Size, scope of Newhall sale dwarfs other valley deals.It started like any number of lunch meetings the executives at Lennar Corp. and Newhall Land and Farming Co. have had over the years as they partnered on development projects. But this one was different. When this lunch was over, Lennar's regional presidents Emile Haddad and Jonathan M. Jaffe, and Newhall CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Gary M. Cusumano, had set into motion a plan that would tam over the reins of what is arguably the single most influential development in the history of the greater San Fernando Valley San Fernando Valley Valley, southern California, U.S. Northwest of central Los Angeles, the valley is bounded by the San Gabriel, Santa Susana, and Santa Monica mountains and the Simi Hills. to a new ownership. In a deal hammered out last year and closed last month, a joint venture of homebuilder Lennar Corp. and commercial developer LNR LNR Local Nature Reserve (United Kingdom) LNR Last Number Redial LNR London News Radio LNR Left/Node/Right (in order binary tree traversal in computer programming) LNR Local Negotiated Rate Property Corp. acquired Newhall Land and Farming Co. The nearly $1 billion price tag puts the sale among the largest of any to occur in the local area in and outside of the real estate sector in the last year. It also brought to a close a decades-old dynasty that presided over the evolution of Valencia from its farmland origins to a thriving suburb and finally, a self-sustaining community in its own right. "It's a major part of Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. County and a major event in local real estate, and at the end of the day, it's going to work out very successfully," said Bert Abel, a vice president at Grubb & Ellis, who has brokered a number of deals in the Valencia and Santa Clarita Santa Clarita, city (1990 pop. 110,642), Los Angeles co., S Calif., suburb 30 mi (48 km) NW of downtown Los Angeles, on the Santa Clara River; inc. 1987. Situated in the Santa Clara valley and nearby canyons, Santa Clarita includes the former towns of Canyon Country, areas. "Certainly it's going to be very different than it has been." There are many differences between the Newhall management and the new owners. Newhall was a local company. Lennar/LNR is a national powerhouse with real estate holdings across the country. Newhall, though publicly traded, was closely held A phrase used to describe the ownership, management, and operation of a corporation by a small group of people. In a closely held corporation, the same people often act as shareholders, directors, and officers, and no outside investors exist. . Lennar/LNR is a division of a public diversified real estate investment and development company based in Miami. But the new management is not entirely new to the Santa Clarita Valley The Santa Clarita Valley is the valley of the Santa Clara River in Southern California. It stretches through Los Angeles County and Ventura County. Its main population center is the city of Santa Clarita. The valley was part of the 48,612-acre (19,672. or to Newhall. "We have been dealing with the Newhall team since we acquired Stevenson Ranch Stevenson Ranch, California (in the 91381 ZIP Code) is a Los Angeles County, USA, unincorporated community west of Santa Clarita a few miles south of Six Flags Magic Mountain amusement park. The Stevenson Ranch fountain was redone in 2007. ," said Haddad, who also worked with the company in a previous affiliation with another homebuilder back in the 1980s. Lennar has built 500 of the 1,500 homes in Stevenson Ranch, an adjoining community to Valencia also developed by Newhall. And Greg McWilliams, recently brought in from Lennar to take the president, chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. post at Newhall, was hired by the Poe family, the original developers of Stevenson Ranch, to run that operation. Both Lennar and LNR also come with a strong track record in their respective specialties in the local area. In addition to Stevenson Ranch, LNR has developed one of the most successful office complexes in the San Fernando Valley in recent years, LNR Warner Center. As the future unfolds both Lennar and LNR will set their sights on the next phase of the evolution of the Santa Clarita Valley, the development of Newhall Ranch. While the first phase of development will focus on housing, a commercial component will eventually follow. "Retail will be first," said David O. Team, president of the commercial property group for LNR Property Corp. "Office park development for the Newhall Ranch portion will not be as much land use wise as apartments and retail, but there will be some industrial and some office." INNOVATORS AND INNOVATIONS Most Creative Public/Private Partnership Centre Pointe Business Park, Santa Clarita Most Successful New Development Centre Pointe Business Park, Santa Clarita Most Prestigious Lease Deal Nordstrom lease at The Oaks Mall, Thousand Oaks Thousand Oaks, residential city (1990 pop. 104,352), Ventura co., S Calif., in a farm area; inc. 1964. Avocados, citrus, vegetables, strawberries, and nursery products are grown. Largest Office Sale The Pinnacle, Burbank Transaction of the Year Sale of Newhall Land and Fanning Co. to Lennar Corp. and LNR Property Corp. Newcomer of the Year Zaya Younan, Younan Properties Most Influential Development Encino Heights Most Innovative City Planner Mike Kamino, City of Agoura Hills Best Retail Development Simi Valley Town Center Simi Valley Town Center is a shopping center located in Simi Valley, California. The mall opened in 2005 with Macy's and Robinsons-May as anchor stores. The Robinsons-May store was converted into a Macy's Men and Home Store on September 9, 2006. Largest Multi-family Sale Legacy At Studio City Largest Sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. Deal 200,000 square feet in Conejo Spectrum Most Likely to Improve the Neighborhood NoHo Commons, North Hollywood Largest Office Lease Deal Warner Bros BROS Brothers BROS Benefits and Retirement Operations Section (King County, Washington) BROS Barnes and Richmond Operatic Society (London, UK) . Lease for 430,000 square feet at Studio Plaza, Burbank Largest Industrial Sale 29011 Commerce Center Drive, Valencia Most Innovative Senior Facility The Piedmont, North Hollywood Most Creative Infill Development NoHo Lofts Most Noleworthy Architectural Design The Marvin Braude San Fernando Valley Constituent Service Center, Van Nuys Largest Retail Sale Burbank Media City Center Mall TRANSACTION OF THE YEAR Sale of Newhall Land and Farming Co. to Lennar Corp. and LNR Property Corp. Seller: Gary M. Cusumano, CEO Newhall Land and Farming Co., Valencia Buyers: Emile Haddad, Regional President Jonathan Jaffe, Regional President Lennar Corp:, Mission Viejo David O. Team, President, Commercial Property Group LNR Property Corp., Newport Beach |
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