Värde Partners, a global alternative investment firm, has invested $250 million in the development of single-family residential projects with three transactions in the U.S.
“The U.S. housing market represents a significant investment opportunity for Värde, with compelling supply demand dynamics driven by low interest rates, demographic trends and secular shifts accelerated by Covid-19,” said Brian Schmidt, Partner at Värde.
“These deals demonstrate the speed, scale and flexibility with which our platform can invest across the capital structure to provide appropriate financing solutions while traditional lenders continue to retrench,” he added.
The single-family residential projects transactions announced include:
- A $100 million land bank facility with Dream Finders Homes (DFH), a leading homebuilder based in Jacksonville, Florida. The capital will be used to acquire land in Florida and Colorado, with a focus on Jacksonville, Orlando and Denver, to be developed into residential lots by DFH.
- The acquisition of Verde River, an ‘active adult’ resort lifestyle master-planned community (MPC) in Scottsdale, Arizona, including 55+ housing and an agreement with Shea Homes, one of the country’s leading private homebuilders, to continue developing and building out the project. The community will include 1,210 homes and is already well established with over 600 homes sold.
- The acquisition of Sunfield, a late-stage MPC based in Austin, Texas, and formation of a joint venture with IHP Capital Partners to manage the project. Located in one of Austin’s fastest growing suburbs, the community is nearly half complete with 2,770 lots remaining out of 6,550 in a market with high demand for more affordable homes.
“We have deep experience in housing-related investments and we welcome the opportunity to deepen existing relationships and establish new ventures, as we continue to grow our footprint across the U.S. residential real estate market. MPCs in particular have maintained strong levels of demand with buyers seeking attractive lifestyle communities that offer substantial open space,” added Brendan Bosman, Managing Director at Värde.