Lennar picks up land assemblage in Homestead

Homebuilders are increasingly buying property in south Miami-Dade

Miami /
Aug.August 06, 2019 10:32 AM
Stuart Miller and Southwest 152nd Avenue in Homestead

Stuart Miller and Southwest 152nd Avenue in Homestead

UPDATED, Aug. 6, 10:20 p.m.: Lennar Corp. paid $22.1 million for roughly 85 acres in Homestead as it continues its strategy of buying land in south Miami-Dade County.

The Miami-based homebuilder bought the property, west of Southwest 152nd Avenue, for about $260,000 per acre. Clifford Lincoln, a trustee of Keys Gate III, tied to Keys Gate Realty, is the seller.

The property is zoned for 770 residences, which breaks down to 117 single homes, 349 townhomes and 304 villas, according to the South Dade Newsletter.

Lennar and other homebuilders have been buying up land in South Dade, in part due to the rising cost and lack of land elsewhere in the county.

In May, Lennar launched sales and broke ground on a new housing community near Princeton.

In April 2018, Lennar paid $4.5 million for 32.7 acres of farmland near Zoo Miami. The company also spent nearly $11 million in 2017 for about 77 acres in Homestead, just west of the Turnpike along Mowry Drive and Southwest 152nd Avenue.

Among homebuilders, Lennar is one of the most aggressive land buyers. Historically, the strategy has paid off and has led to Lennar emerging as the country’s largest homebuilder thanks to its reasonably priced single-family homes.

Recently, a number of indicators, however, show that the housing market is slowing down.

While the company’s profit, revenue and home deliveries rose in the second quarter thanks to lower mortgage rates and strong incentives offered to homebuyers, Lennar also reported that tariffs on Chinese goods are also costing the company an average of about $500 per home.

That could be a bad sign for homebuilders since labor costs have risen significantly in recent years, making profitability more challenging.


Related Articles

arrow_forward_ios
MG3 Group executives (from top) Marcelo Saiegh, Hernan Leonoff and Gustavo Bogomolni with Everglades Preparatory Academy and Avant Garde Academy (MG3 Group)
MG3 Group sells Florida charter school portfolio for $242M
MG3 Group sells Florida charter school portfolio for $242M
Mark and Ian Sanders with the townhomes (Fifteen Group)
Fifteen Group sells off last piece of Homestead townhome portfolio for $101M
Fifteen Group sells off last piece of Homestead townhome portfolio for $101M
PulteGroup's Brent Bake a rendering of the site in Avenir
Pulte buys site at Avenir in Palm Beach Gardens, plans 390-home development
Pulte buys site at Avenir in Palm Beach Gardens, plans 390-home development
Frank Mendez with Patricio Cordero (inset) and the property (Linkedin, Google Maps)
Pinecrest homeowners fight lien from celebrity builder they allege was running a kickback scheme
Pinecrest homeowners fight lien from celebrity builder they allege was running a kickback scheme
Renderings of Kevlar Gardens (Bellon Architecture)
Miami-Dade rezoning paves way for 321-unit multifamily project in Homestead
Miami-Dade rezoning paves way for 321-unit multifamily project in Homestead
Donald R. Horton and a map of the development site (D.R. Horton)
D.R. Horton advances 211-unit townhouse project in Pembroke Pines
D.R. Horton advances 211-unit townhouse project in Pembroke Pines
Toll Brothers CEO Doug Yearley Jr. (Toll Brothers)
Toll Brothers launches sales at new luxury community in Davie
Toll Brothers launches sales at new luxury community in Davie
Al Garcia and Homestead-Miami Speedway (Getty, iStock)
Homestead-Miami Speedway sells industrial site to Dallas developer
Homestead-Miami Speedway sells industrial site to Dallas developer
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...