Lennar raises $2.2 billion for rental investment fund

The Miami-based builder's multifamily venture has capital from six institutional investors

Oct.October 08, 2016 12:00 PM

Miami-based Lennar Corporation completed fund-raising for its Lennar Multifamily Venture with commitments totaling $2.2 billion to develop and own rental housing properties.

The Lennar Multifamily Venture now has 9,100 apartments under development in 31 communities with backing from six institutional investors, including foreign pension funds, sovereign wealth funds and insurance companies. Lennar itself has made a $504 million commitment to the venture.

“As the multifamily development cycle has started to mature, we feel this is the right time to pivot to a strategy that is less reliant on merchant building, or ‘build to sell,’ and focuses on ‘build to own,’ “ Todd Farrell, president of Lennar’s apartment building subsidiary, said in a written statement. “We have assembled a strong partnership with like-minded, patient capital investors.”

Lnnar’s wholly owned Lennar Multifamily Communities (LMC) subsidiary completed the fund-raising after obtaining a $250 million commitment.

LMC, which Lennar formed in 2011, now has about 13,000 apartments in 45 communities under construction or in operation.

Including those properties, the Lennar subsidiary’s total development pipeline is packed with more than 23,000 apartments that will cost more than $7 billion to build.


Related Articles

From left: Stuart Elliott, Jerome Hollo, Michael Shvo, Laurent Morali and Lissette Calderon

South Florida developers riff on the shift from condos to rentals: TRD Miami Showcase & Forum

Arden home community and Stuart Miller

Lennar picks up 50 lots in western Palm Beach County

Lennar's Stuart Miller and a rendering of a Sierra Ranch home

Lennar closes on 89-acre Davie site for single-family home community

The Mile, Robert Given and Troy Ballard

Greystar looks to sell luxury rental building The Mile near Coral Gables

Grant Cardone and 10X Living at Sawgrass

Motivational speaker Grant Cardone raises $50M for multifamily fund via crowdfunding

Daily Digest Miami

Here are the homes of Miami Heat’s elite, developer Steve Witkoff revealed as buyer of Sunset Islands home: Daily digest

Rent reform is propelling a new wave of New York and California investors to Miami (Credit: iStock)

Rent reform in New York, California propels new wave of multifamily investors to Miami

Clockwise from left: 401 Southwest 17th Avenue, Alfonso Jaramillo, and Andros Sarduy 

Beraja family picks up Little Havana apartments