Lennar Corporation is a construction and real estate company based in Miami, Florida. In 2017 this company is the largest home construction company in the United States after the purchase of CalAtlantic House. The company is ranked 260th in Fortune 500. The company operates in 21 states and has Rialto Capital Management, sponsors of 6 private equity funds investing in real estate and commercial mortgage lending initiatives for securitization. The Company also develops and maintains ownership interest in 53 apartment communities. The name Lennar is the portmanteau of the first names of the two founders of the company, Leonard Miller and Arnold Rosen.
Video Lennar Corporation
History
Initial history
The company dates back F & amp; R Builders, a company founded in 1954 by Gene Fisher and real estate developer Arnold P. Rosen. In 1956, Lenard Miller (later named University of Miami Miller School of Medicine), a 23-year-old entrpeneur with 42 lots in Miami-Dade County, Florida, invested $ 10,000 and partnered with the company. In 1969 the company achieved an equity base of $ 1 million, and in 1971, Miller and Rosen renamed Lennar Corporation. That year the company became a public company through an initial public offering of $ 8.7 million. It became listed on the New York Stock Exchange in 1972.
In 1977, the company acquired Mastercraft Homes, based in Phoenix, Arizona, for approximately $ 2 million, as well as Womack Development Company. That year Rosen also retired, staying in the company as a director. In 1989, Lennar began the "Everything's Included" program, which placed additional options on homes built as part of the lump sum charged to the property as a whole. In 1992, after Hurricane Andrew, the company faced several lawsuits from homeowners accusing the careless quality of the building. In 1997, Stuart Miller, son of co-founder Leonard Miller, also took over the company. Leonard Miller died in 2002. In 2005 the company was added to S & amp; P 500.
2000s
In November 2006, chairman Robert J. Strudler, who previously led the US Home Corp. to be acquired by Lennar in 2000, died. In December 2007, during the subprime mortgage crisis, the company sold 80% interest in 11,000 properties at 40% of the book value they previously stated to Morgan Stanley. In early 2008, the company reported a 60% year-over-year drop in new home deliveries due to the financial crisis of 2007-2008. In 2007, Lennar also founded Rialto Capital Management, which comes from aqcuire depressed real estate and mortgage debt. In 2011, a former businessman and convict named Barry Minkow was involved in a racketeering scheme to manipulate the company's shares, causing the stock to lose 26% of its value in a single day. Minkow was sentenced to 5 years in prison, and was ordered to pay $ 584 million in damages. San Diego's real estate developer, Nicolas Marsch III, hired Minkow to support his claim that Lennar tricked Marsch from millions of dollars into the private golf community.
In 2012 the company's house orders returned to levels before 2008. That year the company started a new program called "Lennar Next Gen", which focused on building homes for multi-generational households. The following year, in 2013, Lennar Commercial Investors was established in order for Lennar to enter the commercial real estate market. In February 2018, the company acquired CalAtlantic House. The $ 9.3 billion merger makes the company the largest home builder in the US.
Maps Lennar Corporation
Acquisitions
1980s and 1990s
Immediately after its establishment, the company acquired Bert L. Smokler & amp; The Company and Dreyfus Interstate Development Corp., entered the home building industry directly in the US Midwestern. In 1984, the company acquired H. Miller & amp; Children for $ 24 million. In 1989, the company acquired Richmond American Homes of Florida for $ 18 million. In 1992, they also earned $ 1 billion Amerifirst real estate portfolio in a joint venture with Morgan Stanley. Then in 1993, they acquired Westinghouse's $ 2 billion loan portfolio in a joint venture with Lehman Brothers. In 1995, the company acquired Friendswood Development Company from Exxon, and acquired the California Bramalea company.
In 1996, the company acquired Winncrest Homes. The Company also acquired 2,200 hectares (8.9 km) of land and took over the management of Coto de Caza, California, the census designated site and its gated community, from Chevron Corporation. In 1997, the company acquired West Venture Homes. In 2002 the company merged with Pacific Greystone, and acquired Theyst Venture Homes, 2700 homes in the North Natomas Community, and 800 San Diego households. In 1998, the company acquired North American companies, Winncrest Homes, Polygon, and ColRich Communities. The company also acquired 3 home construction companies held in California for $ 370 million. The following year the company acquired Eagle Home Mortgage and Souththeyst Land Title.
2000s
In 2000, the company acquired US Home Corporation for $ 476 million in cash and stock, which resulted in the company doubling. In 2001, the company acquired a home construction operation from Fortress Investment Group. In 2002, the company acquired Patriot Homes based in Columbia, Maryland, Barry Andrews Homes in Baltimore, Maryland, and Don Galloway Homes, The Genesee Company, Cambridge Homes and Sunstar Communities. It also acquired Concord House and House Summit, both based in Chicago. The company later acquired 650 hectares (2.6 km 2 ) on Mare Island, in a closed Navy base, for redevelopment. In 2003 Lennar later acquired Coleman House.
In 2004, the company acquired Newhall Land and Farming Company for $ 990 million. The company also acquired Queens Property assets for $ 33.8 million, in addition to Connel-Barron House and American Classical Homes. In 2005, Lennar acquired Barker Coleman Homes, and the company acquired 3,718-acre Marine Corps Air Station El Toro for redevelopment. In 2006, twenty of the company's previous acquisitions changed their name to Lennar, the year in which they also acquired 13 acres in Anaheim, California for $ 56 million. It also separates the commercial services division, LNR Property Corporation, which was acquired by Starwood Capital Group in 2012.
In March 2013, the company acquired 20.6 acres in Norcross, Georgia for $ 7.59 million. In April 2014, the company proposed the construction of 572 single family homes and 124 townhouses in Forsyth County, Georgia. In June 2014, the company began selling homes in the former naval shipyard in Bayview-Hunters Point, San Francisco. In February 2016, the company acquired 143 acres in Miami Lakes for $ 74.4 million and announced plans to build 267 single-family homes and 238 townhouses on the site. The company also sold 167 units of new apartment complexes in Chicago. In November 2016, the company sold 252 units of apartment complexes in Orlando, Florida for $ 42.83 million.
In January 2017, the company acquired a parcel in Charlotte, North Carolina for $ 23 million a plan announced to build a mixed-use property on the site. In February 2017, the company acquired WCI Communities, which operates in Florida, for $ 643 million. In March 2017, the company acquired Westchester Pavilion in White Plains, New York for $ 56.6 million and announced plans to redevelop the site into 700 apartments and 90,000 square feet of retail space. In April 2017, the company acquired 225 hectares of farmland in Wake County, North Carolina for $ 25.7 million. In October 2017, the company acquired land in Plantation, Florida and announced plans to build a 271-unit luxury apartment complex on the site.
In May 2018, Lennar announced that Amazon Alexa will be incorporated into all 35,000 new homes built this year.
In 2014, 7.27% of Lennar is owned by Vanguard Group (with Vanguard Windsor Inv also having 2.53% and Vanguard Mid Cap Index having 1.51%), and 7.14% owned by Wellington Management Group. 2.25% is owned by ETFs iShares US Home Construction.
References
External links
Source of the article : Wikipedia
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