According to a press release issued last night, the properties' book value is about $528 million. Centex got $161 million, $294 million in an anticipated related tax refund and 5% interest in the joint venture. The seller also got the right to a greater share of distributions if certain financial targets are met.

Timothy R. Eller, chairman and CEO of Dallas-based Centex, says in the press release that the sale "is consistent with our near-term goals of reducing our land supply and generating cash. Late last year, the street had whispered that the Centex was in the midst of merger talks, but the talk died down as subprime wreaked havoc on the homebuilding industry. He says the multi-pronged deal effectively reduces future land development cash obligations and creates a more asset-light operating model.

The JV was capitalized without debt, according to the press release. Dallas-based RSF, Farallon and Greenfield will manage, develop and sell the properties. Centex has a purchase option for a limited number of the 8,500 lots, spanning 27 neighborhoods in 11 states, with the majority in California and Nevada. The deal cuts Centex's owned lot supply by 10% or less than 80,000.