Miami Construction Developments
Lennar Corp., the Miami-based home construction giant, plans to spin off its land holdings valued at $5 billion to create a new entity, Millrose Properties. The new company will act as a land bank and will be largely funded by Lennar’s cash and services. This strategic move opens new opportunities for shareholders and aims to qualify Millrose as a real estate investment trust (REIT). Meanwhile, South Florida is witnessing significant development initiatives, including affordable housing projects and substantial development deals.
Miami, the vibrant hub of Florida, is buzzing with exciting news as Lennar Corp., a key player in the home construction industry, has unveiled plans to spin off its land holdings, which are valued at an impressive $5 billion. This strategic move aims to create a new entity called Millrose Properties, which will serve as a land bank for Lennar.
Millrose Properties is designed to own a variety of properties while engaging in site work and holding exclusive homesite option contracts with Lennar and other potential builders. To get the ball rolling, this new company has filed a Form S-11 registration with the Securities and Exchange Commission, marking the beginning of its journey towards official launch, which is awaiting final approval from Lennar’s board.
As part of this plan, Lennar intends to distribute 80% of Millrose Properties’ shares to its existing Class A and B shareholders while retaining 20% for itself. This means that shareholders can look forward to becoming a part of this exciting new venture.
Lennar is not just handing over properties but also providing Millrose Properties with its homesite option purchase platform, a wealth of developable homesites estimated between $5 billion to $6 billion, essential employee services, and a generous cash infusion of up to $1 billion. Out of this cash, Millrose Properties plans to allocate around $900 million to acquire Rausch Coleman Homes, a respected homebuilder based in Arkansas. Furthermore, Millrose Properties aims to qualify as a real estate investment trust (REIT), making it a noteworthy player in the real estate market.
In a significant move, the Public Health Trust has selected Related Urban Development Group for a major development project at the Jackson Health System’s main campus. This deal consists of a 99-year lease with estimated payments totaling around $1.05 billion. The project will feature two impressive apartment buildings—one standing at 25 stories and the other at 27 stories—as well as a hotel with 128 rooms and a large parking garage with 782 spaces. What’s more, half of the units will be set aside for affordable housing, addressing a crucial need in the area.
The winds of change are certainly blowing through Miami and the greater South Florida area, with Lennar’s grand plans and ongoing development projects promising exciting times ahead for residents, investors, and the real estate landscape alike.
News Summary At just 17, Kai Trump, granddaughter of former President Donald Trump, has made…
News Summary North Carolina is reeling from the losses inflicted by Hurricane Helene, which claimed…
News Summary Fort Lauderdale is experiencing a significant transformation in its real estate landscape, with…
News Summary Waymo is set to introduce its self-driving ride-hailing service, Waymo One, in Miami…
News Summary Silver Airways, a key regional airline serving Florida, has filed for Chapter 11…
News Summary Jacksonville, Florida, is witnessing the construction of a mortgage-free home for U.S. Army…