LGI Homes—the No. 10 builder on the 2021 Builder 100—has acquired the real estate assets of Minneapolis-based KenRoe, a privately held home builder and land development company, for approximately $27 million at closing, subject to post-closing adjustments.
The acquired assets include approximately 85 homes under construction, 130 finished lots, and 390 lots either raw or under development. Additionally, LGI is acquiring control of approximately 2,500 raw, undeveloped lots that will be available for future sales as the company continues to expand its operations throughout the Minneapolis market.
“We are pleased to add KenRoe’s valuable portfolio of land and their experienced and dedicated team to the LGI Homes family,” says Eric Lipar, chairman and CEO of LGI Homes. “This opportunistic purchase complements our existing positions while expanding our geographic presence and product offerings in the highly attractive and growing Minneapolis market.”
Builder Advisor Group served as the financial advisor to LGI Homes, while JTW Advisors served as the financial advisor to KenRoe.
“LGI Homes is a perfect fit for our company,” says Kent Roessler, KenRoe owner and CEO. “LGI sets a high standard with an outstanding reputation, a profitable business model, and an experienced management team that align with the vision we have at KenRoe. Our combined operational excellence will allow for continued growth in the Minneapolis market.”
