Lennar

Last updated

Lennar Corporation
Company type Public
Industry Home construction
Founded1954;70 years ago (1954)
Founders
  • Leonard Miller
  • Arnold Rosen
Headquarters Miami postal address, Florida, U.S.
Key people
Production output
Increase2.svg 73,087 new home deliveries (2023)
RevenueIncrease2.svg US$34.23 billion (2023)
Decrease2.svgUS$5.366 billion (2023)
Decrease2.svgUS$3.938 billion (2023)
Total assets Increase2.svgUS$39.23 billion (2023)
Total equity Increase2.svgUS$26.58 billion (2023)
Number of employees
Increase2.svg 12,284 (2023)
Divisions Quarterra
Village Builders
CalAtlantic Homes
Lennar Mortage
Lennar Title
LenX
Website www.lennar.com
Footnotes /references
Financials as of November 30,2023. [1]
Lennar's former headquarters in Fontainebleau, Florida Lennar headquarters.jpg
Lennar's former headquarters in Fontainebleau, Florida
Lennar's branch office in San Ramon, California Lennar Corp San Ramon office.jpg
Lennar's branch office in San Ramon, California

Lennar Corporation (Lennar) is a home construction company based in Miami-Dade County, Florida. [1] As of 2023, it is the second-largest home construction company in the United States based on the number of homes sold. [2] [3] Lennar has investments in multifamily and single family residential rental properties, luxury development, property technology with LenX, and mortgage lending from Lennar Mortgage.

Contents

With total annual revenue of over $34 billion in 2023, Lennar operates in 26 states and 75 markets across the nation. [4] In 2023, the company was ranked 119th on the Fortune 500. [5] Lennar stock (LEN) was added to the New York Stock Exchange in 1982 and as of 2024 has a market cap of around $47 billion. [6]

The name Lennar is a portmanteau of the first names of two of the company's founders, Leonard Miller and Arnold Rosen. [7]

History

20th century

Lennar dates back to F&R Builders, a company founded in 1954 by Gene Fisher and real estate developer Arnold P. Rosen. In 1956, Leonard Miller, who later became the namesake of the Miller School of Medicine at the University of Miami, a 23-year-old entrepreneur that owned 42 lots in Miami-Dade County, Florida, invested $10,000 and partnered with the company. [8]

In 1969, Lennar reached an equity base of $1 million, and by 1971, Miller and Rosen changed the name to Lennar Corporation. [8] That year the firm became a public company via an initial public offering, [1] raising $8.7 million. It was listed on the New York Stock Exchange in 1972. [8]

In 1973, the company acquired Mastercraft Homes, based in Phoenix, Arizona, for approximately $2 million, as well as the Womack Development Company. Shortly thereafter, the company established operations in the Midwestern United States, purchasing Bert L. Smokler & Company, based in Detroit, Michigan, and Dreyfus Interstate Development Corp., based in Minneapolis–Saint Paul. [9] [10]

Lennar acquired H. Miller & Sons in 1984 for $24 million. [11]

In January 1989, the company acquired Richmond American Homes of Florida for $18 million. [12]

In February 1992, the company acquired Amerifirst's $1 billion real estate portfolio in a joint venture with Morgan Stanley. [13]

In October 1992, following Hurricane Andrew, the company faced several lawsuits from homeowners alleging careless building quality. [14] [15] [16]

In July 1993, the company formed a joint venture with Westinghouse Electric Corporation and Lehman Brothers to acquire a $2 billion face-value loan portfolio from Westinghouse Electric Corporation for $1.1 billion. [17]

In 1995, the company acquired Friendswood Development Company from Exxon, [18] and acquired California company Bramalea. [8]

In 1996, the company acquired Winncrest Homes. The company also acquired 2,200 acres (8.9 km2) acres in and took over management of Coto de Caza, California, a census-designated place and a gated community, from Chevron Corporation. [19]

In 1997, Stuart Miller, the son of co-founder Leonard Miller, became CEO of the company. Leonard Miller died in 2002. [20] [21] Stuart Miller served as Lennar's CEO until 2018 when he pivoted to an executive chairman position. As Lennar CEO, Stuart Miller is credited for navigating the company through the US housing crisis from 2007 to 2010. [22]

In 1997, the company acquired West Venture Homes. [23] In 2002, the company merged with Pacific Greystone, and acquired Theyst Venture Homes, which held 2700 homes in the North Natomas Community and 800 in San Diego. In 1998, the company acquired North American Title Company, Winncrest Homes, Polygon, and ColRich Communities. [8] The company also acquired 3 closely held home construction companies operating in California for $370 million. [24] The following year the company acquired Eagle Home Mortgage and Souththeyst Land Title. [8]

21st century

In 2000, the company acquired U.S. Home Corporation for $476 million in cash and stock, [25] [26] [27] which resulted in the company doubling in size. [8]

In 2001, the company acquired home building operations from Fortress Investment Group. [28]

In 2002, the company acquired Patriot Homes based in Columbia, Maryland, [29] Barry Andrews Homes in Baltimore, Maryland, as well as Don Galloway Homes, The Genesee Company, Cambridge Homes, and Sunstar Communities. [8] It also acquired Concord Homes and Summit Homes, both based in Chicago. [30]

The company then acquired 650 acres (2.6 km2) on Mare Island, in a closed Navy base, for redevelopment. [31]

In 2003, Lennar acquired Coleman Homes. [8]

In 2004, the company acquired Newhall Land and Farming Company for $990 million. [32] [33] [34] The company also acquired the assets of Queens Properties for $33.8 million, [35] in addition to Connel-Barron Homes and Classic American Homes. [8]

In 2005, Lennar acquired Barker Coleman Homes, [8] and the company acquired the 3,718-acre Marine Corps Air Station El Toro for redevelopment. [36] [37]

In 2006, Lennar spun off its commercial servicing division, LNR Property Corporation, which was acquired by Starwood Capital Group in 2012. [23]

In November 2006, Lennar chairman Robert J. Strudler died. [38] [39]

In December 2007, during the subprime mortgage crisis, the company sold an 80% interest in 11,000 properties for 40% of their previously stated book value to Morgan Stanley. [40]

In 2007, Lennar founded Rialto Capital Management, which was originated to acquire distressed real estate and mortgage debt. [41]

In 2008 and 2009, former businessman and convicted felon Barry Minkow engaged in an extortion scheme, spreading false information about the company that resulted in its stock price falling 26% in one day. [42] Minkow was sentenced to 5 years in prison and was ordered to pay $584 million in restitution. [42] [43]

San Diego real estate developer Nicolas Marsch III hired Minkow to back his claims that Lennar cheated Marsch out of millions of dollars on a private golf community. [42] After a trial, a Superior Court judge decided in July 2010 that Marsch actually owed Lennar $17 million for the development. [42] A subsequent civil suit filed by Lennar against Marsch resulted in a $1 billion judgement in December 2013 for Lennar, $802 million in damages and $200 million in punitive damages. [44] [45]

In February 2017, the company acquired WCI Communities, which operated in Florida, for $643 million. [46]

In 2018, Burger King moved into a new headquarters down the street from its old one, and Lennar moved into Burger King's former headquarters in the Waterford District near Miami International Airport. [47]

In February 2018, the company acquired CalAtlantic Homes. [48] The same year, Lennar developed a venture capital arm, Lennar Ventures, dubbed LenX. In 2021, LenX announced strategic partnerships with companies ICON and Veev. [49] With Veev's collapse in 2023, LenX acquired the company. [50]

Corporate affairs

Lennar Foundation

Founded in 1989, the Lennar Foundation receives $1,000 per home sold by the company to fund Focused Acts of Caring and various grants, with a focus on supporting at-risk children, medical research, and other philanthropic efforts. [51] The foundation also partners with the Miami Dolphins Challenge Cancer initiative and regularly donates to the Sylvester Comprehensive Cancer Center at the University of Miami.

Facilities

Lennar is headquartered in Miami as part of the Waterford Business District located near the Miami International Airport neighboring other large companies. The company moved into the new 200,000 square feet facility in 2019 as part of a lease and later purchased the property in 2023. [52] Other corporate office locations include Dallas and Irvine, California in addition to dozens of Lennar Welcome Home Centers across the nation.

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References

  1. 1 2 3 "Lennar Corporation FY 2023 Form 10-K Annual Report". U.S. Securities and Exchange Commission. January 26, 2024. 5505 Waterford District Drive, Miami, Florida 33126 - Despite the "Miami, FL" postal address, the facility is in an unincorporated area in Miami-Dade County.
    See: "2020 CENSUS - CENSUS BLOCK MAP: Miami-Dade County, FL" (PDF). U.S. Census Bureau. p. 42 (PDF p. 43/154). Retrieved August 13, 2024. Blue Lagoon Dr
  2. ↑ "The Top 100". builderonline.com. 2023. Retrieved October 13, 2023.
  3. ↑ "The Top 100". Hanley Wood.
  4. ↑ "Lennar 2023 Annual Report" (PDF). Lennar. Retrieved July 18, 2024.
  5. ↑ "Housing market affordability is so strained that this Fortune 500 homebuilder is offering a fixed 4.25% mortgage rate in some communities". Fortune. Retrieved October 14, 2023.
  6. ↑ "Lennar Corporation History". www.lennar.com. Lennar. Retrieved July 18, 2024.
  7. ↑ "About Lennar". Lennar Corporation. Retrieved August 24, 2018. 1971 Leonard and Arnold combine their names to rename the company Lennar. That same year, Lennar Corporation becomes a public company.
  8. 1 2 3 4 5 6 7 8 9 10 11 Carsrud, Alan L.; Brännback, Malin (2011). Understanding Family Firms: Case Studies on the Management of Crises, Uncertainty and Change. Springer Science+Business Media. pp. 93–94. ISBN   9781461408666.
  9. ↑ "Lennar Corporation". Encyclopedia.com.
  10. ↑ "AETNA LIFE WILL BUY 100% OF AIMS GROUP". The New York Times . April 17, 1973.
  11. ↑ "Obituaries: Howard H. Miller, Home Builder" . Sun-Sentinel . January 6, 1998.
  12. ↑ "NIGHTMARE DREAM HOMES" . Orlando Sentinel . January 23, 1989.
  13. ↑ "Amerifirst's Assets Sold". The New York Times . Associated Press. February 28, 1992.
  14. ↑ "Florida Builders Gird for Lawsuits Over Homes Damaged in Storm". The New York Times . October 4, 1992.
  15. ↑ Myerson, Allen R. (September 3, 1992). "Investing Into the Wind: An Odd, Volatile Game". The New York Times .
  16. ↑ Belsie, Laurent (October 4, 1992). "Home-Construction Industry in Florida Examined in Wake of Hurricane Andrew". The Christian Science Monitor .
  17. ↑ "Lennar to partner with Westinghouse, Lehman". United Press International . July 12, 1993.
  18. ↑ "LENNAR TO BUY EXXON'S REAL ESTATE UNIT". The New York Times . Reuters. December 8, 1995.
  19. ↑ VRANA, DEBORA (March 14, 1996). "A New Landlord for Coto" . Los Angeles Times .
  20. ↑ "Lennar's founder dies at 69". American City Business Journals . August 5, 2002.
  21. ↑ "Leonard Miller, 69; Led Expansion of the Lennar Corp" . Los Angeles Times . July 29, 2002.
  22. ↑ Larsen, Keith. "Inside the house of Lennar". The Real Deal. Retrieved August 13, 2024.
  23. 1 2 Brown, Eliot (October 24, 2012). "Starwood to Buy LNR Property" . The Wall Street Journal .
  24. ↑ "LENNAR ADDING TO HOLDINGS IN SOUTHERN CALIFORNIA". The New York Times . Bloomberg News. April 9, 1998.
  25. ↑ "LENNAR AGREES TO BUY U.S. HOME FOR $476 MILLION". The New York Times . Bloomberg News. February 18, 2000.
  26. ↑ "Lennar to acquire U.S. Home Corp. in major merger". American City Business Journals . February 18, 2000.
  27. ↑ Petruno, Tom (February 18, 2000). "Lennar to buy U.S. Home for $36 a Share". Los Angeles Times .
  28. ↑ "Lennar Corp. buys Sunstar Homes from Fortress Group". American City Business Journals . December 21, 2001.
  29. ↑ "Lennar wraps up acquisition of Patriot Homes". American City Business Journals . January 24, 2002.
  30. ↑ "Lennar buys two Chicago firms". American City Business Journals . August 13, 2002.
  31. ↑ Pasco, Jean O. (March 21, 2005). "In Vallejo, a Lesson in Converting El Toro" . Los Angeles Times .
  32. ↑ "LNR, Lennar close $1B Newhall Land buy". American City Business Journals . January 28, 2004.
  33. ↑ Perez, Evan (July 22, 2003). "Lennar and LNR Set a Pact To Purchase Newhall Land" . The Wall Street Journal .
  34. ↑ "COMPANY NEWS; REAL ESTATE DEVELOPER SOLD FOR $990 MILLION" . The New York Times . Bloomberg News. July 22, 2003.
  35. ↑ Howard, J. Lee (February 23, 2004). "Lennar to buy Queens". American City Business Journals .
  36. ↑ "Former Marine base El Toro goes to Lennar homes". American City Business Journals . February 17, 2005.
  37. ↑ Pasco, Jean O. (February 18, 2005). "With El Toro Sold, What's Next?" . Los Angeles Times .
  38. ↑ "Robert J. Strudler, 64, Chairman of Lennar". The New York Times . November 13, 2006.(subscription required)
  39. ↑ "Robert J. Strudler, 64; board chairman of home builder Lennar" . Los Angeles Times . November 11, 2006.
  40. ↑ Isidore, Chris (December 3, 2007). "Builder dumps homes in Morgan Stanley deal". CNN .
  41. ↑ Blum, Wilson (September 30, 2019). "2019 SUMMER INTERNSHIP SERIES: WILSON BLUM, RIALTO CAPITAL". Cornell University .
  42. 1 2 3 4 Parloff, Roger (January 5, 2012). "Barry Minkow: All-American con man". Fortune .
  43. ↑ Whelan, Robbie (January 5, 2012). "Minkow Sentenced to 5 Years" . The Wall Street Journal .
  44. ↑ Barrett, Paul M. (December 20, 2013). "American Hustle: The CEO, the Ex-Partner, the Pastor, and the $1 Billion Shakedown: A scheme to smear homebuilder Lennar backfires". Bloomberg Businessweek .
  45. ↑ Reckard, E. Scott (April 3, 2015). "Court upholds Lennar's $1-billion verdict against San Diego developer" . Los Angeles Times .
  46. ↑ "Lennar Completes Acquisition of WCI Communities" (Press release). PR Newswire. February 10, 2017.
  47. ↑ Bandell, Brian (September 20, 2019). "Lennar signs deal for new headquarters in South Florida" . South Florida Business Journal. Retrieved October 22, 2023.
  48. ↑ "Lennar Completes Strategic Combination with CalAtlantic" (Press release). PR Newswire. February 12, 2018.
  49. ↑ "Lennar's LenX Taps Veev In NoCal Modular Pre-Fab Project". The Builder's Daily. November 19, 2021. Retrieved August 13, 2024.
  50. ↑ Staff, T. R. D. (December 29, 2023). "Lennar acquires proptech Veev, which bombed after raising $600M". The Real Deal. Retrieved August 13, 2024.
  51. ↑ "Lennar Corporation Community Involvement". www.lennar.com. Retrieved September 20, 2024.
  52. ↑ Alvarado, Francisco (December 22, 2023). "Lennar pays $68M for its Miami headquarters property". The Real Deal. Retrieved September 20, 2024.
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