Miami-based developer Lennar Corp. launched a new $1.1 billion investment fund. Lennar Multifamily Venture will target multifamily properties in the nation’s top 25 markets. The fund is being financed with $504 million from Lennar, with the rest coming from global sovereign and institutional investors.
“To date, we have been building our apartment communities in individual ventures, which were structured to sell the assets once they were leased and stabilized,” said Lennar Chairman and CEO Stuart Miller. “In addition to receiving a consistent fee stream, our new ‘development-to-core’ venture allows us to earn the development, promote [long-term rental income] when the community is stabilized and maintain an ownership interest in the income-producing community going forward. Having the ability to recognize current development earnings and to continue to own a portfolio of income-producing properties is a game-changer for [Lennar’s multifamily division.]”
