A portfolio of residential real estate in the Twin Cities suburbs, once part of the now-defunct Rottlund Homes empire, has largely been sold off to local investors.
Terms of the sale were not disclosed.
However, when the 10 developments were initially listed, the asking price was more than $6 million. The properties included more than 500 lots throughout the suburbs.
Once the state’s biggest and most venerable homebuilders, Rottlund went out of business in 2011, a victim of the housing market’s collapse.
The Bloomington office of CBRE Group Inc., led by veteran broker Richard Palmiter, was chosen to market the properties by a court-appointed receiver working on behalf of Rottlund’s creditors.
CBRE said Tuesday it was able to sell nine of the 10 developments by the end of 2012, and the remaining asset’s closing will close by the end of 2013. “The final sales prices exceeded the pricing set by the receiver,” CBRE said in a statement.
Palmiter said the portfolio was sold as individual entities, and the buyers are local builders and developers.
Longtime Twin Cities builder and developer Hans Hagen said there’s been “a very strong uptick in the market to the point now that we’re doing spec homes.”
Hagen, CEO of Fridley-based Hans Hagen Homes, was not a buyer of the former Rottlund sites, but said low interest rates and attractive price points for new homes have spurred the market for residential real estate.
The 10 developments were: Wildflower Meadows in Otsego; the Reserve in Plymouth; Victor Gardens in Hugo; the Lakes and Club West in Blaine; Arbor Crest in Inver Grove Heights; Ridgewood in Savage; Inspiration in Bayport; High Grove in Maple Grove, and Harmony in Rosemount.