Down housing market dooms Minn.-based Rottlund Homes
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A major name in the Minnesota homebuilding industry is shutting down its business.
Rottlund Homes is liquidating its assets because of sluggish demand for new homes and difficulty procuring loans from banks.
"The bank syndicate we currently have no longer wanted to support the housing market, and really there are no banks that want to invest in private homebuilders," said Steve Kahn, chief financial officer for Rottlund. "They felt it best if they just sold off the remaining assets that the company has."
The company largely builds townhomes. Kahn said at the height of business, the company had more than 200 workers spread across offices in Minnesota, Florida, and Iowa. Now only 18 workers remain.
Kahn said Rottlund used to do $350 million in sales, but that's dropped off to about $50 million.
Rottlund is completing all the remaining homes under construction.
The company hopes to sell those homes, as well as any finished lots or raw land in the company's possession.
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