Taylor Morrison and Värde Partners Scale $850 Million Build-to-Rent Joint Venture with Nine Asset Closings Since Inception

SCOTTSDALE and MINNEAPOLIS —Taylor Morrison Home Corporation (NYSE: TMHC), a leading national land developer and homebuilder, and Värde Partners, a leading global alternative investment firm, are pleased to share that they have quickly scaled their Build-to-Rent joint venture. In the first several weeks since the venture’s inception, it has closed on nine assets across Texas, Florida, North Carolina and Arizona.

As previously announced in April, the joint venture was established to develop rental properties as a part of Taylor Morrison’s Build-to-Rent program. The venture includes $850 million in equity commitments, funded 60 percent by Värde Partners and 40 percent by Taylor Morrison. The agreement provides Värde with the exclusive opportunity to invest in the acquisition and development of Build-to-Rent projects identified by Taylor Morrison that meet the venture’s investment guidelines.

The capital will help finance the ongoing expansion of Taylor Morrison’s Build-to-Rent program, which began in 2019 through a branding and servicing relationship with Christopher Todd Communities, a successful early adopter of innovative, luxury rental communities.

“The growth in demand for rental housing in high quality suburban areas continues to outpace supply, creating substantial opportunities for institutional capital,” said Brendan Bosman, Senior Managing Director at Värde Partners.

“This vehicle offers the ability to efficiently scale our Build-to-Rent platform to capitalize on the attractive market dynamics in the horizontal rental arena with a known and respected capital partner. We believe we are in early innings of the evolution of this attractive space and remain very excited about its growth prospects,” said Erik Heuser, Taylor Morrison EVP and Chief Corporate Operations Officer.

In July 2021, the firms also entered into a land banking facility agreement to acquire and develop residential lots across the homebuilder’s markets of operation. Värde and Taylor Morrison have closed on 6,800 lots under the arrangement in 11 markets.

Värde Partners has 28 years of experience investing in real estate with substantial equity and credit investments in residential land development and homebuilding transactions. The Build-to-Rent joint venture and land banking facility will further increase Värde’s U.S. housing footprint in its target markets.

About Taylor Morrison

Headquartered in Scottsdale, Arizona, Taylor Morrison is one of the nation’s leading homebuilders and developers. We serve a wide array of consumers from coast to coast, including first-time, move-up, luxury, and 55-plus active lifestyle homebuyers under our family of brands—including Taylor Morrison, Esplanade, Darling Homes Collection by Taylor Morrison, and Christopher Todd Communities built by Taylor Morrison. From 2016-2022, Taylor Morrison has been recognized as America’s Most Trusted® Builder by Lifestory Research. Our strong commitment to sustainability, our communities, and our team is highlighted in our latest Environmental, Social and Governance (ESG) Report on our website. For more information about Taylor Morrison, please visit www.taylormorrison.com.

About Värde Partners

Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $90 billion since inception and manages over $13 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde has offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit www.varde.com.

Värde Partners Finances $2.7 Billion of Commercial Real Estate Loans in 2021

MINNEAPOLIS and NEW YORK – Värde Partners, a leading global alternative investment firm, today announced it closed $946 million in U.S. commercial real estate (CRE) loans across 14 transactions in the fourth quarter of 2021. In total, Värde’s CRE lending platform originated over $2.7 billion in 2021, spanning hospitality, office, multifamily, industrial and mixed-use assets.

Värde expects the elevated demand for U.S. CRE loans to continue into 2022 with favorable supply/demand dynamics against the backdrop of a CRE CapEx cycle. From population growth and a migration to the Sunbelt states, to continued changes in travel and questions around office space requirements, most properties are faced with addressing a number of new or accelerated trends, resulting in a significant need for transitional debt capital.

“The way people are using commercial real estate is fundamentally changing, requiring landlords and tenants alike to evaluate how they utilize assets and reposition for the post-pandemic environment. This is driving a significant and growing demand for shorter-term transitional or bridge real estate loans, with borrowers increasingly looking to alternative lenders like Värde to structure the right loan for their property. We believe the types of flexible financing solutions Värde provides will continue to be important over the coming year as the market adjusts to new behaviors and tenant demands,” said Jim Dunbar, Partner and Head of Real Estate Lending at Värde.

Fourth Quarter Loans

Loans closed over the quarter include:

  • $148 million for the refinance of a hospitality property in San Diego, California.
  • $120 million for the acquisition of a hospitality property in Miami, Florida.
  • $115 million for the acquisition of a multifamily property in St. Petersburg, Florida.
  • $110 million for the acquisition of a hospitality property in Phoenix, Arizona.
  • $88 million for the refinance of a hospitality property in Montauk, New York.
  • $69 million for the acquisition of a multifamily property in Houston, Texas.
  • $53 million for the refinance of a hospitality property in Washington, DC.
  • $52 million for the refinance of a multifamily property in Lewisville, Texas.
  • $47 million for the refinance of a hospitality property in Fort Lauderdale, Florida.
  • $35 million for the acquisition of a student housing property in Miami, Florida
  • $29 million for the acquisition of a multifamily property in Carlsbad, California.
  • $29 million for the refinance of a hospitality property in Aurora, Colorado.
  • $28 million for the refinance of a multifamily property in Los Angeles, California.
  • $23 million for the refinance of an office property in Los Angeles, California.


Värde’s CRE Lending Program

Värde has 28 years of experience investing in real estate and credit markets and has originated over $5 billion in CRE loans since 2017. The firm has a dedicated team of experienced origination, asset management and capital markets professionals.

Through its CRE lending program, Värde is a non-recourse, balance sheet lender financing all major asset classes, plus mixed-use and self-storage. Värde focuses on providing flexible capital and certainty of execution to meet the needs of experienced real estate investors.

In 2021, Värde closed the first-ever fully hotel-backed CRE CLO at $527 million, which was comprised of 11 loans originated to help hospitality properties bridge to a post-pandemic recovery, as well as the firm’s largest CRE CLO at $928 million.

The firm has a clean securitization track record, having experienced zero losses to date, no overcollateralization test breaches, and five of its nine securitizations successfully paid off.

About Värde Partners

Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $85 billion since inception and manages approximately $14 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde has offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit www.varde.com.

Värde Partners Closes First Hotel-Backed CRE CLO at $527 million

MINNEAPOLIS and NEW YORK – Värde Partners, a leading global alternative investment firm, today announced the closing of the first commercial real estate collateralized loan obligation (CRE CLO) to be entirely hotel-backed. This is Värde’s fifth CRE CLO, and ninth securitization of commercial real estate collateral.

The underlying loans were originated by Värde’s commercial real estate lending platform, through which the firm has funded more than $1 billion of real estate loans in the hospitality sector in 2021.

The securitization’s asset pool has an aggregate initial principal balance of $527 million and consists of 10 floating-rate mortgages secured by 11 full-service hospitality properties. The properties span nine states with an average principal balance of approximately $53 million. Värde offered $208 million of AAA rated bonds and $187 million of non-rated bonds.

“Värde’s strategy for this offering is based on our fundamental view of the hotel industry’s recovery over a two- to four-year period, which we expect will differ across markets and asset types. By applying a robust underwriting process to evaluate market dynamics, geographic trends, and sponsor quality on a deal-by-deal basis, we have been able to package in this transaction what we view to be a highly attractive collection of properties,” said Jim Dunbar, Senior Managing Director at Värde. “This transaction allows us to further expand our lending platform, providing additional borrowers with flexible, reliable and much-needed capital in this challenging environment while underscoring the strength of the CRE CLO market and the heightened demand for alternative lenders.”

Värde’s CRE Lending Program

Värde has 28 years of experience investing in real estate and credit markets and has originated over $5 billion in commercial real estate loans since 2017. The firm has a dedicated team of experienced origination, asset management and capital markets professionals.

Through its commercial real estate lending program, Värde is a non-recourse, balance sheet lender financing all major asset classes, plus mixed-use and self-storage. Värde focuses on providing flexible capital and certainty of execution to meet the needs of experienced real estate investors.

In May, Värde closed its fourth and largest CRE CLO at $928 million. The asset pool consisted of 23 floating-rate mortgages secured by 29 commercial properties.

The firm has a clean securitization track record, having experienced zero losses to date, no overcollateralization test breaches, and five of its nine securitizations successfully paid off.

About Värde Partners

Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $85 billion since inception and manages $14 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde has offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit www.varde.com.

Taylor Morrison and Värde Partners Agree to Land Banking Facility and Joint Venture

Capital will be used to acquire and develop land in the homebuilder’s markets

SCOTTSDALE and MINNEAPOLIS —Taylor Morrison Home Corporation (NYSE: TMHC), the nation’s fifth largest homebuilder, and Värde Partners, a leading global alternative investment firm, have entered into a land banking facility agreement and agreed to a joint venture, opening more than $1 billion in capacity, with the intent to grow, for new land opportunities. Through this strategic relationship, Värde will continue aligning as a significant financial partner in the acquisition and development of residential land and lots across the homebuilder’s markets of operation while Taylor Morrison will develop and manage the homebuilding projects.

Having executed upon the strategy, Värde and Taylor Morrison have already closed multiple projects in Texas, Georgia, Arizona and California. In the coming months, additional developments will begin in the Carolinas and Florida as the partnership continues to scale the platform.

“This relationship combines Värde’s speed and flexibility of capital, as well as our deep experience in U.S. housing, with Taylor Morrison’s trusted reputation in homebuilding and development,” said Brendan Bosman, Managing Director at Värde Partners. “The significant growth in demand for suburban housing has exposed a persistent shortfall in supply, creating substantial opportunities to invest in segments that we believe are well-positioned to outperform the broader market. We have established a strong presence across the nation and already have a substantial pipeline of deals in place.”

“Consistent with our commitment to capital efficiency and strategic growth, we believe our new relationship with Värde enhances our ability to cost-effectively acquire land, manage our portfolio and reduce long-term risk over the course of a housing cycle,” said Taylor Morrison Chairman and CEO Sheryl Palmer. “This collaboration with Värde is a meaningful evolution of our existing asset-light land strategies and is expected to help us achieve our goal of increasing our optioned land position to at least 40 percent in 2022. By remaining disciplined to our rigorous underwriting processes and strategically utilizing these and other land financing tools, we are focused on acquiring return-accretive land parcels to transform into vibrant communities.”

Värde has 28 years of experience investing in real estate, with substantial equity and credit investments in residential land development and homebuilding transactions. This partnership further expands the firm’s U.S. housing footprint in its target markets.

These land financing vehicles offer another layer of sophistication to Taylor Morrison’s existing land strategies, with more programmatic land banking for short-dated holdings and a land venture for longer-dated parcels.

About Taylor Morrison

Headquartered in Scottsdale, Arizona, Taylor Morrison is the nation’s fifth largest homebuilder and developer. We serve a wide array of consumers from coast to coast, including first-time, move-up, luxury and 55-plus active lifestyle homebuyers under our family of brands—including Taylor Morrison, Esplanade, Darling Homes Collection by Taylor Morrison and Christopher Todd Communities built by Taylor Morrison. From 2016-2021, Taylor Morrison has been recognized as America’s Most Trusted® Builder by Lifestory Research. Our strong commitment to sustainability, our communities and our team is highlighted in our latest annual Environmental, Social and Governance (ESG) Report.

For more information about Taylor Morrison, please visit www.taylormorrison.com.

About Värde Partners

Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $85 billion since inception and manages $14 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde employs more than 300 professionals worldwide with offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe.

For more information, please visit www.varde.com.

Värde Partners Closes $602 Million in U.S. Commercial Real Estate Loans

Firm Increases Lending to Hospitality Sector as Traditional Lenders Pull Back

MINNEAPOLIS and NEW YORK – Värde Partners, a leading global alternative investment firm, today announced it closed $602 million in U.S. commercial real estate loan originations across 11 transactions in the third quarter of 2021. In total, Värde has funded $1.7 billion of real estate loans so far this year spanning hospitality, multifamily, office, industrial and mixed-use assets.

“We continue to see significant demand for flexible financing solutions across the commercial real estate landscape, and particularly within the hospitality sector. With nearly every property in some state of transition, Värde’s commercial real estate lending program is focused on providing capital to help businesses navigate the continued impact of the pandemic and position their assets for a strong recovery,” said Jim Dunbar, Senior Managing Director at Värde Partners.

Hospitality Outlook

The pandemic dealt a massive shock to the hospitality sector, one of the hardest-hit markets over the last 18 months. As travel has increased, certain segments of the market have begun to see improved occupancy rates – however, the continued impact of reduced travel and the uncertainty around longer-lasting trends are perpetuating the transitional nature of these assets. Even as hotel valuations have recovered in both public and private markets, operating income is recovering at different rates across markets and by asset type.

Many hotel owners are in need of capital to refinance loans or fund their business plans, such as upgrading or repositioning assets as they emerge from the pandemic. At the same time, many lenders are finding it difficult to advance credit to this sector due to the current operating income levels. The result is an increased demand for shorter-term capital or bridge loans from alternative lenders like Värde.

Värde’s view is that the hospitality sector will ultimately recover and look more like it did pre-pandemic, with new or recently renovated full-service and luxury leisure assets being the first to recover within their individual markets. As such, Värde is focused on lending to quality sponsors with high-potential assets in top U.S. urban and leisure markets.

Third Quarter Loans

Loans closed over the quarter include:

  • $84 million for the refinancing of an office property in Lewisville, Texas.
  • $78 million for the refinancing of a hospitality property in Miami, Florida.
  • $73 million for the refinancing of a multifamily property in Phoenix, Arizona.
  • $55 million for the refinancing of a hospitality property in Scottsdale, Arizona.
  • $54 million for the refinancing of a hospitality property in Bloomington, Minnesota.
  • $53 million for the refinancing of a hospitality property in Nashville, Tennessee.
  • $48 million for the acquisition of a hospitality property in New York City, New York.
  • $48 million for the acquisition of a hospitality property in Atlanta, Georgia.
  • $41 million for the acquisition of a hospitality property in Nashville, Tennessee.
  • $37 million for the acquisition of an office property in Miami Beach, Florida.
  • $31 million for the acquisition of an industrial property in Spring Valley, California.

Värde’s CRE Lending Program

Värde has 28 years of experience investing in real estate and credit markets and has originated over $4 billion in commercial real estate loans since 2017. The firm has a dedicated team of experienced origination, asset management and capital markets professionals.

Through its commercial real estate lending program, Värde is a non-recourse, balance sheet lender financing all major asset classes, plus mixed-use and self-storage. Värde focuses on providing flexible capital and certainty of execution to meet the needs of experienced real estate investors.

In May, Värde closed its fourth and largest CRE CLO at $928 million. The asset pool consisted of 23 floating-rate mortgages secured by 29 commercial properties.

About Värde Partners

Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $80 billion since inception and manages $15 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde employs more than 300 professionals worldwide with offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit www.varde.com.

Värde Partners Promotes New Global Co-Heads of Business Development and Investor Relations

NEW YORK and LONDON – Värde Partners, a leading global alternative investment firm, today announced it has promoted Shannon Gallagher and Mona Girotra to Global Co-Heads of its Business Development and Investor Relations (BDIR) group reporting to the firm’s President, Jon Fox.

“Shannon and Mona have great relationships with our investors and have consistently demonstrated strong results and leadership skills,” said Fox.  “I’m excited to see them take this next step and I look forward to working closely with them and our investors as they oversee our fundraising and IR team.”

Based in London, Shannon joined Värde in 2018 and had previously been responsible for leading business development in Europe, the Middle East, and Asia Pacific. Mona joined Värde’s New York office in 2018 and had previously led the team’s Product Specialist and Consultant Relations functions.

About Värde Partners

Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $80 billion since inception and manages $15 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde employs more than 300 professionals worldwide with offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit www.varde.com.