Buyers and cities alike wanted big homes on big lots, yet Garbett's specialty was in smaller, affordable townhomes with no yards.
Fast forward to 2008. Several years of strong price gains in the real estate market have left ownership and that big-home big-yard dream firmly out of reach of more Utah families. Those who are budget-conscious are not only open to the idea of townhome living, but embrace the "maintenance-free" lifestyle. And more cities are looking to "attached" housing as a solution to the problem of a dwindling supply of developable land.
That puts Garbett Homes, with its focus on townhomes priced at less than $200,000, in a very good spot at a very bad time. The company is on track to sell 350 units this year, which would make it one of the state's top builders in terms of number of units sold.
With affordability now such a key issue, a number of builders are shifting their focuses to attached housing, such as townhomes and condos. Bryson Garbett, owner of the privately held company, is enjoying a more-than-a-decade head start and making a mark, not only in the industry but in the community, quietly, through his philanthropic efforts.
"He staked out territory early and established market share that carries him through to now," said Dan Lofgren, a Utah developer of condominiums and apartments. "He has a pretty-well-refined process at this point. Others have come into this market, but he continues to do well."
Garbett Homes has is building such projects as the Summerlane at the District, just off Bangerter Highway near 11400 South in South Jordan.
There, even before a model home is completed, buyers are under contract to purchase 64 townhomes - about one-quarter of the first phase - at selling prices from $149,900 to $215,000.
Garbett also is building in the Daybreak development in South Jordan, in Farmington in Davis County and in West Valley and Sandy.
Garbett, 54, who founded his company in 1988, started out in the building business as a framer at age 18. After graduating from the University of Utah with a bachelor's in history, he worked with his brother building apartments. He later got into condominiums in the late 1980s and then later, into townhomes.
In the late 1980s and early 1990s, Garbett found a market not exactly receptive to builders of "attached" homes. It wasn't unusual then for people living in single-family areas to emotionally speak out when condominium, townhome or apartment projects were proposed, calling the multifamily developments unwanted additions to their communities.
"The attached market was a four-letter word here for quite a while," said Eric Allen of Metrostudy, which tracks the homebuilding industry. "There was a stigma attached. Everything was large lot-type stuff."
Garbett decided early on that he didn't want to build cheap townhomes. He said he has constantly tinkered with the interior and exterior design of his units, which range from about 1,200 square feet to more than 2,000 square feet, much like furniture giant IKEA has done with its innovative designs of lower-priced furniture.
He wanted his communities to hold up to the test of time. And he wanted them to be cool, desirable places to live - not the last resort for people who couldn't afford better.
"Our philosophy has always been to provide innovative homes that are attainable to first-time buyers," Garbett said.
Although some of its earlier developments, such as Farmington Crossing in Davis County, don't appear particularly innovative, later developments, such as one in West Valley, do.
Built in clusters of four or six units, the west-side Arbor Square development avoids the visual of condos stacked in rows, one after the other, achieving a village-type look and feel.
Garbett and his team of 28 administrative employees also have worked to project a "coolness" in the company's developments through not only design but an advertising and marketing campaign made up of stunning visuals.
Ultimately, it is the affordability of Garbett's townhomes that make the sale. Many renters will pay the same or only marginally more in mortgage payments on a Garbett unit than they pay in rent.
In the past year, a focus on the first-time buyer has paid big dividends for Garbett in one important way that gives him an advantage over other builders.
Unlike move-up buyers, first-time buyers don't have to sell another house before they can buy another. They often are moving out of apartments, basements or even their parents' homes.
"Because they don't have to sell an existing home, we are somewhat immune to market conditions," said Rene Oehlerking, Garbett's marketing director.
In many ways, Brandon and Sara Moore, who married about a year ago, are typical buyers at Garbett Homes, and are part of the reason the builder is doing so well in a down market. The couple qualified to buy their first home, but they couldn't go above $200,000.
A number of builders have few, if any, single-family detached homes in that price range. And in many areas, $200,000 isn't going to buy any type of home - used or new.
The Moores gravitated to Garbett Homes, where they had a number of choices. After visiting two subdivisions, the couple recently signed a contract at just under $200,000 to buy a two-bedroom, 2 1/2 -bath townhome in South Jordan set for completion in September or October.
The Moores could have bought an existing home, but like many of Garbett Homes' buyers, they like the idea of something new. "This way there's nothing to fix up," said Sara Moore.
Like other Garbett Homes buyers, the Moores got their mortgage through Garbett Mortgage, an affiliate. The company also has a property management and real estate brokerage affiliate intended to capture revenue from customers who want to either rent out their units or sell their units down the line.
But building remains Garbett Homes' core business, and it is rapidly expanding in that area. Two years ago, the company went beyond Utah with a project in Mexico City and another in Kansas City, Mo. Today it also is building in Wyoming, and projects are planned next year in Idaho and New Mexico.
Although the development in Mexico is the company's first foray internationally, it isn't Bryson Garbett's first exposure to Mexico.
His family - wife Jan and eight children, ages 16 to 29 - have a history of philanthropy in that country. His son, Sam, attends the same high school in Mexico City that sister Ann attended. Garbett has a foundation to help needy children in rural areas in Mexico attend high school. "If they have a good education, they are more likely to be able to go to college," Garbett said.
The Garbetts' philanthropy extends beyond Mexico. Jan and another son recently returned from Iraq, working for a nonprofit foundation designed to help women.
For Garbett, the ability to give to others is one of the most important benefits of his company's success. "For many years, we just survived. Now we can do more."
But it's tough to get Garbett to open up about what others consider his extensive charitable efforts.
"He does a lot of good in the community and he does it very quietly," said Stella Allen, executive director of the Salt Lake Valley Habitat for Humanity. "He's not the guy who wants his name on the building. We don't have enough of those kind of people."
Garbett also has served on the Habitat board for five years, most recently as president.
Allen said that in the past six years he has provided enough property for Habitat to build homes for seven families. "Property is so hard to get - it's a tremendous gift," she said.
Success also has afforded Garbett, who ran unsuccessfully in 2006 for a state Senate seat, the ability to act on other opportunities, such as buying an old mansion near the State Capitol and turning it into not only his new home but his company's corporate headquarters.
For years, his company and most employees operated out of the basement of his Sandy home.
Then one day, while picking up calendars at the Utah Travel Council offices just south of the Capitol, Garbett said he saw a "For Sale" sign on the Wolfe Krest Inn, a bed and breakfast formerly operated by Karl Malone and wife Kay before it was sold to another company.
Garbett and his wife decided to buy the property, calling the top two floors home and using the bottom floor for his corporate offices. They have since embarked on an effort to renovate the interior and exterior.
He is getting a great deal of satisfaction from watching his new home and new office come together, but more than anything he appreciates the recognition his company is getting for its work in designing creative, affordable solutions for Utah families.
"We've worked hard. And I think we've really changed the way people think about 'attached' housing."
lesley@sltrib.com


