Fast-growing LGI Homes is planning its fourth Orlando-area residential community, designed and priced to appeal to first-time homebuyers.
The Houston-based homebuilder has 76 acres in Davenport under contract, just north of Ridge Community High School. Alex Azan, land manager for LGI, is scheduled to meet next week with Polk County planners to discuss plans for a 364-lot subdivision.
"We like the site," Azan told GrowthSpotter. "It has good access to U.S. 27, and it's a growing area."
Orchid Groves would consist of 50-foot lots and may be developed in two phases. Amenities could include a soccer field, basketball courts, gazebo and tot lot, Azan said.
LGI is actively selling homes in Davenport in a community called Highland Meadows II where prices start at below $180,000. The publicly traded company relies exclusively on sale of inventory homes as its sales model.
"We actually will build inventory, and we'll have homes ready to move in," Azan said. "People can tour them -- we'll have 4 different models -- and if a customer finds something they like, they can move in within a month. We find by keeping it at that level, we're able to offer a better price and the home is move-in ready."
The community will offer three-, four- and five-bedroom homes, all with two-car garage, appliances, custom cabinets and granite counters included. Landscaping and irrigation also come standard.
The builder typically has about four to six spec homes available for sale once the community goes active. LGI offers quick closings and no-money down financing plans. "We get a lot of renters – they have a sense of urgency. Their lease might be up in 30 days."
The company's average home sale price is below $200,000, but LGI doesn't even post the home price on its website. Instead it lists the monthly payment, to give buyers a direct comparison between renting and buying.
Founded in 2002, LGI is publicly-traded on the NASDAQ and currently builds and sells homes in 11 states. As of the end of August 2016, the company had 59 active selling communities.
LGI ended the first eight months of 2016 with 2,661 home closings, a 23.5 percent increase over 2,155 home closings during the first eight months of 2015, according to financial reports.
CEO Eric Lipar told investors he anticipates closings for 2016 to be between 4,000 and 4,300 homes nationally. The average home price has increased by more than $11,000 over 2015 pricing.