Newhall Ranch community will move forward.
For many, the prospect of our economic recovery in Santa Clarita has been tied to the outcome of Newhall Land. The 125-year old company responsible for Valencia had entered Chapter 11 along with its parent company LandSource, only to emerge last week as a reorganized, healthy company.
Now called Newhall Land Development, LLC, the company retained Newhall Land as an asset, including Newhall Orchard, Valencia Water Company at TPC and Valencia Golf Club.
According to Marlee Lauffer, Vice President of Marketing & Communications for Newhall Land, entering Chapter 11 allowed for the "most effective means for LandSource and its subsidiaries to preserve the value of their business, meet postpetition obligations, and maintain constituents' confidence while it worked with creditors to achieve a long-term restructuring."
As a result of the restructuring, Newhall Land Development carries no corporate debt and has $90 million in cash for future projects.
Newhall Land is now backed by ownership that consists of a group of investment funds led by Anchorage Advisors LLC, Third Avenue Management LLC, funds affiliated with Och-Ziff Capital Management Group, LLC, funds affiliated with Marathon Asset Management, LP and TPG Credit Management, L.P., along with Lennar Corp.
Newhall Land will be managed by Emile Haddad, the CEO of Five Point Communities Management, Inc., a newly formed management company jointly owned by Haddad and Lennar. Haddad resigned as Lennar's Chief Investment Officer to assume his new duties at Five Point and will be joined by more than 20 former Lennar executives. Five Point will augment Newhall's existing management team, which has more than 150 years of combined real estate and land development experience.
"Newhall Land is proud of its 100-year tradition of land stewardship and its community of Valencia, a world-class master plan development with more than 20,000 homes built and 60,000 current jobs," Haddad said. "Tomorrow we will roll up our sleeves and focus full attention on bringing final neighborhoods and 40,000 additional new jobs to Valencia and perfecting Newhall Ranch entitlements."
Newhall Ranch is a master planned community development that hopes to build 20,000 new homes and provide 20,000 local jobs. The project is a major part of the future for Newhall Land Development.
Newhall Ranch has already garnered specific plan approval and tentative tract maps are now in process. Lauffer says that the project will dedicate over 7,800 acres of open space, which she anticipates will result in a park 1 ½ times bigger than Griffith Park. Newhall Land Development hopes to start construction of Newhall Ranch in the next few years, and a total build out timeline lasting 25 years is expected.