Lennar to Buy CalAtlantic

Builder Online

By John McManus

Lennar’s $5.7 billion acquisition bid for No. 5-ranked CalAtlantic would create the largest home building enterprise by revenue ($17 billion in 2016 revenues, according to our Builder 100 data), and would signal an ongoing consolidation of clout among fewer, larger players in the late innings of the current housing recovery.

Plus, just as D.R. Horton’s acquisition earlier this year of Forestar secured the nation’s No. 1 builder by volume a mega landbank of lots, Lennar’s purchase accomplishes a similar goal, adding CalAtlantic’s pipeline of nearly 65,000 homesites in 41 markets and 17 states, and strengthens Lennar’s evolving customer segmentation strategy–ranging from the multifamily for-rent and single-family rental end of the spectrum to the higher-end and 55+ community development opportunity offered by WCI and former Standard Pacific land positions.

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About author

Michael Anderson
Michael Anderson 249 posts

Over the course of his 30-year career, Michael Anderson has worked in the residential development industry in the Pacific Northwest, Northern California and Southern California. He has acquired residential land in excess of $300M for both land development and homebuilding entities and has overseen the construction of approximately 2500 homes. Currently, in semi-retirement, and based out of Newport Beach, CA, Michael continues to invest in and stay abreast of the land markets.

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