Avila raises $390M to fund land and lot deals for US homebuilders
What's the deal? Avila Real Estate CapitalDealroom has a profile for this one. Try Dealroom → has closed $390 million in new institutional commitments and co-investments, the Corte Madera, California-based lender announced on September 15. The raise brings its total capital base above $750 million to finance land, lot, and construction loans for homebuilders and residential developers across the US.
Who's backing it? The fresh capital comes from two unnamed institutions: a large insurance company and a major university endowment. They join existing international investors and six of the top 20 US homebuilders — D.R. HortonDealroom has a profile for this one. Try Dealroom →, LGI HomesDealroom has a profile for this one. Try Dealroom →, Century CommunitiesDealroom has a profile for this one. Try Dealroom →, Toll BrothersDealroom has a profile for this one. Try Dealroom →, Dream Finders HomesDealroom has a profile for this one. Try Dealroom →, and DRB GroupDealroom has a profile for this one. Try Dealroom →, a subsidiary of Sumitomo ForestryDealroom has a profile for this one. Try Dealroom →. Developers including HillwoodDealroom has a profile for this one. Try Dealroom →, led by Ross Perot Jr., are also investors.
What's the endgame? Founded and led by Tony Avila, the firm finances land acquisition, horizontal development, construction, and finished-lot delivery in major US growth markets. It has financed more than 18,000 lots so far and is targeting 100,000 over the next five years.
Why now? The annual value of new US housing construction tops $500 billion, according to the US Census Bureau, yet builders face tight land and finished-lot supplies. With regional banks under regulatory pressure and construction lending selective, non-bank capital that can move quickly on deals outside traditional bank structures has grown more valuable.
In their words: "Institutional investors and the country's leading homebuilders are underwriting the same opportunity from different sides of the table," said Avila, the firm's founder and chief executive officer. Its affiliate, Builder Advisor GroupDealroom has a profile for this one. Try Dealroom →, has sold more than 20 homebuilders that are now investors in the platform, tightening ties between the lender and its operators.
The signal: By aligning institutional investors, large builders, and developers on a single platform, Avila is trying to institutionalise what has long been a fragmented capital stack for land and lot development. If it hits its 100,000-lot target, it could shape where and how new communities get financed and built.
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