HOUSTON – (Realty News Report) – The Houston-based MHI-McGuyer Homebuilders Inc. firm is being acquired by Dream Finders Homes of Jacksonville, Fla. for $475 million.
McGuyer, which builds in Texas under the Coventry Homes brand, ranked No. 37 in the nation last year with 2,082 closings in 2020, according to Builder 100 rankings. The average sales price was $441,779.
In Houston, MHI-McGuyer ranks #11 with 1,194 starts in the Houston market for the 12-month period ending June 30, 2021. Home sales have been strong in Houston.
Founder Frank McGuyer: “Proud” of 30 Years of Building
Frank McGuyer, founder of MHI, said, “I am extremely proud of the businesses we have built over the last 30 years. My strategic priority in identifying a merger partner was to ensure that our people and the Coventry brand would have the opportunity to continue to grow post-merger. DFH has a proven track record of growth and will be looking to the leadership of the Coventry team to build the combined company into one of the largest home builders in Texas.”
M&A activity is a strong trend in the home building business, as builders see that buying another firm is an effective way to obtain lots and talent, said Houston housing analyst Lawrence Dean of Zonda.
Japanese Firm Buys Another Houston Builder
Last month Japan-based Daiwa House announced its purchase of an 80 percent stake in CastleRock Communities, a Houston-based home builder, for $400 million. CastleRock, which builds in Houston, Austin, Dallas and San Antonio, sold 926 homes in Houston over the last year. It is ranked as the 17th largest builder in the Houston area, according to the second quarter Zonda report.
Daiwa House is not standing still. Last week it was announced Florida-based Avex Homesis becoming part of the Daiwa organization. Avex, which has 300 homes under construction in Florida, controls 4,400 lots in Orlando, Tampa and Daytona. Daiwa’s Stanley Martin Homes subsidiary is acquiring Avex.
Sept. 21, 2021 Realty News Report Copyright 2021
Photo credit: Ralph Bivins, Realty News Report Copyright 2021
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File: Major Houston Builder Acquired
File: MHI, McGuyer Homebuilders Inc. Major Houston Builder Acquired by Dream Finders Homes. Zonda. Daiwa House. CastleRock Communities.