Growth through acquisition shows no sign of slowing down as major builders look to strengthen their positions in key markets and to expand into new markets. The strategy also is driven by builders’ need to acquire lots, both raw and finished, to feed their development pipelines, now and in the future.
LGI Homes and Landsea Homes scored two of the most recent acquisitions with LGI buying the real estate assets of Minneapolis-based KenRoe, Inc. and Landsea closing on its purchase of Vintage Estate Homes. Through its deal, LGI gained control of 85 homes under construction, 130 finished lots and 390 lots either raw or under development. It also acquired control of about 2,500 raw, undeveloped lots for future construction. Landsea, meanwhile, secured positions in the Florida and Texas markets, and gained access to more than 1,800 owned or controlled lots. LGI Homes has acquired the real estate assets of Minneapolis, Minnesota-based KenRoe, Inc., a privately held homebuilder and land development company, for approximately $27 million at closing, subject to post-closing adjustments. KenRoe is recognized for building quality homes targeted at entry-level buyers. The acquired assets include approximately 85 homes under construction, 130 finished lots, and 390 lots either raw or under development. Additionally, LGI is acquiring control of approximately 2,500 raw, undeveloped lots that will be available for future sales as the Company continues to expand its operations throughout the Minneapolis market. Eric Lipar, Chairman and Chief Executive Officer of LGI Homes said, "We are pleased to add KenRoe’s valuable portfolio of land and their experienced and dedicated team to the LGI Homes family. This opportunistic purchase complements our existing positions while expanding our geographic presence and product offerings, in the highly attractive and growing Minneapolis market." KenRoe Owner and CEO, Kent Roessler, said, "LGI Homes is a perfect fit for our company. LGI sets a high standard with an outstanding reputation, a profitable business model, and an experienced management team which align with the vision we have at KenRoe. Our combined operational excellence will allow for continued growth in the Minneapolis market." Builder Advisor Group LLC served as financial advisor to LGI Homes. JTW Advisors LLC served as financial advisor to KenRoe. Landsea Enters Florida & Texas Landsea Homes Corporation has closed the purchase of Vintage Estate Homes, a Florida-based homebuilder with communities in Florida and Texas, for $54.6 million in cash. "We are very pleased to finalize this transaction and gain immediate size and scale within Florida and Texas, two key markets with strong housing fundamentals," said John Ho, Chief Executive Officer of Landsea Homes. "This acquisition is another step forward in our strategic expansion plans to create sustainable communities in highly-desired locations across the United States.” "The Vintage Estates Homes team is renowned for providing superior homes at best-in-class value with exceptional customer service. This is a culture and approach very similar to ours, so the transition to our Landsea Homes brand in these important markets should be very seamless.” Vintage Estate Homes has earned a reputation for building great homes at great value, outstanding design and for building lasting relationships with their customers. It currently has new home communities in high-growth markets in Florida, including Orlando, Palm Bay and Melbourne, as well as Austin and San Antonio in Texas. For the twelve months ended December 31, 2020, Vintage Estate Homes generated $157.1 million in revenue, delivering 405 homes (including build on your own lot) with an average sales price of $387,000. The acquisition adds 1,815 owned or controlled lots and increases Landsea Homes' backlog as of December 31, 2020, by 405 homes. In California, Landsea had 1,766 lots and 242 homes in its construction pipeline at 2020 year’s end. And It just announced plans to build in 187 new homes in Anaheim and San Juan Capistrano. At year-end 2020, Landsea controlled 4,864 lots in Arizona where it has an order backlog of 508 residences. Much of that inventory comes from last year’s purchase of Garrett Walker Homes, a Phoenix based builder. With the closing of this transaction, Vintage Estate Homes employees are becoming part of the Landsea Homes team. Builder Advisor Group represented Vintage Estate Homes as its broker in this transaction. "Today is a monumental day for Vintage as we join the talented Landsea Homes team and bring their great company to Florida and Texas," said Scott Buescher, President of Land and Operations at Vintage Estate Homes. "Their veteran homebuilding leadership group is impressive, as is their forward-thinking vision, deep commitment to a culture of character and integrity, and unmatched customer service. It's easy to understand why they have become the homebuilder of choice in each of their markets." In eight years, Landsea Homes has grown into one of the premier national homebuilders, with a strong and successful presence in each of their key markets, including Arizona, Northern and Southern California, and now, Texas and Florida – all of which are strategically positioned to continue to grow into the foreseeable future. In 2020, Landsea Homes' net new home orders increased 294%, and total homes delivered increased 156%, over the previous year. Ho concluded, "Our mission is to create a best-in-class homebuilding company that is a great place to work and delivers an unprecedented customer experience, including expanded affordability and technologically-enhanced housing options to our homebuyers. Vintage is a perfect fit for this mission and we are thrilled to join forces." For complete contact information for more than 13,000 of the top personnel at LGI, Landsea Homes, Vintage Estate Homes, Garrett Walker Homes and the other leading 300 U.S. homebuilders including all corporate and division contacts, go to The National Builders Directory and Online Database. Contact us today for your free sample copy.
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