Avila Pulls in $390M to Expand Homebuilder Financing

Avila Real Estate Capital has secured $390 million in new capital and co-investments, expanding its capacity to finance residential land and lot development.

The commitments came from two unidentified institutions—a large insurance company and a major university endowment—and raised Avila’s total commitments and co-investments above $750 million. The private real estate credit platform has financed more than 18,000 lots and aims to finance 100,000 over the next five years.

Avila provides financing for land acquisitions, horizontal development, construction and finished-lot delivery in major U.S. growth markets.

The new investors join international institutions and six top-20 U.S. homebuilders: D.R. Horton, LGI Homes, Century Communities, Toll Brothers, Dream Finders Homes and DRB Group, a Sumitomo Forestry subsidiary. Hillwood, led by Ross Perot Jr., is also an investor.

“Institutional investors and the country’s leading homebuilders are underwriting the same opportunity from different sides of the table,” founder and CEO Tony Avila said. He added that builder participation provides industry knowledge and operational capacity that can give institutional investors greater confidence.

The raise follows Avila’s recent closing of a $305 million credit facility supporting the development and construction of more than 3,000 lots in California.