News & Opinions
The latest news and insights from Hanley Wood’s outspoken experts and key thought-leaders throughout the residential and commercial design and construction industry.
Journal of Light Construction / May 15, 2013
They started building their property portfolios by paying low-ball prices in cash for foreclosed bank-owned properties. But now, big investment companies have started to purchase new houses too, according to a report in Bloomberg BusinessWeek (“Private Equity Taps Builders as Foreclosures Vanish,” by John Gittelsohn).
“Landsmith LP paid $32.5 million this month for 250 Houston-area houses that were built last year,” the report says. “The firm, which began buying properties to rent in 2009, has 2,000 lots for new homes under contract and expects to purchaseRead More
Teresa Burney / BUILDER / May 13, 2013
Private equity funding plus public stock sales create a hybrid breed of builder with capital to buy land and grow.
Out of the furnace of the six-year housing meltdown has emerged a new breed of home builder—a hybrid infused with private equity funding, private builder agility, and access to low-cost capital thanks to the power of Wall Street ticker symbols.
These newly minted hybrid builders have advantages that many builders with older business models don’t have. First and foremost, they have money. Many were rescued by private equity funds that imparted them with capital to survive andRead More