In a story first reported by BUILDER Magazine, Brookfield Residential officially announced it has bought Austin-based builder Grand Haven Homes.
With the purchase, Brookfield gets control of 15 active selling communities and approximately 700 lots. Since its founding in 2006, Grand Haven has closed 780 homes, according to Metrostudy. Brookfield wouldn’t return multiple inquires by BUILDER for comment.
After slowly building up in the late 2000s, Grand Haven crossed the 100-home threshold in 2012 with 119 closings (average price $349,239). In 2013, it closed 126 homes and in 2014, it closed 156. Those closings gave Grand Haven 2.12 and 2.97 of the market share in Austin.
Michael P. Kahn & Associates represented Grand Haven in the deal, the 107th career mergers and acquisitions career transaction for the eponymous firm led by Mike Kahn.
In the last two years, its average closing price moved from $379,361 to $390,729. So far in 2014, the builder closed 14 homes at an average cost of $421,646, according to Metrostudy.
"The acquisition of Grand Haven Homes brings us an experienced home building team and enables Brookfield Residential to increase our presence and capabilities in the Austin market," said Don Merlo, Chief Operating Officer in Arizona and Texas for Brookfield Residential in a press release announcing the sale. "We are enhancing the more than 13,000 lots that we currently control in this market and building on the progress made by our land development division in bringing exciting new communities to market. This is an ideal time to ramp up our home building operations and with the many synergies to be realized from this transaction, we are well positioned for growth in Austin."
Brookfield’s press release seems to indicate that Eric Rome, Mike Beckett, and Shay Brinkley, principals at Grand Haven Homes, will be staying on board.
“We are excited to join the Brookfield Residential team," said Eric Rome, Mike Beckett and Shay Brinkley in a joint statement in Brookfield’s press release. “Our expertise, reputation and innovation as a homebuilder in the market aligns well with Brookfield Residential's strategic vision to grow its homebuilding presence in the region.”
Brookfield Residential also announced that it recently gained final approval to begin construction of its second master-planned community, called Addison, in Austin. Additionally, it has preliminary approval for the first phase of Easton Park, its third master-planned community in the region.