"Lennar announced on Tuesday that TPG Real Estate has acquired a majority stake in Quarterra, Lennar's multifamily vertical. Lennar will maintain a minority interest, but the deal signals a strategic recalibration as the builder's multifamily business struggled with a sizeable net loss last year. In fiscal 2025, Lennar's multifamily business experienced an operating loss of roughly $75 million, according to earnings reports released by the company."
"After breaking even in Q1, the builder's multifamily vertical posted losses in three consecutive quarters, including a $44 million operating loss in Q4. Lennar isn't completely abandoning multifamily, unlike Toll Brothers, which sold Toll Brothers Apartment Living last year to Kennedy Wilson Holdings in a deal now valued at $380 million. However, Lennar's move to reduce investment exposure to the multifamily segment will allow it to reallocate capital to its more profitable core homebuilding business."
TPG Real Estate acquired a majority stake in Quarterra while Lennar retains a minority interest. Lennar's multifamily vertical posted an operating loss of roughly $75 million in fiscal 2025, breaking even in Q1 but recording losses in three consecutive quarters including a $44 million Q4 loss. The transaction reduces Lennar's investment exposure to multifamily and enables capital reallocation toward its more profitable core homebuilding business. TPG committed an additional $1 billion to Quarterra plus capital for future development projects. Prior spin-off plans stalled due to unfavorable market conditions and weakening rent growth.
Read at www.housingwire.com
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