,

Eastwood has the financial strength to land bank, which we couldn’t do. That gives us staying power and future opportunity.”

Advice to Private Builders Thinking About Selling

Napolitano is candid in his guidance to other owner-operators facing similar decisions.

Don’t just sell for the sake of selling. That’s a recipe for disaster. Do your homework. Find a buyer whose values match yours, who cares about your people, and has a track record of integrity. We were lucky—we knew Eastwood. But we also made a conscious plan.”

Final Thought: A Next Chapter That Feels Like Home

The story of Napolitano Homes and Eastwood Homes coming together isn’t just about market expansion. It’s a case study in how values, legacy, and strategy can align to create a stronger whole.

Napolitano says,

This is as close to a perfect match as you can get. Our team feels that, and so do I.”

Hutchins echoes the sentiment.

We’re not just acquiring land and product. We’re welcoming a family into ours. That’s how we grow—and that’s how we win.”