KB Home Inc. on Tuesday said that it intends to develop a master-planned community on a 330-acre former ranch it has acquired in an upscale section of suburban Austin, Texas.

The Los Angeles homebuilder said that it plans to build 1,019 customizable homes on the Mason Ranch property in Leander. Terms of the land deal were not disclosed.

KB Home expects to begin development early next year, with model homes opening by late in the year. The deal is among several the company hopes to make this year as the residential market improves, taking advantage of good deals for raw land and entitled developments stalled during the recession.

Chief Executive Jeffrey Mezger said during a June conference call that the company was "aggressively reinvesting in new land assets and communities” and expected to spend about $350 million on land and development in the second half.

Shares closed up 24 cents, or 2 percent, to $12.26 on the New York Stock Exchange.

For reprint and licensing requests for this article, CLICK HERE.