Lennar in talks to sell real estate lending unit to Stone Point Capital

Company indicated possible sale of Rialto Capital earlier this year

Oct.October 09, 2018 11:01 AM

Stuart Miller (Credit: iStock)

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.

Earlier this year, the company acquired competitor CalAtlantic Group in a $5.7 billion deal, making Lennar the country’s largest homebuilder by revenue. [WSJ] — Kathryn Brenzel

Related Articles

A rendering of Via Ventura and Stuart Miller (Credit: Lennar)

Lennar sells off part of its Via Ventura community

From left: Andrea and Renzo Rosso

Diesel family dishes on Wynwood condo project

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

Daily Digest Miami

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

Lennar at Sorrento at Venetian Parc clubhouse, Lennar Vice Chairman Stuart Miller

HOA buys clubhouse in southwest Miami-Dade from Lennar

From left: Alejandro Arias, Keren Marti, Avra Jain, Carolina Herrera, Luis Gonzalez, and Melissa Rose (Credit: Brett Hufziger Photography, Google Maps)

New frontier? Developers look to Hialeah

Construction of downtown Hollywood high-rise may start soon

Construction of downtown Hollywood high-rise may start soon