REAL ESTATE NEWS

Avila Real Estate is providing a boost to its lending capabilities, raising $390 million in fresh capital. The funds come from a major university endowment and a major insurance company.

Now, the move gives Avila more than $750 million from co-investments and commitments, according to a statement posted by the firm.

The closing of capital for the Corte Madera, California-based company, which provides homebuilders and land developers with loans, comes as it targets financing 100,000 lots in the next five years.

Six of the top 10 homebuilders have invested in Avila, according to the firm, including LGI Homes, Century Communities, Toll Brothers, Dream Finders Homes, DRB Group and D.R. Horton. Other institutional investors, endowments, pension plans and insurance companies have also committed capital to Avila.

Since its founding, Avila has financed more than 18,000 lots.

"Institutional investors and the country's leading homebuilders are underwriting the same opportunity from different sides of the table," said Tony Avila, founder and CEO of Avila.

"The builders who have provided capital for our platform understand the need for our credit as their developers consistently need Avila's type of capital to develop finished lots. The knowledge and operational capability they bring to our platform give institutional partners more confidence."

Avila believes that supply constraints will continue to drive credit demand for lots and land development through the current cycle. Citing data from the Census Bureau, the value of annual housing construction in the country exceeds $500 billion, according to the lender.

Source: GlobeSt/ALM