Reno's Altmann-Ott Homes discovers less is much more

As it enters 2005, Altmann-Ott Homes knows how many houses it will build 250 to 300.

In this market, the company could sell a thousand.

Clients are lined up, demand is high, the market is robust.

But Altmann-Ott executives are holding the line at 300 or fewer.

The Altmann-Ott partnership is a marriage of two long-time builders.

Fred Altmann, a master of craftsmanship design, built the first house in Caughlin Ranch more than 20 years ago, and followed that with numerous other custom-designed homes in prestigious Reno areas Montreaux,ArrowCreek, Lahontan among them.

Dan Ott, a fourth generation builder, developed largescale production homes and commercial structures in Sacramento before teaming up with Altmann in the 1990s.

As the firm of Altmann and Ott grew, Fred Altmann eased away from custom home building, focusing instead on applying craftsmanship to production homes high end as well as moderate.

"Custom design engulfs you," says Altmann, the firm's president and chief executive officer.

One of his Lahontan Truckee custom homes required crews to devote six months to the ceiling alone, he recalls.He estimates he's done 200 to 250 custom homes in Reno over his 20-year custom design period.

Altmann and Ott together have specialized in building production homes with craftsmanship details - including Cottonwood Estates in Fernley, Fairway Village at Kiley Ranch north of Sparks, and the upcoming Kiley Ranch Front Street Bungalows.

On the commercial side, the firm's projects include the Cafe Thai Restaurant and the Altmann Office Building in south Reno.

With its combination of custom homes, commercial buildings, and production homes, Altmann-Ott has been increasing production over the last few years, says Altmann, to 225 homes in 2004.

But meanwhile,Altmann and Ott agreed on a five-year plan.

They would grow the company to its current production level.

And not beyond.

"We've found that 300 homes a year is enough,"Altmann says.

And here's why: At 200 to 300 homes, the firm functions at optimum efficiency.

Building just 200 homes a year pays the bills.

The next hundred adds a bit of profit to the mix.At over 300 homes, the firm works less efficiently.

"The number 300 is a point of diminishing returns," he adds.

So,why not add staff and push that point upward? Because it does not work that way, at least not for Altmann-Ott.

"We have developed a team and we're real good at what we do," says Altmann.

Of approximately 45 employees, he can point to at least 10 Altmann-Ott workers who have come up through the ranks, starting as electricians and carpenters and graduating to project management.

That kind of team development does not happen overnight.

"It gets counter-productive to train and expand," adds Altmann, unless you want to go national.And Altmann-Ott does not.

They're northern Nevadans.

"We have a niche and we have become efficient," he adds.

Altmann is slowing down and focusing on design and the public side of Altmann-Ott.

Slowing down, however, is relative.

His company is on the verge of two huge new projects the Green Valley development in Fernley, and Canyon Edge in Caughlin Ranch in west Reno.

Then there's 1,000 acres west of Somersett in northwest Reno a 600- home development scheduled for about 2006.

Release dates for the projects work to maximize market return, but also to accommodate the company's goal of maintaining a production cap of 250 to 300 homes per year.