CHARLOTTE – LGI Homes acquired the homebuilding and land development assets and operations of R Home and other subsidiaries of KenRoe in a deal that closed on May 7, according to Charlotte-based JTW Advisors LLC.
JTW Advisors, a mergers and acquisitions advisory firm focused on the homebuilding industry, served as the financial advisor to R Home in the sale.
R Home is one of the largest locally owned single-family homebuilders in the Minneapolis/St. Paul area. LGI, headquartered in The Woodlands, Texas, is the 10th largest residential builder in the United States based on units closed. Through the acquisition, LGI will expand its presence within the Minneapolis marketplace and acquire a pipeline of more than 3,000 owned and controlled lots and homes.
“As the demand for lots nationwide far outweighs the current supply, we are seeing many national and foreign homebuilders looking to expand outside their existing footprint as well as add land pipeline within their existing markets,” JTW Advisors CEO Chris Jasinski said. “Given the long timeline required to entitle and develop raw land, builders are increasingly looking to acquire private homebuilders to accomplish their growth objectives. There is a unique window of opportunity here for these private homebuilders to sell, and the acquisition of R Home by LGI is a true reflection of the current market.”
In addition to this acquisition, JTW Advisors recently served as the financial advisor to Essex Homes in their sale to Stanley Martin Communities, creating one of the top 25 builders in America.