Brookfield Properties has acquired Newland, one of the nation’s biggest developers of master-planned communities, as the company positions itself to capitalize on housing demand with the sector’s biggest commodity – land.
The deal gives Brookfield control of Newland’s coast-to-coast master-planned community portfolio of 20 active projects across 10 states to add to its own current 30-community land portfolio, creating a high-quality land pipeline to expand its homebuilding operations.
“Adding Newland’s scale to our already robust mix as a fully integrated land developer is another major step toward our long-term real estate development growth goal,” said Adrian Foley, rookfield’s managing partner, Real Estate and President, Development.
“As the public homebuilding market is searching for controlled lot supply, and looking to the lot manufacturing business to provide that service to support their expanding businesses, we see an innovative lot sales process for the land assets and an operational skillset being rewarded for the product it produces. We’re extremely excited to join forces with Newland and bring this and other services to the homebuilding community across North America.
“In addition, we aim to assemble a capital base to invest in new land developments alongside Brookfield, and we see this as a very rewarding proposition for ourselves and our future investment partners.”
Bob McLeod, former executive chairman at Newland, called the sale a “game-changer” for both companies “with an enviable, advantageous breadth of land holdings and operations.”
In addition to significantly widening Brookfield Residential’s geographical footprint , the acquisition enhances its strategy to grow its development business and capitalize on the high demand for land and lot supply.
McLeod will take on a new role as Executive, Land Investments at Brookfield Properties. Drawing on more than 50 years of experience, he will provide strategic input into the company’s land acquisition and investment strategy across the U.S.
The addition of Newland’s approximately 35,000 lots – in addition to 8,500 multifamily apartments and 2,200 acres of commercial land – places this portfolio with approximately 80,000 lots controlled in the U.S.
The combined footprint now spans across major real estate markets, including Atlanta, Austin, Charleston, Dallas-Ft. Worth, Denver, Hawaii, Houston, Greater Los Angeles area, Phoenix, Portland, Raleigh-Durham, San Diego, San Francisco/Bay area, Seattle-Tacoma, Tampa, Washington D.C. and Wilmington.
In addition, Brookfield Residential has 30,000 lots controlled in the Canadian marketplace.
Access to additional land combined with Brookfield Properties’ vast development capabilities in retail, multifamily and office paves the way for the enormous growth of mixed-use master-planned communities.
Word that Brookfield Residential has reached agreement to acquire Newland Communities’ coast-to-coast crown jewel master-planned community portfolio, and its management company is a literal landscape-changer.