Hovnanian Enterprises—No. 16 on the 2024 Builder 100—announced it has expanded its partnership with real estate investment firm GTIS Partners to develop, construct, and sell homes in eight new for-sale communities.
To date, the partners have invested in approximately 70 home building communities through multiple joint ventures.
"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,” says Ara Hovnanian, chairman of the board of directors, president, and CEO of Hovnanian Enterprises. “GTIS' deep industry expertise and home building investment experience has made them ideal institutional partners to collaborate with to grow our home building portfolio."
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%. Total build-out costs are projected at approximately $800 million. Hovnanian will manage the day-to-day operations of the venture.
"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 home building units,” says Tom Shapiro, founder, president, and chief investment officer of GTIS Partners. “Hovnanian has proven to be a tremendous partner, and we are thrilled to continue working with such a highly experienced home builder.”
