Hunton Andrews Kurth LLP recently advised on the spin-off of a newly created REIT, Millrose Properties, Inc., by Lennar Corporation. The spin-off, which was completed on February 7, 2025, created a separate publicly traded REIT as part of Lennar’s shift toward an asset-light, land-light business model. As a new public REIT focused on homesite option arrangements, Millrose will acquire and fund development of homesites for Lennar and other home builders and deliver fully developed homesites under a land option contract. Millrose is an externally-managed REIT that is managed by affiliates of Kennedy Lewis Investment Management.

Hunton represented the standalone Millrose business on various aspects of the spin-off, including tax and corporate structuring, SEC considerations, negotiation of the external management agreement, and real estate finance matters. Hunton is continuing to represent Millrose following the spin-off.

The Hunton team was led by tax partner George Howell and real estate capital markets practice head Rob Smith and included assistance from real estate capital markets partner Kate Saltz and associates Tianlu Zhang and Elizabeth White, real estate partner Susan Saslow and associates Allison Schmidt and Christopher Adan.