Lennar serves as gateway for Chinese homebuyers
Last year, leading American homebuilder Lennar broke ground on a massive development project in southeastern San Francisco. Covering more than 300 hectares, the undertaking is transforming a large former naval base into a mixed-use area. The company is building in Hunters Point Shipyard and Candlestick Point about 12,000 homes and more than 278,000 square metres of commercial and office space. The site will also feature designated areas for parks, research and development, and clean technology, among others.
"San Francisco is one of the most land-constrained cities in America, and these are the last opportunities for new communities to be built in it," says Chris Marlin, president of the company's international division. Research indicates that homes in these new communities are a high-value opportunity because people are able to purchase the homes at a discount of more than 25 per cent compared with the prevailing property prices in other parts of the city.
What is interesting, however, is how Lennar is making such opportunities accessible to buyers from the other side of the world in China. Drawing on its reputation for quality, value and integrity, the publicly traded company listed on the New York Stock Exchange has become a trusted gateway for Chinese families and investors looking to purchase homes in the United States.
"We present Chinese clients and investors some really fantastic partnership opportunities at the strategic and retail sales levels, and we do it in a very culturally aware way," Marlin says.
With its highly experienced management and strong government relationships that extend to the federal level, Lennar welcomes collaborations with Chinese banks, real estate developers and other investors. The company participates in a robust EB-5 immigration investment programme that provides green cards to Chinese and other foreign nationals who invest money and create jobs in the US. The Shipyard project alone has several Chinese investors who have received conditional visa approvals, while more are expected to come in.
Lennar matches the brisk demand from China with a broad portfolio of properties in the US. Present in 55 cities across 19 US states, the company is the second-largest American homebuilder by volume. Since its founding in 1954, Lennar has grown to cover various areas of the industry from residential and commercial development to real estate investment management. Its subsidiary, Lennar Multifamily, is one of the largest American developers of rental homes for multiple families. Lennar's homebuilding unit builds the celebrated NextGen home, a product that matches the culture of extended families in Asian countries such as China.
