Walton Expands BOLD Funds as Residential Housing Market Ramps Up

Walton expanded its Builder Option Land Development Funds to raise capital to acquire land determined for residential development by US homebuilders.

The BOLD Funds collectively total $500 million, with $250 million allocated for US investors and another 250 million in an offshore fund for non-US resident investors. The funds are intended to acquire properties that US homebuilders mark to be used for near-term residential development. The land will be sold to those builders in phases with a schedule and flexible payment terms. Distributions are made to investors as the homebuilders develop and sell the homes.

“Homebuilders are able to improve their ROI by better aligning land inventory costs with cash flow from home sales and investors benefit from a diversified source of cash flow,” said Bill Doherty, CEO of Walton Group of Companies. Walton, a real estate investment and land asset management company, manages and administers $3.39 billion of real estate assets in North America.

The expanded BOLD Funds give domestic and international investors the chance to participate in the growth of the US development market. New home demand is expected to continue rising with a 55 percent year-over-year increase in new home sales since last June, according to a John Burns Housing survey. Homebuilder confidence in the single-family new home market increased to 58 in June, an crease of 21 points, indicating a positive market, according to the National Association of Home Builders Housing Market Index.

The NAHB is confident that economic recovery from the pandemic will be led by the housing market.

“Inventory is tight, mortgage applications are increasing, interest rates are low, and confidence is rising,” said Dean Mon, chairman of NAHB. “And buyer traffic more than doubled in one month even as builders report growing online and phone inquiries stemming from the outbreak.”