Lennar Corp. is reducing its exposure to the rental housing market, selling a majority interest in its Quarterra business to TPG Real Estate.
Quarterra is a developer of multifamily communities that combines institutional scale with local market expertise to deliver rentals in high-growth markets. Lennar has retained a minority stake in the platform.
“For nearly 15 years, we have prided ourselves on building homes and communities where people love to live,” says Quarterra CEO Brad Greiwe, who will stay on in the role. “With the continued support of Lennar and the business-building experience and investment expertise of our new partners at TPG, we are confident that the Quarterra platform is positioned to deliver on this mission at scale, expanding access to quality housing nationwide.”
TPG has made an additional $1 billion commitment in connection with the acquisition and expects to raise additional capital to fund future growth and the development of Quarterra’s multifamily pipeline, with a focus on Emblem communities.
TPG and Lennar will work alongside Quarterra management to take the established platform to its next stage of growth while addressing the urgent need for accessible, attainable housing across the U.S.
“This partnership reflects our shared commitment to tackling one of America’s most pressing challenges: housing affordability,” says Stuart Miller, executive chairman and CEO of Lennar. “By combining TPG’s institutional capital and real estate expertise with Lennar’s deep building and community-development expertise, Quarterra will be able to accelerate its mission of creating attainable rental options that help more Americans step onto the path toward future homeownership.”
Quarterra’s portfolio spans the full residential rental spectrum—from amenity-rich multifamily buildings to full-scale single-family communities. Since its launch in 2011, the platform has delivered more than 43,000 rental residences across the U.S., with approximately 13,000 additional units in the development pipeline.
Quarterra is committed to addressing nationwide housing supply and affordability challenges through its Emblem communities, which leverage an innovative, streamlined design process and Lennar’s scaled construction capabilities to deliver attainable Class A strategically located housing that is purpose-built for modern workforces and families.
This transaction makes sense for both parties,” said Timothy Sullivan, Zonda’s chief advisory officer. “Lennar monetizes a majority of its interest in Quarterra while TPG diversifies its holdings in housing. Further, Lennar can provide a steady flow of homes going forward and the rental approach allows more consumers to access quality housing without having to come up with a down payment, qualify for a mortgage, or deal with maintainence.”
Quarterra’s legacy joint ventures are not included in the transaction. Jones Lang LaSalle Securities, LLC, acted as exclusive financial advisor to Quarterra and Lennar in the transaction.
