Avila Real Estate Capital Announces Second Close of Latest Debt Fund; Reaches $200 Million in Commitments

D.R. Horton, Toll Brothers, and Century Communities Join as Strategic Homebuilder Investors as AREC Builds Momentum Toward $1 Billion Target

SAN FRANCISCO (March 9, 2026) — Avila Real Estate Capital (AREC), a leading private credit provider to the U.S. homebuilding industry, today announced the second close of its latest debt fund, bringing total capital closed to approximately $200 million.

D.R. Horton, Toll Brothers, and Century Communities, three of the largest US homebuilders have invested in the fund. These industry leaders participate alongside a diversified group of institutional investors, insurance funds, public and corporate pensions, and family office investors. The fund continues to target $1 billion in total capital and expects to hold its final close on June 30, 2026.

The second fund builds on AREC’s established strategy of providing structured senior credit solutions to land developers and homebuilders, including project-level, first mortgage loans for land development and first lien revolver facilities to support vertical construction. The strategy is designed to address the ongoing structural undersupply of housing in the United States by providing flexible capital to experienced operators across key growth markets.

“We are seeing strong momentum in this second fund as investors recognize the durable opportunity in residential development credit,” said Tony Avila, CEO of Avila Real Estate Capital.  “We are proud to welcome D.R. Horton, Toll Brothers, and Century Communities as partners in our second fund. In addition to our institutional investor, pension fund, and endowment partners, their participation underscores the growing institutional recognition that reliable structured capital is essential to solving the housing supply crisis. Combined with Hillwood as our anchor LP, we have some of the largest builders and developers in the country supporting our strategy.”

AREC’s model combines institutional lending discipline with hands-on residential development expertise. Through its affiliate, Builder Advisor Group, the firm maintains deep relationships across the homebuilding ecosystem, enabling it to evaluate projects through both financial and operational lenses.

“Access to well-structured capital for land developers is critical to maintaining a healthy pipeline of finished lots for the industry,” said Derrick Hoffman, Vice President of Land Strategies for D.R. Horton. “AREC’s platform is aligned with that objective, providing disciplined credit solutions that help experienced developers bring land to market efficiently. We view this relationship as strategically important to supporting long-term housing supply.”

The fund’s strategic investor base now includes both Hillwood, which participated as a lead partner at the first close, and leading public homebuilders, further reinforcing alignment with operators across the residential development ecosystem. AREC’s first debt fund closed in July 2025 with more than $700 million in total commitments and co-investments and has provided capital for more than 10,000 new homes. Strategic homebuilder investors in that fund include Sumitomo Forestry/DRB Group, LGI Homes, Century Communities, Hayden Homes, and Dream Finders Homes. Five of the top 20 homebuilders in the Builder 100 have joined AREC funds as limited partners, underscoring strong industry alignment.

About Avila Real Estate Capital
Avila Real Estate Capital is a private credit platform with deep, hands-on experience in residential real estate. With a background in developing land and building homes, AREC understands client needs from the ground up. Through its affiliate Builder Advisor Group, AREC maintains a strategic network of relationships with leading homebuilders, developers, and capital partners. Backed by a full-service team, AREC brings institutional discipline and creative structuring to deliver flexible financing solutions tailored to each project.

Media Contact:
marketing@avilacapllc.com

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Source: Builder 100 2025

This press release is not a solicitation of an offer to purchase securities and may not be relied upon in connection with the purchase or sale of any security. Interests in Avila RE Capital, LLC funds, if offered, will only be made pursuant to a confidential offering memorandum and subscription documents.

The investors shown are current LPs in AREC funds as of February 2026. Their inclusion does not constitute an endorsement or recommendation. These investors have not been compensated for being listed and have not approved this press release. Their investment decisions were based on their own independent due diligence and objectives. Their investment is not indicative of future results or their satisfaction with performance.

Builder Advisor Group is a member of FINRA and SIPC.