Avila Real Estate Capital (AREC), a private real estate credit platform focused on residential development and home building, announced the second close of its latest debt fund, bringing total capital closed to approximately $200 million.
D.R. Horton, Toll Brothers, and Century Communities, three builders ranked inside the top 10 of the Builder 100 list, have invested in the fund. The builders will participate alongside a diversified group of institutional investors, insurance funds, public and corporate pensions, and family office investors.
The first close of the debt fund, announced in November 2025, generated approximately $100 million in investor commitments, including a lead partner investment from Hillwood.
The fund is targeting $1 billion in total capital and expects to hold its final close on June 30, according to AREC.
“We are seeing strong momentum in this second fund as investors recognize the durable opportunity in residential development credit,” said Tony Avila, CEO of AREC. “We are proud to welcome D.R. Horton, Toll Brothers, and Century Communities as partners in our second fund.”
“In addition to our institutional investor, pension fund, and endowment partners, their participation underscores the growing institutional recognition that reliable structured capital is essential to solving the housing supply crisis,” Avila continued. “Combined with Hillwood as our anchor [lead partner], we have some of the largest builders and developers in the country supporting our strategy.”
The second fund builds on AREC’s strategy of providing structured senior credit solutions to land developers and builders, including project-level, first mortgage loans for land development and first lien revolve facilities to support vertical construction. The strategy is designed to address the structural undersupply of housing in the U.S. by providing flexible capital to experienced operators.
AREC’s first debt fund closed in July 2025 with more than $700 million in total commitments and co-investments from a base of institutional investors, family offices, and high-net-worth individuals. The fund has capitalized dozens of communities across the country, helping finance the construction of over 10,000 new homes. Strategic builder investors in that fund include Sumitomo Forestry/DRB Group, LGI Homes, Century Communities, Hayden Homes, and Dream Finders Homes.
In August 2025, chief operating officer Oscar Vasquez told Builder the $700 million debt fund was a validation of AREC’s strategy and the need for flexible private capital to serve the home building sector.
Through its affiliate Builder Advisor Group, AREC maintains deep relationships across the home building ecosystem, enabling it to evaluate projects through both financial and operational lenses.
“Access to well-structured capital for land developers is critical to maintaining a healthy pipeline of finished lots for the industry,” said Derrick Hoffman, vice president of land strategies for D.R. Horton. “AREC’s platform is aligned with that objective, providing disciplined credit solutions that help experienced developers bring land to market efficiently. We view this relationship as strategically important to supporting long-term housing supply.”
