Rausch Coleman Homes sells for more than $1 billion

Fayetteville-based Rausch Coleman Homes, the nation’s 21st-largest homebuilder, was recently acquired in a more than $1 billion transaction. The deal was first announced in early Febuary, with more detail recently provided.

Miami-based Lennar Corp., the second-largest homebuilder in the United States, purchased Rausch Coleman’s homebuilding operations. Lennar spin-off company Millrose Properties acquired about 24,000 homesites of Rausch Coleman Homes for $900 million. Lennar (NYSE: LEN) and Millrose (NYSE: MRP) are publicly traded on the New York Stock Exchange.

Millrose purchased land in the seven states where Rausch Coleman is active, including Alabama, Arkansas, Florida, Kansas, Missouri, Oklahoma and Texas. Lennar also acquired its homesites. Rausch Coleman was building more than 5,000 homes each year with an economic impact of nearly $2 billion annually, according to a news release.

“We’re proud of the legacy Rausch Coleman Homes has built over the last 70 years,” said John Rausch, chairman and CEO of Rausch Enterprises. “Lennar is a company closely aligned in commitment to quality and to people. I am confident in the team at Lennar and look forward to watching them continue helping families experience for themselves the value of homeownership.”

Rausch, 40, was chairman and CEO of Rausch Coleman Homes for almost two decades. He said there were no plans to sell the private, faith-based company before an area broker connected the company with Lennar in March 2024.

He said the meeting led to others, and “I think they were blown away by what they had found in the Ozark mountains.” Lennar’s spin-off of Millrose and the opportunity to acquire one of the largest private homebuilders in the United States and enter new markets were motivating factors for the deal, which was announced in November.

The over $1 billion transaction “opened the door” for Rausch to start a real estate development company, The Calara Group, the release shows. It will focus on large-scale developments comprising single-family, multifamily and commercial development.

“At a time when many homebuilders are adopting a ‘land light’ strategy, Calara will become a resource for Lennar and other partners as we work together to transform raw land into thriving communities,” Rausch said. “We’ve got a very aggressive growth plan for Calara.”

A majority of Rausch Coleman’s land development teams and staff at the Fayetteville home office will transition to Calara and Rausch Enterprises, a Fayetteville-based family-holding company with a portfolio of real estate and energy assets. Rausch Coleman’s regional offices and about 85% of its staff transitioned to Lennar. It also has a Fayetteville location at the office of Rausch Enterprises, which has about 130 employees.

Rausch said Lennar will continue to use the Rausch Coleman Homes name for some time because of the regional brand recognition. Rausch Enterprises comprises The Calara Group and the following companies Rausch created:
• Single-family home rental company American Residential Group, formed in 2016.
• Excavation and sitework contractor ADG, established in 2016.
• Engineering firm LTS Engineering, started in 2013.
• Oil and gas exploration company EnergyWorks, founded in 2008.

Rausch said he also plans to start a family foundation.