GTIS Partners LP and Hovnanian Enterprises, Inc. have closed a $200 million joint venture to develop and sell homes across a diversified portfolio of U.S. residential communities. 

Under the agreement, GTIS will contribute $150 million in equity alongside $50 million from Hovnanian, supporting total projected buildout costs of approximately $545 million. The portfolio represents an estimated $617 million in home value and increases the cumulative value of the firms’ joint homebuilding platform to roughly $8 billion. 

The portfolio includes seven communities across five states, with approximately 907 homes remaining at closing. The assets are diversified by geography and product type, spanning active adult single-family homes, market-rate housing, townhomes—including affordable units—and low-rise condominiums. 

“Because most of the communities are already well into development, we have a clear understanding of current home prices, how quickly homes are selling, and the costs to build them,” said Ed McDowell. 

At closing, the communities were largely through land development and under active construction, with all but one already selling homes. The portfolio also included 125 homes sold but not yet closed, representing approximately $82 million in backlog. 

“GTIS brings valuable industry experience and a steady, long-term perspective, making them the perfect partner as we continue to expand and diversify our homebuilding portfolio,” said Ara Hovnanian.