One thing you can say about Lennar: If they like an employee they hold on to them. The Herald said today that Anthony Seijas, past President of the Latin Builders Association and Lennar‘s former Regional Vice President for Southeast Florida, was appointed to the Board of Rialto Capital Management. I said to myself: "What, he left Lennar?" Then I looked up Rialto Management, it is a foreign Corporation formed in June 2009. Here is the address info:
700 NW AVENUE, 4TH FLOOR
C/O LENNAR CORPORATION
Seijas apparently has been with Rialto since 2008 according to the website (? Corp. was formed in 2009 but he worked there since 2008? Actually I saw a lot of "Rialto" Corporations, one was formed just last month - Rialto Capital Advisors - didn't see any Corporations before 2009 but I am not going to argue with their timeline). Anyway, looks like Anthony didn't go far, Rialto is just a spin-off of Lennar. The best part of this post: The Graphic I found on the Rialto Website!! Make sure you check it out. They say that Rialto was created in 2007(?) to:
"Take advantage of turmoil in today's residential market." Here is what they do:
Rialto's Website:
Rialto is a real estate investment management company focused on distressed real estate asset investment, management and workouts. Rialto was founded in 2007 by Jeffrey P. Krasnoff, the former Chief Executive Officer of LNR Property Corporation, which during his tenure, was one of the nation’s largest purchasers and special servicers of CMBS. The Rialto senior management team brings, on average, over 20 years of broad experience in residential and commercial real estate investment, finance, development and management, with a particular emphasis on turnaround situations, particularly during previous real estate market downturns in the United States and overseas. A majority of the management group of Rialto also spent a portion of their careers working in the housing and related finance businesses at, or in partnership with, homebuilder Lennar Corporation.
I would like to know more about that $525 million land venture mentioned in the graphic. Here is more on that "Go Private" deal also in the graphic:
Commercial Property News, reported August 30 2004:
LNR Property Corp., a Miami Beach-based real estate investment, finance and management company with more than $3 billion in assets, agreed to be bought by Cerberus Capital Management L.P. in a $3.8 billion deal.
I also found this February press release from Lennar:
Lennar Completes Transactions With the FDIC to Acquire Approximately $3.05 Billion of Real Estate Loans
MIAMI, Feb 10, 2010 /PRNewswire via COMTEX/ -- Lennar Corporation (NYSE: LEN and LEN.B),one ofthe nation's largest homebuilders, today announced the closing of two structured transactions with the Federal Deposit Insurance Corporation ("FDIC").
The transactions represent the purchase of two portfolios of loans with a combined unpaid balance of $3.05 billion. A subsidiary of Lennar, Rialto Capital Advisors, will conduct the day-to-day management and workout of the portfolios. Lennar acquired indirectly 40% managing member interests in the limited liability companies created to hold the loans for approximately $243 million (net of working capital and transaction costs), including up to $5 million to be contributed by the Rialto management team. The FDIC is retaining the remaining 60% equity interest and is providing $627 million of non-recourse financing at 0% interest for 7 years. The transactions include approximately 5,500 distressed residential and commercial real estate loans from 22 failed bank receiverships.
Stuart Miller, President and Chief Executive Officer of Lennar Corporation, said, "Acquiring and working out distressed real estate loans was a large and extremely profitable part of our business during the last major real estate down cycle in the early 1990s. We are pleased to return to this business and honored to partner with the FDIC to manage, work through and add value to these portfolios of real estate loans. We take great pride in understanding market cycles and identifying the opportune point of entry. As we have noted on our quarterly conference calls, we have been carefully preparing to invest in this space for the last two years. Our strong cash position and proven track record in this area enables us to capitalize on this market cycle and create long-term value for our shareholders. We expect these transactions will be accretive to 2010 earnings."
Jeffrey Krasnoff, Chief Executive Officer of Rialto, added, "We have been assembling and incubating the Rialto management team within Lennar since late 2007. Many on our team have worked together and with Lennar for several decades. Our track record of successfully managing the resolution of distressed real estate loan portfolios puts us in a unique position at this point in the cycle. We are very pleased to be partnering with the FDIC and look forward to the opportunity to build on our business relationship."
Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. The Company builds affordable, move-up and retirement homes primarily under the Lennar brand name. Lennar's Financial Services segment provides primarily mortgage financing, title insurance and closing services for both buyers of the Company's homes and others. Previous press releases and further information about the Company may be obtained at the "Investor Relations" section of the Company's website, www.lennar.com
Rialto Capital is a real estate investment management company focused on distressed real estate asset investment, management and workouts. Rialto's senior management team brings, on average, over 20 years of broad experience in residential and commercial real estate investment, finance, development and management. A Rialto related entity is also a sub-advisor to Alliance Bernstein in one of eight Public Private Investment Partnerships sponsored by the US Treasury to purchase residential and commercial mortgage backed securities.
Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our business, financial condition, results of operations, cash flows, strategies and prospects. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described under the caption "Risk Factors" in Item 1A of our Annual Report on Form 10-K for our fiscal year ended November 30, 2009. We do not undertake any obligation to update forward-looking statements, except as required by Federal securities laws.
3 comments:
That's right: they wreck the economy, then go into business scavenging the remains. It's called creative destruction.
Jail
They purchased large track of land in Texas from Resolution Trust when the S and L's when down. $500M at half book. This is what they do. They wreck the economy and then act like vultures. It's a pattern. Goldman Sachs doing shady stuff. They are responsible for a lot of the damage here. I really resent them. I wish people would boycott their developments.
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