After railroads, Newhall turned to real estate and ranching. He purchased a number of the former Spanish and Mexican land grants in the state, amassing a total of between Monterey and Los Angeles counties. The most significant portion was the Rancho San Francisco in northern Los Angeles County, which he purchased for $2/acre. It became known as Newhall Ranch after Newhall's death. Within this territory, Newhall granted a right-of-way to Southern Pacific through what is now Newhall Pass. He also sold the railroad part of the land, upon which the company built a town, named Newhall after him. He named the first station built on the line for his hometown of Saugus, Massachusetts. After his death, Newhall's heirs incorporated the Newhall Land and Farming Company. It oversaw the development of the communities that now make up Santa Clarita.