Lennar Buys 72 Lots in Otsego Development
More than two years after Lennar Corporation bought lots in Martin Farms-a troubled development in Otsego-the company has purchased an additional 72 lots, according to the Star Tribune.
The Minneapolis newspaper reported that Lennar recently purchased the lots for an undisclosed sum and is considering buying more in the development in the next couple of years.
According to the Star Tribune, Lennar purchased 27 lots outright and has signed an agreement to close on the other 45 at a later time.
“That way, they can market a whole neighborhood without having to carry the costs of buying all of the lots,” Laurie Karnes, owner of Maplewood-based land brokerage firm Land for Sale, told the Star Tribune.
Martin Farms was originally developed by Insignia Development but struggled when the housing market crashed and was eventually bough back by its lender-Wells Fargo & Company-for $9 million in 2008, according to the Star Tribune.
In late 2009, Lennar reportedly bought 54 lots in the Martin Farms development.
According to the listing on CB Richard Ellis' Web site, there are still additional lots available, and Bill Burgess, president of Lennar's Minnesota division, told the Star Tribune that the company would consider buying that additional land in the next couple of years.
Click here to read more in the Star Tribune about the Martin Farms development.