This neighbourhood is called Sherwood, but it has little resemblance to Sherwood Forest, of the Robin Hood stories and still extant in England; on the contrary, this is a suburban neighbourhood. There are lots of roads in the neighbourhood and it could have a good many buildings. The living space is already surrounded by woodland. But you could make it a lot more wooded by adding trees in Neighbourhood View, which could be removed as you come to develop those spaces - the original trees you see in this image, which are put in in SimCity 4, cannot be removed.
It would make a lovely village community... and if you have any Expansion Packs, your Sims will not be short of places to go!
To access the outermost roads and the woodlands you will need to install the camera hack initially discovered by snappledude21 of ModTheSims2 (it's a simple text file and won't hurt your game) from MST2.
Download the terrain as an SC4 file if you want to put it in your game empty, and populate it yourself with homes and Sims. How to install it.