Exclusive: National homebuilder acquires land west of Houston for new community
LGI Homes Inc. (Nasdaq: LGIH), one of the nation’s largest homebuilders, is planning to develop a new residential community west of Houston.
The Woodlands-based homebuilder has acquired 281 acres near the intersection of FM 529 and FM 2855 in Waller County, just north of Katy. The undeveloped site is about seven miles west of Elyson, a new 3,600-acre master-planned community being developed by San Diego-based Newland Communities near the Grand Parkway and FM 529.
The all-cash deal closed Oct. 31 for an undisclosed price. ARA Newmark Houston, led by executive managing director Tom Dosch, represented the seller, Avex Group, a Dallas-based land investment firm.
LGI Homes plans to develop 1,000 home sites on the property, Dosch said. The homebuilder plans to build homes for frst-time and move-up buyers, likely priced below $300,000, he said.
“That part of the market in the single-family space has remained pretty strong,” Dosch said. “High-end homes — $750,000 to $1 million plus — have really slowed down in sales.”
LGI Homes plans to start developing the site as soon as possible, Dosch said. Many Houston homebuilders are still looking to buy lots during the oil slump, but not many lots are available. So, some homebuilders are looking to purchase land and develop home sites, he said.
LGI Homes’ yet-to-be-announced community — several miles north of Firethorne in Katy — will be one of the western-most residential projects in Houston. Homes in the new community will be zoned to Royal Independent School District.
“This is obviously pretty far out, but Houston is growing so far west that even in a downturn, LGI is willing to kick this development off,” Dosch said. “The Grand Parkway has made development farther out make sense. It’s defnitely been a game changer. It’s opened up that part of town.”
ARA Newmark is now marketing two other tracts of land owned by Avex Group totalling 602 acres near the LGI Homes site. Several buyers; including residential and commercial developers, investors, schools and even a cemetery; have already expressed interest in the property, Dosch said.
Paul Takahashi – Reporter
Houston Business Journal