The developer made the investment last year, Tavistock spokeswoman Jessi Blakley told GrowthSpotter on Wednesday. The company declined to confirm how much was spent, or what percentage stake was acquired.
"Tavistock Development President Jim Zboril has been friends with Century Homes President Robert Godwin for many years," Blakley said. "Century Homes had been looking for the right capital partner to help grow the company, and we were fortunate that what started as a friendship turned into a business partnership."
Godwin remains the president of Century Homes, and oversees the company's day-to-day operations. He did not respond to requests for comment on Wednesday.
Century Homes has been building homes in Greater Orlando for more than 30 years. It's an approved builder at Somerset Park in Tavistock's Lake Nona master-planned community, and Century's affiliate brand Craft Homes recently began sales in Laureate Park.
Tavistock and Century Homes will continue to expand the homebuilder and pursue new product opportunities, Blakley said.
Tavistock benefits from bringing a homebuilder like Century Homes in-house because it provides added control over the development of Lake Nona, and additional profit per lot, according to Jeff Schnellman, president of the Greater Orlando Builders Association and managing member of Silliman CitySide Homes.
"This allows Tavistock extra control over what's built in its communities in addition to what it does through deed restrictions and architectural requirements," he said. "It affords them additional profit opportunity from both the horizontal and vertical areas of construction, and it helps them balance the inventory available in a community."
Most homebuilders are risk-averse, preferring to do pre-sales and avoiding speculative home construction when possible, Schnellman said.
"But sometimes developers will put inventory on the ground because they're in a business that is more risk-intense, and Tavistock is a firm that is extraordinarily well-capitalized with the ability to do that," he continued. "So there are (home) sales that can be made this way that would otherwise be missed."