Texas LGI Homes Acquires More Land to Fuel Fast Growth

Categories: Canyon Crossing, LGI Homes, News, San Antonio No Comments »

In partnership with private equity, the builder buys more land in San Antonio.

By: Teresa Burney, Builder Magazine

The private builder, private equity partnership between LGI Homes and GTIS Partners has bought more land to help fuel LGI’s fast-selling growth in the San Antonio market.

The partners bought Luckey Ranch, a 93-acre parcel with 393 single-family home lots, across the street from LGI’s best-selling Canyon Crossing community, which is nearing build-out.

“You could argue that it’s an extension of its existing community there,” said Rob Vahradian, senior managing director for GTIS. He added that LGI has been selling between 10 and 15 homes a month in Canyon Crossing.

“And in their home market of Houston, [LGI is] doing double the absorptions of any other home builders,” Vahradian said.

LGI is also doing well in the Dallas-Ft. Worth market, where GTIS (formerly known as Goldentree Insite Partners) made its first investment in the company when it bought Chisholm Springs.

“[Chisholm's] pretty much hitting our pro forma numbers,” said Vahradian, adding LGI has sold and contracted to build close to 40 houses there since sales began at the end of May.

Vahradian said GTIS continues to be impressed with LGI’s business model of marketing to apartment dwellers who don’t have a house to sell and who can buy a home with a yard for what they are paying in rent. LGI uses conventional FHA, VA, and USDA financing to finance its houses for buyers with credit scores of 680 or more.

GTIS isn’t finished with its land-buying partnership with LGI. “We’re going to continue,” Vahradian said. “We are working on a few projects with them for Dallas-Ft Worth, San Antonio, and something in the Houston home base. Our original deal was a programmatic venture with them.”

GTIS is making other land-buying deals as well, not all with home builders.

“We basically are making two types of investments,” said Vahradian, “to private home builders who don’t have access to capital, who have sound business models in sound markets. And we are extraordinarily selective.” [Read the entire article.]

Source: BuilderOnline.com

J.D. Power and Associates Reports: LGI Homes Ranks Highest in New-Home Quality in Houston

Categories: Creekside Village, Houston, LGI Homes, News, Sunrise Meadow No Comments »

WESTLAKE VILLAGE, Calif.: 15 September 2010 — Trendmaker ranks highest in customer satisfaction with new-home builders in the Houston, Texas, market, according to the J.D. Power and Associates 2010 New-Home Builder Customer Satisfaction Study released today.  In addition, LGI Homes ranks highest in the New-Home Quality Study also released today.  Trendmaker is headquartered in Houston while LGI Homes is headquartered in Conroe, TX.

The downturn of the housing market—along with intensified competition for a very limited pool of home buyers—has reinforced the importance of customer focus for new-home builders,” said Dale Haines, senior director of the real estate and construction industries practice at J.D. Power and Associates. “In this buyers’ market, builders that are attentive to customer needs and focus on relationship building stand the best chance of enduring through the market recovery.”


2010 New-Home Quality Study

The J.D. Power and Associates New-Home Quality Study, now in its fourth year, measures the occurance and impact of construction problems experienced by new-home owners in 17 markets.  The study utilizes an index that measures problems in 41 categories for the following aspects: bathroom; drywall; electrical/appliances; flooring/stairs; home exterior; interior paint; kitchen; windows/doors; and other significant problems.

LGI Homes ranks highest in new-home quality in the Houston market. Home quality in the Houston market has improved from 2009, averaging 850 in 2010—up by 18 points from the previous year.

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