Ryland Group Inc. announced on Monday that it purchased the operations of Trend Homes from Phoenix investment firm Najafi Investments LLC.
As part of the deal, the Westlake Village company will acquire 910 lots and homes for future sales, as well as 106 homes currently sold and under construction in the Phoenix area, where Trend also is headquartered.
Financial terms of the deal were not immediately disclosed.
“We are pleased to announce the acquisition of Trend Homes, which is consistent with our strategy of expanding into new markets that present opportunities for growth,” said Ryland Chief Executive Larry Nicholson, in a statement.
Ryland is one of the country’s largest home builders and has been doing well of late, as have other builders as the housing market recovers.
Ryland surprised Wall Street by turning a $10.6 million profit in the third quarter, far bigger than expected, on revenue that grew by nearly half to $359 million. The results were driven by a 56 percent increase in new orders.
This acquisition is the second the company has made in recent months. In July, it purchased the assets of Timberstone Homes in Charlotte, N.C.
All employees of Trend Homes are expected to be retained by Ryland, and Reed Porter, Trend’s president, will be Ryland’s Phoenix Division president.
Shares of Ryland gained 6 cents, or less than 1 percent, to close at $32.64 on the New York Stock Exchange.