Related Party Transactions

6 Months Ended

Jun. 30, 2019

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

During the three and six months ended June 30, 2019 and 2018, the Company had the following related party transactions through the normal course of business.

Suwanee Station

In March 2016, the Company purchased undeveloped land for a 73-unit townhome community, Suwanee Station in Atlanta. Simultaneously, the Company entered into a partnership agreement with an entity affiliated with the president of TPG to develop the land for sale of the lots to TPG. Contributions and profits are shared 50% by the Company and 50% by the affiliated entity.

During the three and six months ended June 30, 2019, TPG purchased 7 and 13 lots within the community for $0.3 million and $0.5 million, respectively. During the three and six months ended June 30, 2018, TPG purchased 3 and 11 lots within the community for $0.2 million and $0.7 million, respectively. As of June 30, 2019, there were no lots remaining to be sold.

Total capital distributions as of June 30, 2019 were $3.3 million. Total distributions made by the partnership during the three and six months ended June 30, 2019 were $0.5 million and $0.9 million, respectively, of which $0.3 million and $0.5 million, respectively, were paid to the Company. Total distributions made by the partnership during the three and six months ended June 30, 2018 were $0.0 million and $0.7 million, respectively, of which $0.0 million and $0.3 million, respectively, were paid to the Company.

Final capital distributions were made during the three months ended June 30, 2019, and the affiliated entity has ceased its activity.

The Company holds two of the three board seats and is able to exercise control over the operations of the partnership and therefore has consolidated the entity’s results of operations and financial condition into its financial statements.

Corporate Officers

Trevor Brickman, the son of Green Brick’s Chief Executive Officer, is the President of Centre Living Homes, LLC (“Centre Living”). Green Brick’s ownership interest in Centre Living is 50% and Trevor Brickman’s ownership interest is 50%. Green Brick has 51% voting control over the operations of Centre Living. As such, 100% of Centre Living’s operations are included within our condensed consolidated financial statements.

GRBK GHO

GRBK GHO leases office space from entities affiliated with the president of GRBK GHO. During the six months ended June 30, 2019, GRBK GHO incurred de minimis rent expense under such lease agreements. As of June 30, 2019, there were no amounts due to the affiliated entities related to such lease agreements.

GRBK GHO receives title closing services on the purchase of land and third-party lots from an entity affiliated with the president of GRBK GHO. During the six months ended June 30, 2019, GRBK GHO incurred de minimis fees related to such title closing services. As of June 30, 2019, no amounts were due to the title company affiliate.