Real Estate 'Vulture' Funds Face Unexpected Competition from Builders
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Funds set up to invest in distressed real estate are running into some unexpected competition – national builders that, far from being on the ropes, have hoarded cash and are now aggressive in the market.
Starwood Land Ventures, Vanguard Land, Walton Street Capital, D.E. Shaw & Co., and other would-be “vulture” funds that wanted to cash in on the overheated, devastated residential real estate industry have run into other problems as well – such as the unwillingness of banks to sell properties, the Sarasota Herald-Tribunereported.
Despite hundreds of millions of dollars in land position write-downs, publicly held builders like NVR Ltd., Lennar Corp., Toll Bros., Pulte Homes and others are active in the market, and have managed to hoard lots of cash, the newspaper said.
