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Business Combination
3 Months Ended
Mar. 31, 2018
Business Combinations [Abstract]  
Business Combination
BUSINESS COMBINATION

On April 26, 2018, the Company acquired all of the assets of GHO Homes and affiliates and acquired an 80% controlling equity interest in a newly formed subsidiary, GRBK GHO Homes, LLC (“GRBK GHO”). The previous owner of GHO Homes will continue to serve as president and will be a 20% partner in GRBK GHO. GRBK GHO operates primarily in the Vero Beach, Florida market and is engaged in land and lot development and all aspects of the homebuilding process. The acquisition allowed us to expand our operations into a new geographic market, constructing townhouses, single family homes, patio homes, and luxury homes.
The total consideration consisted of $33.2 million paid to the owner of GHO Homes, which is subject to a purchase price adjustment based on the final audited balance sheet of GHO Homes as of the closing date. The owner of GHO Homes contributed $8.3 million to GRBK GHO for his 20% interest in GRBK GHO. Under the terms of the purchase agreement, we may be obligated to pay additional consideration if certain performance targets are met for any calendar year, or portion thereof, over the three-year period following the acquisition date.
As of May 7, 2018, we had not finalized the purchase price accounting for the acquisition due to the minimal amount of time between the acquisition date and the filing of the Quarterly Report on Form 10-Q. The identification and valuation of the tangible assets acquired and identifiable intangible assets are not yet complete. In addition, transaction costs, including legal fees, related to the closing are still being incurred. During the completion of the purchase price accounting, we will also evaluate the deductibility of goodwill for tax purposes and assess the useful lives of identified intangible assets.
As of March 31, 2018, we had incurred integration costs of approximately $32.3 thousand, which have been expensed as incurred and are included in selling, general and administrative expense.