Lennar Corp., the largest U.S. homebuilder by market value, said it plans to diversify into apartments with the construction of $1 billion of multifamily properties as rental demand climbs.
The Miami-based company plans to start building 3,000 apartments at a development cost of $560 million this year, Chief Executive Officer Stuart Miller said Tuesday on a conference call.
The first projects are a $36 million, 316-unit community in Jacksonville, Fla., in partnership with Carlyle Group, and a $32 million, 264-unit community northeast of Atlanta.
The plan is the most ambitious foray yet by a U.S. homebuilder into the rental market, said Robert Wetenhall, an analyst with RBC Capital Markets.
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