Lennar Announces $4B Investment in Build-to-Rent

Originally published by: Builder OnlineMarch 22, 2021

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Lennar has announced the formation of the Upward America Venture, a platform that will acquire single-family homes for rent in high-growth markets across the United States.

The business will initially be capitalized with a total equity commitment of $1.25 billion led by Centerbridge Partners alongside Allianz Real Estate and other institutional investors. Including leverage, the venture will be positioned to acquire over $4 billion of new single-family homes and townhomes from Lennar and potentially other builders.

“The Upward America Venture continues Lennar's vision of becoming an ESG-driven home building company by making our high-quality homes not only available for sale but also for rent, with a portion of the homes available with a rent-to-own option,” says Rick Beckwitt, co-CEO and co-president of Lennar. “The vehicle's social focus provides a unique opportunity for families and individuals across the country to live in brand-new homes at an attainable price point, all without putting up a down payment.”

Consistent with Lennar's focus on making the single-family lifestyle available to a broader social and economic array of families, the venture focuses on making new homes affordable to households earning approximately the median income in each market.

“As the housing needs and demographics in the United States continue to evolve, we believe that the single-family rental sector will continue to outperform,” says William Rahm, senior managing director and global head of real estate at Centerbridge. “We are thrilled to partner with Lennar, given their scale and capabilities to aggregate a geographically diverse portfolio of homes concentrated in some of the fastest-growing markets in the country.”