MIAMI, FL – Lennar Corporation, one of the largest home builders in the country, announced the creation of the Upward America Venture. The company will initially be capitalized with an equity commitment of $ 1.25 billion led by Centerbridge along with Allianz Real Estate and other high quality institutional investors. The platform will acquire single-family homes for rent in high-growth markets in the United States. Including leverage, the company will be able to acquire over $ 4 billion in new single family homes and townhouses from Lennar and potentially other builders.
In line with Lennar's focus on bringing the single-family home lifestyle to a wider social and economic spectrum of families, the company is focused on making brand new homes affordable for households earning roughly the median income in each market.
Rick Beckwitt, Co-Chief Executive Officer and Co-President of Lennar, said, "The Upward America Venture continues Lennar's vision of becoming an ESG-powered housing company by offering our quality homes for sale as well as rent A portion of the homes are available with a rental option. The social focus of the vehicle offers families and individuals across the country a unique opportunity to live in brand new homes at an affordable price without paying a down payment. A special opportunity through this upward mobility initiative to create the housing market. "
Mr. Beckwitt concluded, "This exciting new company has the ability to scale at a pace we believe competitive single-family home rentals cannot, as it has direct access to Lennar's pipeline of over 300,000 owned and controlled residential lots. "
"As housing needs and demographics continue to evolve in the US, we anticipate the single family rental sector will continue to perform better. We are excited to partner with Lennar as this scope and capabilities encompass a geographically diverse portfolio of residential properties Some of the fastest growing markets in the country, "said William Rahm, Senior Managing Director and Global Head of Real Estate at Centerbridge." Ally Heyburn, Principal at Centerbridge added, "We are delighted to have this unique partnership on one of our greatest concerns . "
Kirkland & Ellis LLP served as legal advisor to Lennar, Simpson Thacher & Bartlett LLP served as legal advisor to Centerbridge, and Ropes & Gray LLP served as legal advisor to Allianz Real Estate.
Source: Lennar Corporation