In another major sign of the lackluster multifamily market, one of the largest homebuilders in the U.S. is selling thousands of luxury condos in a move likely to raise billions of dollars.
Miami-based Lennar is marketing more than 11,000 luxury apartments valued at approximately $4.5 billion through its subsidiary Quarterra, the company’s luxury multifamily development arm. according to BisNow. The news was first reported by Bloomberg Law.
Lennar has hired JLL to market the properties while Quarterra explores dividing the portfolio into smaller components, the outlet said.
Sales of multifamily properties across the country have slowed, with a 62 percent decline in sales volume in the first three quarters of 2023 compared to the same period in the previous year, the outlet reported citing Yahoo Finance.
Lennar’s fourth-quarter 2023 multifamily revenues were $141 million, with an operating loss of $12 million, reflecting a decline from $179 million in the same quarter last year.
Lennar’s homebuilding industry, on the other hand, performed well in the fourth quarter, with nearly 24,000 homes built and a profit of $1.4 billion. Company, according to Yahoo Financek expects to deliver 16,500 to 17,000 homes in the first quarter, with an average sales price of about $420,000.
Lennar’s multifamily news comes just over a year after the company announced it offers to sell approximately 5,000 homes to landlords.
Most properties were located in the southwest and southeast, with landlords in some cases having the opportunity to purchase entire subdivisions. That sale was also a response to a sharp market decline.
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