NEW
YORK, May 2, 2024 /PRNewswire/ -- GTIS Partners
("GTIS"), a global real estate investment firm with a focus on
residential and industrial/logistics investments, and Hovnanian
Enterprises, Inc. (NYSE: HOV), a leading national homebuilder,
today announced that they have expanded their partnership to
develop, construct and sell homes in a new joint venture of eight
additional for-sale homebuilding communities. To date, the partners
have invested in approximately 70 homebuilding communities through
multiple joint ventures.
The eight newly added communities comprise 1,392 homes located
across New Jersey, Florida, Delaware, and South
Carolina. In addition to being geographically diversified,
these communities are diversified by product type, consisting of
townhomes, condominiums and both market-rate and active adult
single-family homes.
Approximately $115 million of
capital will be invested in the joint venture, with Hovnanian
contributing 30% of the capital requirement and GTIS Partners
providing 70%, with total build out costs projected at
approximately $800 million. Hovnanian
will manage the day-to-day operations of the venture.
Tom Shapiro, Founder, President
and Chief Investment Officer of GTIS Partners, said, "We are very
pleased to announce a further expansion of our existing
relationship with Hovnanian. With this transaction we have a
partnership totaling $1 billion in
equity across 15 joint ventures in high-growth markets across
the United States, representing
approximately $6 billion in total
project costs across 12,600 homebuilding units. Hovnanian has
proven to be a tremendous partner and we are thrilled to continue
working with such a highly-experienced homebuilder."
Ara Hovnanian, Chairman of the
Board of Directors, President and Chief Executive Officer of
Hovnanian Enterprises, Inc. also commented, "This addition marks
the expansion to over a decade's worth of successful joint venture
partnerships and a strong working relationship between our two
firms across multiple business cycles. GTIS' deep industry
expertise and homebuilding investment experience has made them
ideal institutional partners to collaborate with to grow our
homebuilding portfolio."
Ed McDowell, Partner and Head of
US Acquisitions for GTIS Partners, added, "The addition to the
portfolio represents a mix of product types, price points, and a
unique geographic diversity across eight communities in four
states, many of which are follow-on investments to communities we
are already invested in with Hovnanian. This dynamic, combined with
the advanced development stage of several of the communities within
the portfolio – many of which are already selling and delivering
homes – provides excellent visibility into current home prices,
absorption, buyer demand, and construction and development costs,
and reduces the risks typically associated with development to
generate strong risk-adjusted return for both parties."
About GTIS Partners
GTIS Partners is a global real estate investment firm in the
Americas, headquartered in New
York with offices in São Paulo, San Francisco, Los
Angeles, Atlanta,
Charlotte, Phoenix, Dallas, Houston and Munich. The firm was founded in 2005 and is
managed by President and Founder Tom
Shapiro and seven other partners. The firm manages
$4.5 billion in gross assets and is
active across a wide range of real estate sectors including single
family and multifamily housing, office, industrial/logistics and
hospitality as well as opportunity zone investments. The firm
invests at various points in the capital structure including
credit, common equity and structured equity. In the US, GTIS has
invested in over 215 assets across 45 unique markets including
growth areas such as Miami,
Phoenix, Dallas, Houston, Denver, Atlanta, Tampa and Charlotte. In Brazil, GTIS is among the largest real estate
private equity firms with holdings including office, residential,
logistics, and hospitality investments. Marquee assets developed by
GTIS Partners in São Paulo include the Infinity office building and
Palácio Tangará, a five-star resort style hotel. For more
information, please visit www.gtispartners.com.
About Hovnanian Enterprises
Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, is headquartered in
Matawan, New Jersey and, through
its subsidiaries, is one of the nation's largest homebuilders with
operations in Arizona,
California, Delaware, Florida, Georgia, Maryland, New
Jersey, Ohio, Pennsylvania, South
Carolina, Texas,
Virginia and West Virginia. The Company's homes are
marketed and sold under the trade name K. Hovnanian®
Homes. Additionally, the Company's subsidiaries, as developers of
K. Hovnanian's® Four Seasons communities, make the
Company one of the nation's largest builders of active lifestyle
communities.
Additional information on Hovnanian Enterprises, Inc. can be
accessed through the "Investor Relations" section of the Hovnanian
Enterprises' website at http://www.khov.com. To be added to
Hovnanian's investor e-mail list, please send an e-mail to
IR@khov.com or sign up at http://www.khov.com.
Media Contacts
Mary Beth Grover / Keely
Gispan
ASC Advisors
(203) 992-1230
mbgrover@ascadvisors.com / kgispan@ascadvisors.com
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SOURCE GTIS Partners