Daybreak, the massive master-planned community in South Jordan, has been acquired by Larry H. Miller Real Estate (LHMRE) from its previous owners, Värde Partners of Minneapolis. Financial terms of the deal were not disclosed.
LHMRE’s purchase includes more than 1,300 acres of undeveloped land, ownership interest in a portion of the development’s existing commercial assets along with future commercial development and the remaining undeveloped residential property in the community. Excluded from the purchase are existing Daybreak homes and certain other undisclosed assets.
“We are excited to add the Daybreak community, one of the largest master-planned communities in the country, to our growing real estate portfolio,” said Larry H. Miller Group of Companies CEO Steve Starks in a press statement. “We look forward to building on the already established success of this community with the remaining undeveloped commercial area and the thousands of residences to be built within this regional destination area.”
Originally developed in 2004 by Rio Tinto Kennecott at the base of its Bingham Canyon Mine, Daybreak was purchased by Värde in June 2016. Rio Tinto said at the time that it needed to create cash flow and focus on its mining operations during a time of turmoil in the mining industry caused by plunging commodity prices.
Värde diversified the community’s housing options, adding some affordable housing products and increasing accessibility to more homebuyers. Home sales increased from approximately 450 to over 1,000 per year following Värde’s acquisition. The company also expanded the commercial development within Daybreak, including an expansion of the University of Utah Medical Center campus, the South Jordan VA Clinic and a new Salt Lake County library, which is set to open this fall.
“Today, Daybreak consists of a vibrant mix of urban homes, workplaces, shops, cafés and restaurants and outdoor recreation opportunities,” LHMRE said in its announcement of the purchase. “The development is focused on long-term sustainability and managed growth that includes multi-modal transportation choices, a variety of housing choices, local employment opportunities, open space and biodiversity, water conservation, energy-efficient infrastructure, education support and partnerships and diversity and inclusivity.”
Daybreak is Utah’s top-selling master-planned community and No. 5 in the nation based on total home sales, according to RCLCO Real Estate Advisor’s “Top-Selling Master-Planned Communities Report” released earlier this year.
Salt Lake County Mayor Jenny Wilson said the county looks forward to working with Larry H. Miller Real Estate “and other stakeholders to develop plans that support job growth, open spaces and recreation, strong infrastructure and community destinations.”
Brendan Bosman, managing director at Värde, said, “While Daybreak is truly unique, it is a great example of Värde’s approach to investing in and growing master-planned communities throughout the U.S. Daybreak is an ecosystem consisting of a talented development team, planners, homebuilders, financial partners, the city of South Jordan and residents all working together to create a vibrant community. We’d like to express our deep appreciation to each of these groups for their many contributions to making Daybreak one of the top master-planned communities in the country. We are proud of where the community is today, and we are looking forward to following Daybreak’s continued success under the Larry H. Miller Group’s stewardship.”
“The Daybreak acquisition aligns perfectly with our real estate development and property management capabilities, and our team’s proven ability to collaborate with our partners to deliver innovative solutions in the communities where we live, work and recreate,” said Brad Holmes, president of Larry H. Miller Real Estate. “This transaction creates an opportunity for Larry H. Miller Real Estate to not only expand our real estate footprint and holdings, but to also creatively and proactively address regional growth through mixed-use planning and development. We are a builder of communities and are committed to the continued success of this nationally ranked and thriving master-planned development.”
“We couldn’t be more excited to partner with Larry H. Miller Real Estate and their leadership to ensure we continue to serve the citizens of South Jordan in meaningful ways,” said South Jordan Mayor Dawn Ramsey. “The city of South Jordan and its residents have a vested interest in the long-term outcomes and success of Daybreak. We are focused on smart growth, sustainable economic development, and a robust quality of life. With a significant portion of Daybreak undeveloped, we are thrilled to welcome the Larry H. Miller team to South Jordan and look forward to working with them to benefit current and future homeowners, employers and businesses.”
Headquartered in Sandy, the Larry H. Miller Group of Companies is a privately owned family business with operations located across the western United States. The LHM Group’s focus falls within the primary categories of automotive, sports, entertainment, finance, insurance, real estate and healthcare. Established in 1986, Larry H. Miller Real Estate develops and manages a variety of real estate properties, including automotive dealerships, movie theatres, office space, mixed-use residential, townhomes, apartments and construction projects.
Land Advisors Organization of Holladay served as the broker for the acquisition.