Lennar closes $1.3B fund to invest in multifamily projects across US

Capital will be used to develop and acquire $2.6B in assets

Jun.June 12, 2019 01:46 PM
Stuart Miller and a rendering of a Lenner development

Stuart Miller and a rendering of a Lenner development

Lennar Corp.’s multifamily arm closed a $1.3 billion fund that will invest in apartment projects in large U.S. cities.

LMC, a subsidiary of Miami-based Lennar Corp. announced the closing of the equity fund on Tuesday. It said eight institutional investors, including foreign pensions, sovereign wealth funds, banks and insurance companies invested in the fund. Lennar also contributed $381 million to the fund.

The company said the fund, known as LMV II, will develop and acquire apartment communities for the fund’s duration of eight years. LMV II will provide LMC with capital to develop and acquire $2.6 billion in multifamily assets across the United States, according to a release.

Lennar’s multifamily division makes up a small portion of the company’s business. In the first quarter of 2019, it made up just 2.5 percent of its total revenue.

After acquiring CalAtlantic in a deal worth $9.3 billion last year, Lennar became the largest homebuilder in the U.S. The company’s executive chairman Stuart Miller has previously suggested that he wanted to make Lennar a “pure-play” homebuilder to concentrate the company’s focus on building single-family homes.

The company likely still wants to take advantage of the growing number of renters in large U.S. cities, as homeownership in these cities becomes more unaffordable and out of reach for many young people.

Related Articles

Home foreclosures are dropping (Credit: iStock)

Home foreclosures dropped nearly 20% in Q3, report shows

Lennar’s Stuart Miller

Lennar reports 13% uptick in Q3 profit amid sluggish housing market

Miami will see a big dip in home prices during the next recession, according to reports (Credit: iStock)

Miami among most at-risk cities for falling home prices during next recession: report

Homebuilding shares are close to their highest levels of the year thanks to low mortgage rates (Credit: iStock)

Low mortgage rates boost homebuilding stocks despite recession anxiety

(Credit: iStock)

Hispanic buyers prop up U.S. housing market

Stuart Miller

Lennar Q2 earnings beat estimates, but stock falls due to effect of tariffs

(Credit: Pixabay)

Home prices rise at slower pace despite falling mortgage rates: report

Food Halls Are Taking the Bite Out of the Retail Apocalypse

Food Halls Are Taking the Bite Out of the Retail Apocalypse