Miami-based Lennar Corp. is in advanced talks to sell its real estate lending unit, Rialto Capital.
Private-equity firm Stone Point Capital is considering buying Rialto for an undisclosed price, the Wall Street Journal reported. Lennar indicated in April that it might sell Rialto as part of a larger effort to focus on home building and sell or spin off noncore subsidiaries.
The change comes as Lennar and other home builders face a housing market on the downswing. Home-builder sales in the U.S. slowed 3 percent in September compared to the same time last year, according to a survey of 400 builders. Supply and land costs are on the rise, while builders continue to struggle to find enough skilled labor.
Last week, Lennar reported earnings of $453.2 million in the third quarter or $1.37 per share, beating analysts expectations of $1.19. Still, the company expects fourth quarter home deliveries to fall to 14,500 from its previous forecast of 15,000 due to the impacts of Hurricane Florence.