GTIS Partners LP and Hovnanian Enterprises, Inc. (NYSE: HOV) completed a $200 million joint venture to develop homebuilding communities across five states, according to a company statement.

Under the partnership, GTIS invested $150 million in equity capital while Hovnanian contributed $50 million, representing 25% of the total capital requirement. The companies project total build-out costs of approximately $545 million, representing $617 million in home value.

The portfolio includes seven homebuilding communities with approximately 907 homes remaining at closing. The properties span multiple housing types including active adult single-family homes, market-rate single-family homes, townhomes with affordable units, and low-rise condominiums.

At closing, most communities were under construction and through land development, with all but one actively selling homes. The portfolio had 125 homes sold but not yet closed, representing approximately $82 million in revenue backlog.

"This portfolio represents a mix of product types, price points, and geographic diversity across seven communities, many of which are follow-on investments to communities we have previously partnered on with Hovnanian," said Ed McDowell, Partner and Head of U.S. Acquisitions for GTIS Partners.

Ara Hovnanian, Chairman and Chief Executive Officer of Hovnanian Enterprises, said the companies were building on their partnership history through various housing cycles.

The joint venture brings the total home value of the GTIS-Hovnanian homebuilding partnership to $8 billion. GTIS Partners manages $4.9 billion in gross assets and focuses on residential and industrial investments. Hovnanian Enterprises, founded in 1959, operates as a homebuilder across 13 states.