Denver executives Mizel and Mandarich leaving parent of Richmond American Homes at end of year

When Sekisui House, a Japanese homebuilder, announced it would purchase M.D.C. Holdings at the start of the year, an unanswered question was how long the Denver-based homebuilder’s founder Larry Mizel and his top lieutenant, David Mandarich, might hang around.

There is an answer. Mizel and Mandarich are scheduled to leave the company they had steered for five decades on Dec. 31.

Sekisui completed its $4.9 billion purchase of Colorado’s largest homebuilder, best known as the parent of Richmond American Homes, on April 19, a fairly quick turnaround for what was the country’s largest homebuilder acquisition since 2017.

“We are grateful to the Sekisui House team, which has shown the utmost respect and professionalism to us and our valued employees throughout the acquisition process and during the initial months of our integration. This experience only reinforces our belief that our employees and our customers are in good hands as a part of the Sekisui House family,” Mizel and Mandarich said in a joint statement issued Tuesday evening to announce their departure.

The pair said that while proud of what they accomplished in the company’s 50-year history, including the construction of over 250,000 homes, they were “even more proud of the team we have built and what they will accomplish in the future as a part of the combined organization.”

Faced with accelerating population declines in Japan, Sekisui made a concerted push to acquire U.S. homebuilders starting in 2017 with Woodside Homes Co. It added Holt Homes in 2021, Chesmar Homes in 2022, and Hubble Homes in 2023.

Those plans took a big leap forward with the acquisition of M.D.C., which constructs about 10,000 homes a year, ranking it as the country’s 11th largest builder. Sekisui’s U.S. subsidiary plans to target about 15,000 home closings next fiscal year, which would rank it in the fifth spot.

“We thank them for their cooperation during the acquisition and invaluable guidance in transitioning MDC to our new ownership. Their accomplishments will positively influence our organization for years to come. We congratulate them for their excellent leadership and careers in our industry,” said Toru Tsuji, CEO of Sekisu House subsidiary SH Residential Holdings, in a statement.

Mizel founded Mizel Development Corp. (MDC) in 1972 and brought Mandarich on board in 1977 to oversee operations. The pair have had a tenure unrivaled among Colorado’s top public company executives and weathered several real estate cycles.

Sekisu House, based in Osaka, launched in 1960 and has delivered more than 2.6 million homes directly and through its acquired subsidiaries. It is known for its cutting-edge construction technology and energy-efficient designs.

Mizel, 82, is an active presence on Denver’s philanthropy scene and has been instrumental in establishing several Jewish institutions, including the Simon Weisenthal Center in Los Angeles, the Museum of Tolerance Jerusalem and the Mizel Museum and Counterterrorism Education Learning Lab in Denver.

Based on the purchase price of $63 a share, Mizel’s 13.4% holdings in M.D.C. shares had an estimated value of $642 million, while Mandarich’s 8.17% ownership stake was worth $391.1 million, according to a proxy filing made with the U.S. Securities and Exchange Commission in February.