Hillwood announced as lead partner as AREC expands its private credit platform for homebuilders and land developers, following closing of its first fund with over $700 million in total commitments and co-investments earlier this year
SAN FRANCISCO (Nov. 25, 2025) — Avila Real Estate Capital (AREC), a leading private credit provider to the U.S. homebuilding industry, today announced the first closing of its second debt fund with approximately $100 million in investor commitments including a lead partner investment from Hillwood. The fund is targeting $1 billion in total commitments and expects to hold its final close June 30, 2026. The new fund will continue AREC’s strategy of providing flexible financing solutions, including project-level loans for land development and homebuilder revolver lines for vertical construction.
AREC’s novel approach in the private credit market combines financial and institutional lending expertise with the practical experience of licensed contractors and homebuilders on staff. The firm also benefits from strategic investments by major homebuilders and land developers, reinforcing its deep alignment with the industry it serves.
“Our first fund demonstrated the strength and scalability of our lending model,” said Tony Avila, CEO of AREC. “Having Hillwood participate as a lead investor in the second fund reinforces our approach which combines attractive yield, strong collateral, and short-duration exposure in a sector with durable long-term demand. Ultimately our aim is to foster more housing supply in the United States by providing land developers and homebuilders access to operational capital.”
AREC’s first debt fund closed in July of 2025 with more than $700 million in total commitments and co-investments from a diversified base of institutional investors, family offices, and high-net-worth individuals. That fund has capitalized dozens of communities nationwide, helping to finance the construction of over 10,000 new homes.
“Our expertise in residential development and investments complements Avila Real Estate Capital’s focus on residential developers and homebuilders.” said Fred Balda, President of Hillwood Communities. “The partnership reflects alignment between two leading organizations committed to single-family residential development and the housing supply.”
AREC’s funds provide structured credit solutions that help land developers and homebuilders manage growth, maintain liquidity, and meet the increasing demand for for-sale housing across key U.S. markets. The firm is headquartered near San Francisco with personnel in Texas, Colorado, Georgia, Florida, New Jersey, New York, and Pennsylvania.
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.
About Hillwood
Hillwood, a Perot company founded by Ross Perot Jr., is a privately held real estate and investment firm with operations across the United States and Europe. For more than three decades, the company has developed large scale industrial, commercial, residential, aviation, and mixed-use projects, including the 27,000-acre AllianceTexas development. Hillwood’s diversified platform includes industrial development, master planned communities, urban development, construction services, energy operations, data centers, aviation services, and strategic investments. Guided by a long-term commitment to integrity, respect, excellence, and teamwork, Hillwood partners with businesses, communities, and public institutions to support economic growth and sustained regional impact.
Media Contact: marketing@avilacapllc.com
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 the Avila RE Capital, LLC funds, if offered, will only be made pursuant to a confidential offering memorandum and subscription documents.
Builder Advisor Group is a member of FINRA and SIPC.
