Lennar (NYSE:LEN) has acquired $740 million of distressed real estate from three large financial institutions in an effort to expand investment opportunities as banks and the FDIC continue working through their struggling assets.

The properties, which include mostly non-performing residential and commercial, have an appraised value of $211 million, paid for at a discount and financed using a combination of cash and unsecured debt provided by one of the sellers.

The assets, which consist primarily of development and construction loans and REO relating to land, lots and single- and multi-family residential communities at varying stages of competition, include a total unpaid principal of $529 million.

The homebuilder’s newest addition to its portfolio includes 297 loans and 306 properties. 65% of which are residential and 35% of which are commercial, located in 17 states primarily in the Mid-Atlantic and Southeast regions of the US.

“We have now completed transactions with both the Federal Deposit Insurance Corp. (FDIC) as well as leading financial institutions,” Lennar CEO Stuart Miller Friday said Friday in a statement. “We expect the investment opportunities in both of these sectors to continue to grow as the FDIC and the banks work through their distressed assets.”

Lennar’s Rialto Investments will be responsible for the daily oversight of the portfolio.