MIAMI – Lennar Corp., one of the nation’s largest homebuilders, has created a $1.1 billion fund for a major multifamily development program focused on the 25 largest metropolitan markets in the United States.
“In 2011, we drafted a blueprint to become one of the leading developers of class-A multifamily communities in the United States. We identified a multiyear shortfall in apartment development and targeted this housing category to complement Lennar’s focus on the entry-level buyer. Over the past four years, fueled by the strength of our senior management team, we quietly built this business into the nation’s fifth largest apartment developer,” said Stuart Miller, CEO of Lennar. “Today’s announcement marks a significant milestone in the evolution of our multifamily business.”
Lennar announced the formation of Lennar Multifamily Venture an equity fund between Lennar Multifamily Communities and global sovereign and institutional investors targeting investments in class-A multifamily development assets in 25 top metropolitan markets in the United States.
The new venture will aim to provide returns through a “develop-to-core” strategy – developing multifamily communities and then holding those apartment communities in a portfolio long term for cash flow.