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Bailey McCann, Opalesque New York: Private equity real estate firm GTIS Partners has entered into a $160 million joint venture with Hovnanian Enterprises, a national home builder. The deal marks the fifth off-market transaction GTIS has done with Hovnanian. In total the two companies have done approximately $300 million in business together.
In total, GTIS and Hovnanian have worked together on 5,000 lots spread across the five transactions.
The current venture intends to design, construct and sell homes on the properties, which are located on approximately 2,340 lots across thirteen communities in Arizona, California, Florida, Illinois, Maryland, New Jersey, South Carolina and Virginia, and expects the proceeds from home sales to exceed $1.0 billion in revenues. The first tranche of the joint venture, consisting of eight communities, has closed.
"We think the demographics of this project are really strong, it's a mix of active adult communities that are in desirable areas. The deal is reflective of the continued strong recovery across the US housing market," Rob Vahradian, Senior Managing Director, Head of U.S. Investments GTIS tells Opalesque.
Approximately $160 million of capital will be invested in the joint venture, with Hovnanian contributing 25% and GTIS Partners providing 75%. Hovnanian will manage the day-to-day operations of the venture.
GTIS is on the hunt for similar transactions over the near term. "We think the health of...................... To view our full article Click here
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