Lennar and WCI join to create Florida homebuilder powerhouse

Lennar will spend $643 million to acquire luxury homebuilder WCI Communities Inc., tying up two of the largest home construction companies in Florida as the U.S. real estate market continues to heat up.

Despite the monthly decline reported this week by the Commerce Department, construction activity has accelerated for many this year. Builders are increasingly optimistic about sales growth, a reflection of how steady job gains are leading more Americans to purchase new houses and sign leases for new apartments.

Bonita Springs-based WCI doesn’t expect the deal to delay home deliveries for customers, a spokesman said in an email. The company has projects in Palm Beach and Broward counties. WCI built the vast majority of the nearly 3,000 homes at Heron Bay in northwest Broward.

WCI also was known for its highrise condominium developments, but the builder struggled during the housing bust before seeking bankruptcy protection in 2008. It later restructured and continued operations.

Charles Brecker, a South Florida real estate lawyer and partner in the Miami office of Arnstein & Lehr, said in a statement that WCI’s land holdings made the company an attractive takeover target for Lennar.

“WCI still owns some very valuable parcels on both coasts of Florida suitable for development, and this acquisition unquestionably affords Lennar with that viable opportunity over the next 10 years or more,” Brecker said.

On Tuesday, Miami-based Lennar reported a 5 percent jump in thirdquarter profit and its revenue continues to rise as it delivers more homes.