MIAMI—Lennar Corporation just inked a $1.1 billion venture with a slew of investors. Lennar Multifamily Venture (LMV) is an equity fund between Lennar Multifamily Communities and global sovereign and institutional investors targeting investments in class A multifamily development assets in 25 top metropolitan markets in the United States.

The business plan: to provide better risk-adjusted returns through a "develop-to-core" strategy—developing multifamily communities and then holding those communities in a portfolio long term for cash flow. LMV will focus on the top growth and gateway multifamily markets in the United States, which it identifies through strong long-term demand fundamentals and constrained supply.

"This venture fund reinforces Lennar's strategy and commitment to diversify beyond homebuilding and become a major player in the multifamily market,” Steven Lear, Bilzin Sumberg Corporate Practice Group Leader and attorney for Lennar, tells GlobeSt.com. “Whereas in the past, the company would work on stand-alone multifamily deals, this platform allows Lennar to continue its growth in multifamily by capitalizing on multiple opportunities throughout the country through a single investment and financing vehicle."