Wednesday, September 18, 2024

Dwight Schar’s Retirement from NVR

Dwight Schar’s Retirement from NVR

In 2022, Dwight Schar retired from NVR at the age of 80. Nonetheless, he continues to play an active role in key commercial real estate projects as a partner in two ambitious developments that are currently underway in Northern Virginia.

Having amassed a net worth of circa $2.5 billion, according to Forbes’ estimations, the real estate mogul has wielded significant influence as a civic leader and is credited with increasing educational accessibility for residents of Northern Virginia, playing a leading role in the expansion of George Mason University.

A former minority owner of the Washington Commanders, Dwight Schar is known for his modesty and privacy, with the business icon striving to keep a low profile throughout the course of his career. He became interested in the real estate industry in the mid-1960s while working as a first-semester teacher. Hailing from Ohio, the recent Ashland University graduate was purchasing his first home when the realtor marketing it offered him a job on the spot.

Dwight Schar never returned to teaching. Over the years, he steadily progressed from selling homes to developing lots, before moving onto homebuilding operations. Mr. Schar arrived in Washington D.C. in 1971 after being approached to run Ryan Homes’ Mid-Atlantic homebuilding operations. He remained in this post until 1977, when he launched his own business.

For two years, Dwight Schar was forced to leave the homebuilding industry due to contractual obligations with his former employer. He resurfaced in 1980, establishing Northern Virginia Land and Homes Co., the forerunner of the modern-day NVR. Mr. Schar diversified the company’s interests significantly in its first decade of operations, venturing into the mortgage service sector by 1984. In 1986, Northern Virginia Land and Homes Co. became a public company, with the move infusing it with sufficient capital to take over Ryan Homes, Dwight Schar’s former employer, in 1987. The move culminated in the creation of America’s largest homebuilding company in a deal worth a reported $312 million.

Ensnared in the real estate downturn of the 1990s, growth of Northern Virginia Land and Homes Co. ground to a halt. Dwight Schar admits that he was too naïve to understand that political decisions have an adverse impact on economic cycles, referencing amendments to banking laws that were implemented during the savings and loan crisis. The ensuing chain of events sadly forced the company to seek Chapter 11 bankruptcy protection in 1992.

This major setback taught Dwight Schar a critical lesson that would influence how he led operations from that point forward. As he points out, the principle of real estate is simple: buy low, sell high. However, there are two other pieces of wisdom to consider: location and holding power.

Dwight Schar explains that he had everything in place during the economic downturn, except for holding power. With banks unwilling to extend loans to the company, he learned that holding power is a critical aspect in business and just as important as location.

In 1993, NVR emerged from bankruptcy protection following a major reorganization. Dwight Schar remained at the helm of the company until 2005, when longtime employee and friend Paul Saville took over as CEO, with Mr. Schar continuing to serve as the company’s executive chairman of the board.

When Dwight Schar retired from NVR in 2022, at the age of 80, he was once again succeeded by Paul Saville, who took up the chairmanship role, with Eugene J. Bredow now serving as CEO. In 2022 alone the company generated $10.33 billion in revenue, employing circa 6,550 people. Having expanded and diversified over the years, today the company’s subsidiaries include Rymark Homes, Heartland Homes, Fox Ridge Homes, NVHomes, Ryan Homes, and NVR Mortgage.