A Florida-based homebuilder has expanded into one of the fastest-growing housing markets by acquiring another firm.
Dream Finders Homes secured the assets of Stockbridge-based Liberty Communities, including its homebuilding operations, manufacturing facilities and component import businesses, the Atlanta Business Chronicle reported.
The buyer financed the acquisition using available cash and borrowing from its existing senior unsecured revolving credit facility. At the same time, the company settled Liberty’s vertical lines of credit linked to the acquired assets. Zelman, a Walker & Dunlop Company, acted as the exclusive financial advisor to Liberty Communities for the transaction.
The deal integrates Liberty’s Atlanta-based communities into DFH’s national holdings, along with its properties in Greenville, South Carolina.
The purchase of Liberty’s offsite manufacturing and component import businesses also brings cost and operational efficiencies to its existing markets, positioning DFH for future expansion into other markets.
“This transaction gives us a running start to build Atlanta into one of the top markets for DFH,” said Patrick Zalupski, chairman and CEO of the Jacksonville-based developer.
Founded in 2008, it specializes in residential communities for families and active seniors while offering mortgage financing and title services. DFH has sold over 31,000 homes across 10 states.
Redfin ranked metro Atlanta as one of the five most valuable housing markets last year, but the region has its share of challenges, including a significant squatter problem. The National Rental Home Council estimates that roughly 1,200 homes in the area have had recent squatters, more than in any other city the organization tracks.
Affordability is a major concern, with average rents increasing 34 percent since the beginning of the pandemic. The market is experiencing slight improvements due to wage growth outpacing housing costs. Nevertheless, the area is still facing a housing deficit of up to 100,000 homes, contributing to ongoing challenges for potential homebuyers.
— Andrew Terrell
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