Walton Global Seeks up to $500M in Housing Fund
Walton Global has launched a housing fund called American Builder Growth and Income Fund, seeking to raise up to $500 million.
The fund is investing in secured income-oriented financing assets and provides loans to homebuilders that are looking to acquire land.
The fund builds on Walton's nearly five decades of experience in acting as a land banking firm and partnering with major homebuilders. Doing this allows developers to cut balance sheet risk and prioritize capital efficiency, according to the company.
"For land bankers, strategic partnerships with builders translate into steady demand for land options and predictable exit pathways, Walton said.
"The point of maximum opportunity occurs at the entitled, infrastructure-ready land stage, where uncertainty has been removed, capital risk is limited, and builders pay a premium just before vertical construction begins. Public homebuilders increasingly prioritize capital efficiency and balance-sheet discipline rather than tying up capital in land holdings," Bill Doherty, CEO of Walton Global, added in comments.
It comes as the United States deals with a major undersupplied housing sector, with Walton estimating the national shortfall to be a million units. The biggest issues are happening in metro areas where population and labor growth exceed new housing completions.
"U.S. housing is fundamentally undersupplied, land is increasingly scarce, and affordability continues to be a concern, Doherty said.
In total, Walton has 170 master plans and over 88,000 acres under management and administration.
In efforts to deal with the national housing crisis, the House recently unanimously passed the Housing for the 21st Century Act, which aims to deliver more supply while lowering regulatory barriers to streamline building. That comes after the Senate passed the ROAD to Housing Act, which includes 40 provisions spanning nearly every sector of the housing market—from opportunity zones and innovation funds to small-dollar loan incentives, home repair assistance and anti-homelessness initiatives. Still, hurdles remain, with both bills needing to clear opposite chambers before heading to President Donald Trump's desk.
Source: GlobeSt/ALM