Millrose Properties has amended its Founder's Rights Agreement with Lennar and its Management Agreement with its external manager to formally establish and facilitate a single-family rental (SFR) / build-to-rent (BTR) investment strategy. These amendments, effective August 27, 2026, provide the company with greater flexibility to raise capital and manage assets for this new business line.
Key Details
- Founder's Rights Agreement: The agreement with Lennar was amended to classify all capital raised for acquiring "BTR Properties" as "Excluded Capital." This allows Millrose to fund its rental strategy without triggering Lennar's capital priority rights.
- Management Agreement: The agreement with Kennedy Lewis Land and Residential Advisors LLC was updated to expand the company's investment guidelines, explicitly including the acquisition and operation of single-family homes as rental properties.
- Operational Impact: The amendments updated the definition of "Reimbursable Expenses" to cover property-level operating costs for the new single-family rental portfolio, aligning the manager's operational scope with the new strategy.