Lennar plans second fund to invest in distressed real estate

Homebuilder Lennar expects to close a $650 million private equity fund for its distressed real estate unit this year and open a second fund in 2012, Bloomberg reported.

Lennar’s Rialto Investments division purchases commercial real estate loans from banks and regulators; Lennar has invested about $500 million in Rialto, according to CEO Stuart Miller.

Lennar is the nation’s third largest homebuilder by revenue, and Rialto has accounted for about half of the builder’s profits as of late, said Miller.

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