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One of the largest homebuilders in the country has put a massive multifamily portfolio up for sale despite lackluster investment volume this year.
Miami-based Lennar is looking to sell more than 11,000 apartments that could earn approximately $4.5B, Bloomberg Law reported. The multifamily giant is working with JLL to market the properties.
The properties operate through Quarterra, a luxury multifamily development subsidiary of the company. It is open to breaking the portfolio into smaller components, according to Bloomberg Law.
The decision to unload the portfolio comes as multifamily sales have remained slow across the country.
Sales volume in the first three quarters of 2023 declined by 61.9% compared to the same period in 2022, according to Avison Young. Pricing per unit has dropped by 7.8% since Q1 of this year.
The high-end multifamily sector in which Quarterra primarily plays has faced concerns of oversupply this year. At the end of Q3, 70% of the nearly 1 million units under construction in the U.S. were considered high-end.
Lennar on Friday reported its Q4 multifamily revenue stood at $141M and recorded an operating loss of $12M, Yahoo! Finance reported. Its revenue was down from $179M in the same quarter last year.
The same cannot be said for its home building sector which performed fairly well in Q4. The company delivered 23,795 homes and drove $1.4B in earnings, according to its Q4 2023 earnings results. Since its founding in 1954, the company has built over 1 million homes across the country, according to its website.
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