Stuart Miller (Credit: iStock)
Miami-based Lennar Corp. is in advanced talks to sell its real estate lending unit, Rialto Capital.
Private-equity firm Stone Point Capital is considering buying Rialto for an undisclosed price, the Wall Street Journal reported. Lennar indicated in April that it might sell Rialto as part of a larger effort to focus on home building and sell or spin off noncore subsidiaries.
The change comes as Lennar and other home builders face a housing market on the downswing. Home-builder sales in the U.S. slowed 3 percent in September compared to the same time last year, according to a survey of 400 builders. Supply and land costs are on the rise, while builders continue to struggle to find enough skilled labor.
Last week, Lennar reported earnings of $453.2 million in the third quarter or $1.37 per share, beating analysts expectations of $1.19. Still, the company expects fourth quarter home deliveries to fall to 14,500 from its previous forecast of 15,000 due to the impacts of Hurricane Florence.
Earlier this year, the company acquired competitor CalAtlantic Group in a $5.7 billion deal, making Lennar the country’s largest homebuilder by revenue. [WSJ] — Kathryn Brenzel
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