Morgan Stanley in real estate venture with major home builder
Lennar, one of the country’s largest home builders, and Morgan Stanley Real Estate, a division of Morgan Stanley & Co., have formed a strategic land investment venture to “acquire, develop, manage and sell residential real estate,” according to a joint news release from the companies.
The new investment venture includes a diversified portfolio of land from Lennar. The properties acquired by the new entity consist of approximately 11,000 home sites in 32 communities in the United States.
The land portfolio includes a mix of raw land as well as partially and fully developed home sites in both active and future communities. The communities are located in California, Colorado, Florida, Illinois, Maryland, Massachusetts, Nevada and New Jersey.
Lennar acquired a 20 percent ownership interest and 50 percent voting rights; according to the companies, as of Sept. 30, the acquired properties had a net book value of approximately $1.3 billion, and the sales price was $525 million.
Lennar will manage the land investment venture’s operations and will receive fees for its services.
“This transaction provides us with increased liquidity and flexibility at an opportune time,” said Stuart Miller, president and CEO of Lennar.
Lennar, based in Miami, builds homes in 18 states and offers financial services to home buyers.
CPG International reports strong third quarter
CPG International, the parent company of AZEK Building Products, reported earnings of $342,000 in the third quarter, swinging from a loss last year of $756,000.
Sales rose 25 percent to $82.55 million compared with $65.75 million in the same period last year.
“Although the residential housing market further weakened in the third quarter, CPG continued to execute on its business plan achieving impressive growth for the quarter,” said Glenn Fischer, CPG’s interim CEO.
Highlights of the third quarter include expansion of the company’s PVC deck manufacturing capabilities, with CPG adding further manufacturing capacity at plants in Alabama and Pennsylvania. Additionally, the company kicked off a 98-store test program of its AZEK Trim product in Home Depot stores.
CPG International, based in Scranton, Pa., markets products under several brands including AZEK Trim and Mouldings, AZEK Deck and Santana Products.
Building Materials Supply expands Simpson Strong-Tie distribution
Galt, Calif.-based Building Materials Distributors announced it will expand its distribution of Simpson Strong-Tie products into Colorado, Wyoming, eastern Washington, northern Idaho and western Montana.
The new markets join BMD’s core markets in California and Nevada.
BMD became the first Simpson Strong-Tie distributor in 1952.
“BMD has been an integral part of Simpson’s success. Due to BMD’s commitment and dedication, we recently expanded our partnership. We look forward to continued success with BMD,” said Dave Simpkins of Simpson Strong-Tie.
BMD is a wholesale distributor of building materials focusing on the western United States.