Lennar, one of the nation’s largest homebuilders, plans to spin off a land banking subsidiary, Millrose Properties.
The Miami-based firm, led by co-CEOs Jon Jaffe and Stuart Miller, filed a registration with the Securities and Exchange Commission on Wednesday. Millrose will be a publicly traded company focused on “land purchases, horizontal development and homesite option purchase agreements,” for Lennar and possibly other developers, according to a press release.
Lennar declined to comment further.
As part of the spin-off of Millrose, Lennar is contributing between $5 billion and $6 billion of developable or prospective homesites, as well as $1 billion in cash, documents filed with the SEC show. Of the cash transferred to Millrose, $900 million will be used to buy the land holdings of Fayetteville, Arkansas-based Rausch Coleman Companies. Lennar announced it was acquiring Rausch Coleman in November, according to published reports.
Millrose intends to operate as a real estate investment trust (REIT) beginning in 2025, the SEC filing shows. Its website describes Millrose as a “first-of-its-kind public land banking REIT” and a “tax-efficient, income-generating, long-term investment vehicle.”
The Millrose website shows its headquarters will be at the Miami address of Kennedy Lewis Investment Management, the firm hired to manage the firm. Millrose will also operate in Kennedy Lewis’ New York City office and in a Fort Washington, Pennsylvania office, the website shows.
Kennedy Lewis executives leading Millrose include: co-founder Darren L. Richman as CEO and president of Millrose; managing director Robert Nitkin as chief operating officer; managing director Rachel Presa as general counsel and secretary; and director Adil Pasha as chief technology officer. Garett Rosenblum will be chief financial officer.