Landsea Homes Corporation completes its acquisition of Hanover Family Builders (HFB), an Orlando-based homebuilder for a purchase price of $179.3 million, subject to certain post-closing adjustments plus the assumption of debt of approximately $69.3 million, which was refinanced with the Company's unsecured revolving credit facility.
In 2021, Hanover closed 632 homes at an average selling price of $328,323 and ended the year with more than 4,100 lots under control, 469 homes in backlog worth more than $200 million and 18 active communities. "In 2021, Landsea Homes surpassed the milestone of $1.0 billion in revenues and completed our first year as a public company. We believe our acquisition of Hanover Family Builders is another truly transformative event for the Company," said John Ho, Chief Executive Officer, Landsea Homes. With the closing of this transaction, the company increased its lots under control to more than 12,800 and further accelerated its asset-light strategy by increasing its controlled lots to approximately 50% of total lot inventory. It also grew its active community count by more than 50% from its December 31, 2021 year end. Founded in 2017 by brothers Matt, Steve and Andrew Orosz and homebuilding veteran Colby Franks, Hanover Family Builders began with nine communities in the Orlando region, in Osceola, Lake and Polk counties. Landsea Homes entered the Florida housing market last year, with the acquisition of Vintage Estate Homes. With that purchase, Landsea Homes began providing homes in the Orlando area, including Palm Bay, Palm Coast, Ormond Beach, Lake Helen, Sorrento, Merritt Island and DeBary. In just 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, Texas and Florida.
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This year is shaping up to be the hottest on record for the popular build-to-rent sector, as consumers priced out of the homebuying market seek more privacy and space in secondary and suburban locations.
Single-family rental construction posted its strongest year ever last year with 6,740 new build-to-rent homes constructed, according to YardiMatrix data. But this year’s supply of new BFR homes is expected to more than double that record, with 14,000 planned to open their doors in 2022. While BFR homes proliferated in the aftermath of the Great Financial Crisis, “this time it’s different,” RentCafe’s Alexandra Ciuntu says. “The pandemic created an unprecedented demand among renters for space and privacy, which houses can address much better than apartments.” A recent RentCafe survey of 3,300 renters reveals that 78% are interested in living in SFR communities. Searches for homes for rent tripled in 2021 compared to the previous year, Ciuntu says. SFR homes tend to be clustered in lower-density areas since they require significant amounts of land to develop; about 61% of all SFRs are in suburban locations. RentCafe’s survey results hewed closely to that trend, with 29% of respondents saying they would choose a SFR because they want more space, and 25% saying they want more privacy. Phoenix leads the way as the #1 metro for BFR homes, with a total of 6,420 homes in SFR communities, followed by Columbus, Dallas, Houston, and Riverside. The Phoenix metro area also leads the way in new apartment construction. The two largest build-to-rent communities of SFRs are in Las Vegas. Investors are taking note, with multiple players launching capital funds with the built-to-rent strategy in mind. In October, PEG Companies (PEG), a vertically integrated commercial real estate investment firm, launched PEG Capital Partners Fund IV, L.P., which is targeting $200 million in equity to focus on development and management of luxury BFR communities in the primary markets of Utah, Idaho, Arizona, and Colorado. Reported by GlobeStreet (January 21, 2022) |
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