Pretium says it will make up to $5 billion available for home builders looking for funding in a difficult market. It says it has already secured $550 million in commitments for its new program.
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“The success of this fund reflects the strength of our brand as a leading investor in residential real estate,” said Jonathan Pruzan, co-president of Pretium. “It underscores the significant opportunity we see to help increase housing supply across the U.S. by filling the void left by regional banks in real estate lending.”
The capital commitments come from a group of existing and new institutional investors. When including leverage and capital recycling throughout the Fund’s life, it expects to originate up to $5 billion in loans to home builders to create new and renovate existing housing stock across the U.S.
A quick glance at the Fund’s investment portfolio offers the following: Vertical construction loans on single-family for-sale and build-to-rent communities, residential transition loans helping to renovate older homes so they can be bought with conventional mortgages, and horizontal infrastructure loans to land developers and lot bankers.
The fund will also use anchor loans and the other operating companies of Pretium to provide private home builders and developers with loans instead of relying on regional banks for funding. Thus far, the Fund has invested $650 million in various projects.
Josh Pristaw, Pretium’s head of real estate, added, “By providing bespoke debt capital solutions, we’re supporting private home builders who are underserved by traditional financial institutions, and we are facilitating new housing supply. This Fund will support the construction of approximately 12,000 new homes in key markets, meaningfully increasing housing availability in regions experiencing the most acute shortages.”
Pretium has invested more than $2.5 billion in the ownership of new build-to-rent construction in the U.S. since 2020, with a portfolio exceeding 8,000 homes across 37 cities in 15 states.
