The LNR/Lennar venture has completed due diligence related to the venture's acquisition of The Newhall Land and Farming Co. of Valencia, CA. In addition, the venture has deposited $25 million into escrow relating to the transaction.

The transaction still is subject to approval from Newhall Land's unitholders, approval by the California Public Utilities Commission to change control of Newhall's wholly owned subsidiary, Valencia Water Co., expiration or termination of the Hart-Scott-Rodino Act waiting period and routine closing conditions.

"Lennar and LNR representatives did a thorough review of our company and its holdings, and we are pleased with their announcement to move forward with the transaction," Gary Cusumano, president and CEO of The Newhall Land and Farming Co., says in a statement. "We will now focus our efforts on presenting the transaction to our unitholders for approval later this year and obtaining the necessary approval from the CPUC."