"The Millrose spin wasn't simply financial engineering... It was a bet that land... could be separated, institutionalized and delivered back to builders as an on-demand service."
"Richman told us... the actual composition had never been done. That composition... had three tests: Could the Lennar flywheel function in real time? Could third-party builders adopt the model at scale?"
"So far, one year in, on each front, Millrose can point to validation... It expanded beyond its anchor [Lennar] client, growing to 17 builder counterparties."
"We've been able to kind of prove out the story, Richman said. It has not seen a single option termination... in a housing environment... going on two years of downcycle conditions."
Millrose Properties' spin-off from Lennar marked a significant shift in land-banking strategies. The initiative aimed to separate land from homebuilding, making it an on-demand service for builders. CEO Darren Richman emphasized the need to prove the model's viability through three tests: real-time functionality, scalability for third-party builders, and performance during market downturns. After one year, Millrose has successfully cycled land in and out of Lennar's portfolio, expanded its client base to 17 builders, and maintained stability without option terminations despite ongoing downcycle conditions in the housing market.
Read at www.housingwire.com
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