Dallas private equity firm Baymark Partners is making a new bet that the housing market will open up for a new generation of buyers with its latest investment.
The firm has acquired Florida’s Coastal Screen and Rail, which builds screen enclosures for pools and patios, along with other outdoor products like water features and pergolas. Baymark isn’t alone among private investors who are gambling on a resurgent U.S. housing market. An investor group led by L Catterton acquired swimming pool supplier Leslie’s last year.
Baymark was on track to raise $1.3 million for its deal, according to a recent financial filing.
Coastal Screen and Rail carries $7 million in debt and $1.5 million in equity. The company primarily does business in Fort Lauderdale, Florida, but Baymark has plans to expand its footprint throughout the Sunshine state’s housing market as it tries to bounce back from last year’s landfall of Hurricane Irma.
The number of homes sold across Florida increased 1.2 percent in 2017 from the year before, while sales in the southern part of the state fell 4.4 percent, according to Florida realtors.
Executives are eyeing the Tampa, Naples, Orlando and Jacksonville markets and expect younger home buyers will play a big role.
"We also expect that millennial home buyers and a strong 2018 economy will continue to boost the real estate market," Baymark’s managing director David Hook said in a prepared statement.
Many economists have doubted whether younger renters can purchase homes as the same rate as their parents as they deal with higher prices, tougher lending standards and the burden of mountainous student loan debt.
"We see an opportunity for significant growth by expanding residential sales," Hook said.
Dallas private equity firm Baymark Partners is making a new bet that the housing market will open up to a new generation of buyers with its latest investment: a Florida company that builds screen enclosures for pools and patios.