The California Public Employees' Retirement System, the largest U.S. pension fund, and property developer Newland Communities said Monday they jointly bought 21 planned residential communities in seven states for $600 million in cash.
Newland National Partners II, a partnership, will own the properties, Newland Communities spokesman Dan Peoples said. He declined to say how much each party owns. The seller was closely held Westbrook Partners.
Newland, based in La Jolla, has been a partner in CalPERS' property investment program since 1994.
More than half of the communities announced in the purchase are in markets where Newland already is developing residences, including in California. The remaining properties are in "highly desirable" metropolitan areas such as Dallas, Denver, Washington and Orlando, Fla., Newland said.
The purchase includes land for about 18,000 single-family homes, 4,000 multifamily residences, 1,800 commercial acres and three golf courses. With the acquisition, Newland expects to build more than $3.5 billion worth of homes annually.