X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SANTA CLARITA, CA-LandSource Communities Development LLC has emerged from bankruptcy as a new company called Newhall Land Development LLC after a Chapter 11 reorganization that restructured more than $1.2 billion in debt and raised $259 million of new capital. Newhall Land Development’s primary investment is the Newhall Land and Farming Co., which owns 15,000 acres of land in the Santa Clarita Valley, about 30 miles north of Downtown Los Angeles.

LandSource, which was a joint venture between Miami-based Lennar Corp., LNR and CalPERS, was one of the largest national master planned community developers in the US and filed a voluntary Chapter 11 bankruptcy petition in the US Bankruptcy Court in Delaware almost 13 months ago. With its exit from Chapter 11, Newhall Land Development becomes “one of the only major real estate development companies to reorganize and emerge from bankruptcy in the current recession,” according to the law firm of Greenberg Traurig, which represented Barclays Bank Plc as the plan proponent and administrative agent for LandSource’s $1.2 billion super-priority debtor-in-possession first lien credit agreement. The law firm also advised the steering committee of secured lenders under the credit agreement.

Newhall Land Development is “financially strong with more than $90 million of cash and no debt on its beginning balance sheet,” according to a statement by the new company. It says it will have “the additional resources and financial flexibility necessary to focus on planning and developing the remainder of the existing community of Valencia and the future Newhall Ranch.” The company consists primarily of the Newhall Land and Farming Co. in Los Angeles County, the Newhall Orchard, Valencia Water Co. and the TPC Valencia Golf Club.

A recent statement by Miami-based Lennar said that, as part of the bankruptcy reorganization plan, Lennar will invest approximately $140 million in exchange for a 15% equity stake in the reorganized Newhall. The remainder of the ownership group 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 LP.

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.

Although Newhall Land Development is a new company, the Newhall Land Co. is one of the oldest and largest developers in Southern California, having developed the master-planned community of Valencia, comprising 20,000 homes as well as commercial developments, in the Santa Clarita Valley. Newhall owns some of the last remaining large, undeveloped land in the greater Los Angeles area. It also owns 700 acres of commercial land and other property in the Santa Clarita Valley.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.