AREC raises $390 million to finance lot and land deals for builders

Avila Real Estate Capital closed $390 million in new institutional commitments and co-investments, bringing its total capital base to more than $750 million to finance land, lot and construction loans for homebuilders and residential developers across the U.S., the firm announced Sept. 15. The Corte Madera, California-based lender, founded and led by Tony Avila, focuses exclusively on financing land acquisition, horizontal development, construction and finished-lot delivery in major U.S. growth markets. The fresh capital comes from two unnamed institutions: a large insurance company and a major university endowment, according to the announcement. These new investors join existing international institutional investors and six of the top 20 U.S. homebuilders – D.R. Horton, LGI Homes, Century Communities, Toll Brothers, Dream Finders Homes and DRB Group, a subsidiary of Sumitomo Forestry – which have invested in Avila’s platform. Developers including Hillwood, led by Ross Perot Jr., are also investors. “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 Real ...