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, 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 the town of Newhall. He moved the town south in 1879, and the original townsite was named Saugus, after Henry Newhall's hometown of Saugus, Massachusetts.