"We pivoted in 2022 to becoming a lender to builders and to land developers, and I think that pivot was very prescient, because there definitely is a need, as the banks are pulling away from lending to the private sellers."
"Large public builders are now investing alongside institutional capital in lending platforms aimed at financing land developers and private builders who produce the lots and homes that ultimately support the industry's supply chain."
Three of America's largest homebuilders—D.R. Horton, Toll Brothers, and Century Communities—have invested in Avila Real Estate Capital's second debt fund, bringing total commitments to approximately $200 million toward a $1 billion target. This investment follows Hillwood Communities' anchor investment last November. The capital deployment represents a significant industry shift where large public builders now invest alongside institutional capital in lending platforms that finance land developers and private builders supplying their lot pipelines. AREC founder Tony Avila credits a 2022 pivot to lending to builders and land developers as prescient, given banks' withdrawal from financing private sellers. The investment occurs amid builder challenges including tight credit, margin pressures, and land pipeline replenishment needs.
#homebuilder-investment #real-estate-capital #land-development-financing #construction-industry-supply-chain #alternative-lending-platforms
Read at www.housingwire.com
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