M/I Homes has entered an agreement to purchase Detroit-based Pinnacle Homes. The transaction will close in March. Pinnacle now controls more than 1,000 home sites and delivered 214 homes last year.
Terms of the transaction were not disclosed.
"We believe this acquisition represents an excellent strategic fit for M/I Homes and further enhances our market position with a well-established operation and land position in a dynamic and growing housing market," Bob Schottenstein, president and CEO of M/I Homes, said in a statement.
The move expands the footprint of M/I Homes into Michigan, where it lacks a market presence. Pinnacle was founded in 2005 by Howard Fingeroot and steve Friedman. The Bloomfield Hills, Michigan-based homebuilder works primarily in upscale homes.
Fingeroot, Pinnacle's managing partner, will join M/I Homes as an area president and will oversee the Detroit market.
"Howard brings with him nearly 25 years of homebuilding experience, knowledge and expertise and will capably lead our operations in this exciting market. We welcome Howard and his team to our company," Schottenstein said.
In its annual report released this month, M/I Homes said it saw a record net revenue of $1.96 billion, almost all of which came from home sales. It delivered 5,089 homes last year and has 28,500 lots under control at the end of the year. It's now marketing homes for sale in 188 communities in 15 markets.
In its latest earnings outlook, M/I estimated it would spend $550 million to $600 million on land purchases and land development this year. The company develops homes in the $170,000 to $1.4 million price range and has constructed more than 105,000 homes since its founding in 1974. It has 1,238 employees.
Zelman Partners served as advisor to Pinnacle Homes in the transaction.