Forestar Group Inc. (FOR), a residential lot development company and subsidiary of homebuilder D.R. Horton, is purchasing multimillion dollar parcels from the children of its parent company.

Ryan and Reagan Horton, the adult sons of Donald R. Horton, Chairman of D.R. Horton, own and control Double R DevCo, LLC (R&R).

In the three months ended December 31, 2023, Forestar acquired a tract of residential real estate from R&R for $11.3 million and simultaneously entered into a finished lot purchase agreement with D.R. Horton.

The tract was originally under contract with D.R. Horton.

Notably, Forestar included language in its latest quarterly filing that seemingly suggests the deal was done without influence from D.R. Horton:

“The Company independently underwrote the transaction and chose to close in place of D.R. Horton.”

It’s unclear to us how the deal could truly be underwritten independently as D.R. Horton owns 75-percent of Forestar.

Forestar did not immediately respond when DuDil asked whether the company paid a higher purchase price for the parcel than D.R. Horton had offered or whether it’s currently negotiating additional deals with R&R.