Clearly seeing the demand for new homes diminishing, the largest U.S. luxury-home builder, Toll Brothers, Inc. has formed a unit specifically for investing in distressed real estate properties.

In a statement released today, Toll Brothers says the company has created Gibraltar Capital & Asset Management LLC to “pursue a broad range of real estate acquisition and investment opportunities,”

Such opportunities may include assisting in the workout of troubled real estate, buying loan and property portfolios, and developing sites for other builders.

Toll Brothers, Inc., under the direction of the new Chief Executive Officer Douglas Yearley, Jr., is joining forced with Lennar Corp. to make money from distressed real estate and move beyond their traditional homebuilding business.

“This announcement is consistent with our thesis that Toll needs to gain exposure to other revenue streams within the sector as the housing industry remains weak for potentially another two to three years,” Jack Micenko, an analyst with Susquehanna Financial Group in New York, said in a note to investors today. “We view the move as incrementally positive.”

Last year Toll Brother began increasing its land position for the first time since 2006, which included purchasing distressed lots. The company spent $143 million on buying or optioning land during the fiscal second quarter.

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