Texas LGI Homes Acquires More Land to Fuel Fast Growth

Categories: Canyon Crossing, LGI Homes, News, San Antonio

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

By: Teresa Burney, Builder Magazine
 
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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
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