Lennar officials declined comment for this article until they meet with area residents Jan. 31 to discuss plans for the planned 4,000 home community of single-family, multifamily, golf-course enterprise. Information for this article was confirmed by Minneola, FL government staffers.

Lennar hasn't made a formal application for a development permit yet with the East Central Florida Regional Council based in Winter Park, FL. But the homebuilder's officials, headed by president/CEO Stuart A. Miller, have met with elected officials in Minneola (Pop, 5,435) to outline the venture.

Lennar also isn't disclosing the seller or the price paid for the 1,850 acres. But area brokers familiar with land prices in south Lake County tell GlobeSt.com on condition of anonymity the virgin dirt off County Road 561A, just south of another comparable $1 billion planned venture, Sugarloaf Mountain, will come in at about $1 per sf ($43,560 per acre) or a total $80 million.

"Even if the deal goes down for 50 cents per sf, you're still looking at a $40 million land acquistion alone," a longtime Clermont, FL land broker tells GlobeSt.com.

The land purchase would be the largest in decades in Central Florida, including the metro Orlando market, according to GlobeSt.com research.

Sugarloaf Mountain developers Karick Price and Willoughby T. Cox of Orlando, meanwhile, also plan to meet with area residents this month to outline scaled-down versions of their 10-year-old project originally blueprinted for 2,000 homes on 1,434 acres adjacent to the Lennar site. Both projects are looking at 20-year-buildout periods with the earliest groundbreakings in 2004 if all of the local, regional and state permitting is approved, local brokers tell GlobeSt.com

The Lennar site is split by the Florida Turnpike, a crucial development advantage if the homebuilder can convince the state to build a new $10 million interchange on its property. Lennar would donate land and money to help build the interchange, south Lake brokers intimate with the project tell GlobeSt.com on condition of anonymity.

Besides being a development magnet for Lennar, the interchange would also relieve congested traffic at State Road and U.S. 27, the heaviest-trafficked road in south Lake County, local planners tell GlobeSt.com. Getting a deep-pockets owner such as Lennar to pay for most of the interchange cost also appeals to pro-development Minneola officials who now face vitriolic protests from neighborning Montverde and Clermont, FL environmentalist groups, brokers say.

"You've got a heck of a good and bad scenario down there right now," Dean Fritchen, senior associate, Arvida Realty Services Commercial Division, Winter Park, FL, tells GlobeSt.com. "National developers and retailers have discovered the area, just west of Downtown Orlando, and can buy the land at reasonable prices that are sure to escalate over the next 10 years."

However, if planned growth doesn't tie in with residents' concerns over fresh drinking water supplies, air pollution, road traffic and existing wildlife, "they can tie up the projects in the courts for years and eventually make the venture unprofitable," Fritchen tells GlobeSt.com.

The estimated $1 billion Lennar project comes as the south Florida company prepares to announce year-end financials in a Jan. 9 Internet conference call. Lennar's fiscal year ended Nov. 30. The homebuilder predicted in December earnings per share for the fourth quarter will top the First Call consensus estimate of $1.81 per share by 25%.

In a prepared Dec. 18 statement, company president Stuart Miller said Lennar had paid off a $1 billion revolving credit facilities program and ended the year with cash in hand of $800 million. The company's net debt-to-total capital ratio was 30%, ahead of Lennar's earlier projected goal of 35% to 45%.

For the nine months ended Aug. 31, Lennar revenue increased 36% to $4.07 billion. Net income totaled $255 million, up from $119.7 million in the comparable 2000 period.

Lennar's common on the New York Stock Exchange at noon at $46 per share, the same range the stock closed on Jan. 4. Trading volume was 74,500. The stock's 52-week high-low was $49.88 and $31.04 per share. There are 63.93 million shares outstanding. Lennar's market capitalization is $3 billion.

Instant Insights /

Lennar Plans $1 Bil Mixed-Use Project Next to Controversial Sugarloaf Mountain Site

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