The value of U.S. land sold for development has fallen more than 70 percent from its peak in 2006, said John Burns, president of John Burns Real Estate Consulting Inc. in Irvine, California. Newland is the developer of six of the 25 largest masterplanned communities in the U.S. The largest is Cinco Ranch outside Houston, where 862 new homes sold last year, according to Burns.
The deal is part of a trend of Asian investors seeking U.S. real estate for development because they see the potential for growth, a housing recovery and a safe haven from economic instability, Burns said in a telephone interview.
"This is a huge deal for the industry," Burns said. "It gives the largest developer in the country a new capital partner, which will make it easier to provide more lots to the 'thirsty' homebuilders."