ST. LOUIS, MO/May 8, 2017 (STL.News) One of St. Louis’ largest homebuilding companies, PulteGroup, a parent company of Pulte Homes, is officially exiting the local St. Louis market, reported the St. Louis Business Journal this past week. The announcement came through a letter sent from Jeff Lear, PulteGroup’s director of St. Louis operations, initiating their intention to trade partners. The homebuilder will build out is remaining communities, which Lear anticipated will all be completed by the end of 2018.
“Following a detailed review of our competitive position, we have determined that the market dynamics are not conducive to running a return focused business, which is a top priority for the company,” said a spokeswoman from PulteGroup.
To date, Pulte has 23 employees at its Chesterfield office, which is located at 16305 Swingley Ridge Road, owned by CRP-2 Chesterfield LLC. All of the employees will be unfortunately laid off when the company makes its final exit in 1.5 years. Presently, PulteGroup has nine actively selling communities, of which half are nearly at the closeout point, stated the spokeswoman.
According to the company’s website, Pulte has grown home sale revenue nationally form $4.5 billion in 2012 to $7.45 billion in 2016. In the Midwest alone, the company is in control of more than 20,000 lots. For their Midwest homes, sales were up 22 percent from fiscal 2015 to fiscal 2016, coming in at $1.23 billion last year. These higher revenues will witnessed across all markets, reported PulteGroup’s annual company overview.
More than just Pulte, PulteGroup also includes brands such as Centex, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods. Pulte bought Dallas-based Centex Corp, parent of The Jones Co., which was once one of St. Louis’ largest homebuilders, for $1.3 billion back in 2009. After the acquisition, they renamed the entity Pulte Homes in 2010.