Neil DeVroy of Dallas-based Centex says there also are buyouts being discussed with other urban townhome builders in Centex's prime single-family markets. "We will use the CityHomes model to grow elsewhere," he told GlobeSt.com. "They have a very high level of expertise that was attractive to us."

DeVroy says there are no plans to change CityHomes structuring with the takeover. It will operate as an extension of Centex, which also will handle construction for the acquired division. CityHomes founder Alan McDonald will become president of CityHomes by Centex when the transaction is completed.

The nationally recognized, three-year-old CityHomes has concentrated its inner-city development efforts in the McKinney Avenue corridor and Dallas' tony Highland Park. Centex will be getting all CityHomes' structures that are under construction and all raw land, including the property under its wing that can accommodate 300 townhomes in Oak Lawn. CityHomes has been building about 120 townhomes per year in some of Dallas' trendiest sections, including Knox Street. It counts among its projects the Italian-style dwellings of The Terraces, Parkwood Townhomes, Cambrick Square and The Morrison.