Lennar Corporation has formed a single family rental platform, the Upward America Venture.
The business will initially be capitalized with a total equity commitment of $1.25 billion led by Centerbridge alongside Allianz Real Estate and other high quality institutional investors.
The platform will acquire single family homes for rent in high growth markets across the United States.
”Including leverage, the venture will be positioned to acquire over $4 billion of new single family homes and townhomes from Lennar and potentially other homebuilders,” said Lennar in a statement.
“The Upward America Venture continues Lennar’s vision of becoming an ESG driven homebuilding 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. 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. We have a distinct opportunity to create upward mobility in the housing market through this initiative,” said Rick Beckwitt, Co-Chief Executive Officer and Co-President of Lennar.
“This exciting new venture has an opportunity to scale at a pace we do not believe possible for competitors in the single family rental space, given its direct access to Lennar’s pipeline of over 300,000 owned and controlled homesites,” added Rick Beckwitt.
“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. 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,” said William Rahm, Senior Managing Director and Global Head of Real Estate at Centerbridge.” Ally Heyburn, Principal at Centerbridge, added, “We are excited about this unique partnership in one of our highest conviction themes.”