An H&R REIT subsidiary has secured the maximum US$52 million through a development trust initial public offering designed to fund two Florida multi-family real estate projects.

Immediately following the offering, Lantower Residential Development Trust acquired an indirect 70.9% stake in the two projects. Their development is expected to commence shortly.

Toronto-based H&R plans to buy the projects once they are developed and retained an option to do so.

The units sold for US$10 and C$10, based on their respective classes.

The trust was created by H&R’s Texas-based subsidiary Lantower Residential LP to expedite the development of the two Florida multi-family projects, which have a budgeted cost of US$210 million. The projects are located in Largo, which is part of the Tampa market, and Kissimmee in the Orlando area.

Altogether, the projects will comprise 601 units.

H&R has agreed to provide two land parcels for the projects and invest up to an additional US$10 million if the minimum offering size of US$42 million is achieved. Thomas Hofstedter, H&R’s executive chairman and CEO, said previously that the REIT expects to acquire the properties after they are developed.

Toronto-based CIBC World Markets served as the sole agent for the offering. H&R will not receive any proceeds from the deal.

Lease-up is expected to commence in the first and second quarters 2026 for the Largo and Kissimmee projects, respectively.