Green Brick (GRBK) & Century Communities Buy Land in Texas
Green Brick Partners, Inc. GRBK recently purchased around 165 acres of land in Braker Valley, 15 miles west of Trinity Ranch, in conjunction with Century Communities as part of their new joint development project in Austin, TX. Both companies have been actively selling single-family homes in this community.
Century Communities is one of the United States’ largest homebuilders, an industry leader in online home sales and the highest-ranked homebuilder on Newsweek's list of America's Most Trustworthy Companies 2023.
GRBK’s latest announcement comes on the heels of its recent land acquisition in Florida’s Vero Beach to construct 78 homes in the Grand Harbor community, which is expected to start by 2023-end. The company anticipates generating attractive returns and gross margins from the community.
Per Jed Dolson, chief operating officer of Green Brick Partners, “The Austin area continues to experience population growth driven by a resilient job market and excellent quality of life, creating an influx of new families looking for affordable housing.” Given this backdrop, GRBK’s decision to expand in this market seems wise.
The new community, construction of which is expected to begin in early 2025, will comprise 598 homesites with a mix of 45-foot and 50-foot front-entry lots. Trophy Signature Homes — a Green Brick subsidiary — and Century Communities plan to split the development of the community 50-50. They anticipate commencing the sales in the third quarter of 2025.
Strategically located at the junction of Blue Goose Road and Cameron Road in northeast Austin, Braker Valley is conveniently central to downtown Austin and Pflugerville. It is also situated close to prominent commuter routes like I-35, Highway 290 and Highway 130.
The landmark offers quick access to The University of Texas at Austin, employment hubs like the Samsung Austin Semiconductor plant, and popular recreational destinations like Lady Bird Lake, Walnut Creek Metropolitan Park and Walter E. Long Metropolitan Park, making it an attractive buy for future homeowners.
Green Brick is a publicly traded, diversified homebuilding and land development company operating in Texas, Georgia and Florida. It is engaged in all aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, marketing and sales for its residential neighborhoods and master-planned communities.
The company specializes in building quality neighborhoods interwoven with the latest technological advancements. GRBK also enjoys several strategic advantages, such as a significant footprint in markets with some of the biggest job growth and best demographics in the United States, superior land and lot pipeline and diversity of its product lines, which bode well for its growth.
Shares of this Zacks Rank #3 (Hold) company have gained 17.2% in the past six months against the industry’s decline of 1.4%.
Nonetheless, a cautious investor approach amid macroeconomic activity and a high-interest rate environment is worrisome. Also, increased construction costs amid supply-chain constraints pose concerns for the company.
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Stocks to Consider
Some better-ranked stocks from the broader real estate industry are Welltower WELL, Americold Realty Trust COLD and EastGroup Properties EGP, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Welltower’s 2023 funds from operations (FFO) per share has been revised marginally upward over the past week to $3.56.
The Zacks Consensus Estimate for Americold Realty Trust’s ongoing year’s FFO per share has been increased marginally over the past month to $1.26.
The Zacks Consensus Estimate for EastGroup Properties’ current-year FFO per share has moved marginally northward over the past week to $7.64.
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