A. Lee Graham
BR Homebuilding Group LP, a newly formed holding company founded by longtime homebuilding veteran Bobby Ray and based in Plano, has acquired Austin-based Scott Felder Homes.
Providing some of the acquisition financing is Grapevine-based United Development Funding IV, a residential development finance real estate investment trust (REIT) that provides capital solutions to homebuilders and developers. It provided its part of financing through a note that can be converted into an equity interest in the homebuilder.
In the 12 months ending Dec. 31, 2014, Scott Felder Homes is expected to have revenues totaling about $130 million on 265 home closings. The firm owns or controls more than 1,000 finished lots.
“Participating in the acquisition financing with BR Homebuilding Group allows UDF IV to remain focused on its core lending business, while the conversion feature also provides our shareholders the potential upside of a homebuilder investment,” said Stacey Dwyer, chief operating officer with the Grapevine firm, commenting in a news release.