Lennar Homes, the homebuilding arm of the Miami-based real estate development giant Lennar Corp., has paid $29 million for a 40-acre, two-parcel lot in Homestead at 28600 SW 132nd Ave., located three blocks east of the Florida Turnpike at the Biscayne Drive intersection, near the Homestead Air Reserve Base.
According to The Real Deal, which first reported the transaction, the seller was the investment firm Treo Group, which bought the land for $13 million in 2018, when it was occupied by residents of the seniors-only Pine Isle Mobile Home Community.
In March 2019, the firm informed the 40 households of the mobile home community, who paid $400 a month for their lot, that the land was being sold and they would need to move by October 31, according to WLRN.
The land is just north of ZIP code 33034, which has the highest poverty rate in Miami-Dade County and a per-capita income of $10,608. That’s less than half of the county’s median per-capita income of $27,000.
That disparity is another indicator of how developers are taking advantage of the price of land in Homestead, which is far cheaper than areas located closer to the urban core. Lennar has two other Homestead projects in the works, including the market-priced Verdana Landings community and the luxury Savannah Ranch Estates (priced at $900,000 and up).
According to Zillow, the median home value in Homestead is $255,830, a 5.8% increase over 2019. That figure is projected to grow another 7.7%, to $275,000, by Oct. 31, 2021.
Three kinds of homes
Lennar will build three communities on the land, all under the Pine Vista brand: The Malibu Collection, comprised of townhomes ranging in size from 1,334 to 1,668 square feet and priced from $256,000-$274,000; the Pasadena Collection, larger townhomes up to 1,828 square feet priced from $272,000-$300,000; and the San Jose Collection, single-family homes priced from $254,000-$420,000.
Lennar Corp. was the top home builder in the U.S. in 2019 in terms of gross revenue, earning $20.56 billion, according to Statista. The bulk of that money was generated by Lennar Homes, with $20.79 billion in net revenue. The company’s other entities, including its financial services and multifamily departments, earned a combined $1.46 billion in net revenue.
The Arlington-based home construction company D.R. Horton, which had occupied the top slot in 2018, slipped to second on the list of top home builders in 2019, with gross revenue of $17.37 billion.