FEDERAL WAY, WA -- Timber giant Weyerhaeuser is said to be close to inking a deal for its home building unit. The company announced in June that it would look at all available options for Weyerhauser Real Estate Co. (WRECO), including a merger, sale or spin-off or to continue to hold and operate.

The sale would allow Weyerhaeuser to focus on its core timber and paper business while moving the home building unit at a time when the housing market is rebounding.

"Given the improving fundamentals of the housing market, we believe now is a prudent time to explore strategic alternatives for this business," said Dan Fulton, Weyerhaeuser president and CEO, in a June statement. "This process will help ensure that WRECO achieves its full potential while we continue to build on Weyerhaeuser's track record of shareholder value creation."

According to Reuters, sources say Tri Pointe Homes Inc., which went public earlier this year, offered $2.7 billion for Weyerhauser's home building subsidiary, putting the value just a little lower than the $3 to 3.9 billion estimated by the Wall Street Journal in Aug.

One of the 20 largest home builders in America, WRECO sold approximately 2,300 homes last year and controls 27,000 home lots with the majority residing in California, says the Journal.

WRECO's brand portfolio includes such names as Pardee Homes, Maracay Homes, Winchester Homes, Quadrant Homes and Trendmaker Homes, covering regions from the Northeast, Southwest and West.