TPG Real Estate, a global alternative asset management firm, has acquired a majority interest in Quarterra, the multifamily arm of leading home builder Lennar.
As part of the acquisition, TPG has made an additional $1 billion strategic commitment and expects to raise further capital to grow Quarterra’s development pipeline, with a focus on its Emblem attainable housing brand.
Lennar has retained a minority stake in the platform, continuing to provide differentiated insights and synergies to Quarterra. In addition, TPG and Lennar will work alongside Quarterra management to take the established platform to its next stage of growth while addressing the nation’s need for attainable housing.
According to Lennar executive chairman and CEO Stuart Miller, this transaction combines TPG’s institutional capital and real estate expertise with the home builder’s community development focus to tackle the nation’s affordability crisis. It also will help accelerate the creation of more attainable rental options, which will help more Americans move up the ladder to future homeownership.
“For nearly 15 years, we have prided ourselves on building homes and communities where people love to live,” said Quarterra CEO Brad Greiwe, who will continue to lead the company. “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.”
Quarterra’s portfolio spans the rental spectrum—from amenity-rich multifamily buildings to single-family build-to-rent communities. Since launching in 2011, it has delivered over 43,000 rental residences across the nation with approximately 13,000 additional units in the pipeline. Its legacy joint ventures were not included in the transaction.
“Quarterra’s proven multifamily platform combines quality, consistency, and scale to deliver communities built to meet the full spectrum of needs of today’s renters,” said Dan Frydman, business unit partner with TPG. “As demand for modern, attainable rental housing continues to grow, we are excited to partner with the Lennar and Quarterra teams to position the platform for success as an independent company with expanded resources to deliver housing supply to families and communities across the country.”
Jones Lang LaSalle Securities served as the exclusive financial adviser to Quarterra and Lennar in the transaction.