Subsequent Events

3 Months Ended

Mar. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On April 21, 2022, our subsidiary, Richmand American Homes of Tennessee, Inc., entered into an asset purchase agreement ("Purchase Agreement") to acquire substantially all of the homebuilding assets of The Jones Company of Tennessee, L.L.C. (“Seller”) for a purchase price of $117.3 million, subject to the adjustments outlined below, which is expected to be paid entirely in cash. The Seller is a leading homebuilder in the Nashville, Tennessee area, and this acquisition provides us with the opportunity to quickly scale our operations and increase our footprint in one of our newest markets.

The purchase price is subject to adjustments for the amount of land being conveyed at closing, the number of land purchase contracts being assigned at closing, work in process, home closings, and other customary adjustments. The consummation of the transaction is subject to the approval of the MDC board of directors and customary conditions. We currently expect the transaction to close near the end of the second quarter of 2022.