Michigan-Based Homebuilder Pulte Group Moving to Atlanta

In news first reported by The Wall Street Journal and later confirmed by CBS Detroit, one of the nation’s biggest homebuilders, PulteGroup Inc. PHM, is moving from Bloomfield Hills, Michigan to Atlanta, Georgia.

James Zeumer, a PulteGroup representative, confirmed to WWJ Newsradio 950 that the board of directors had approved the move and that they are now seeking office space in Atlanta.

“This was a very, very hard decision for us,” Zeumer said. “Bill Pulte started this company in Michigan in 1950, so you’re looking at more than six decades of history. We certainly appreciate that, but what really has to be noted here is that over a third of our business now, of our closings in 2012 took place in the southeast.”

According to Reuters, the move will not take place until 2014 and the company's homebuilding operations will remain in Michigan.

Richard J. Dugas, Jr., PulteGroup Chairman, President and CEO said, "We have historically managed our growth from Michigan, but the Company has reached a point where we must pursue a strategy that better fits with the long-term growth trends for our company and industry. This relocation will bring us closer to our customers and a larger portion of our investment portfolio."

"By announcing the decision a year in advance, we can work more closely with each employee and help facilitate an easier transition and more seamless relocation to a new facility," Executive Vice President, Human Resources , James Ellinghausen, said to Reuters. Ellinghausen said it was too early to know how many of the 326 eligible individuals employed by PulteGroup in Michigan would relocate.

In responding to the news, Oakland County Executive L. Brooks Patterson told Benzinga, "We are disappointed that Pulte has chosen to leave Michigan. However, we respect any company's right to determine its future. Oakland County continues to attract thousands of sustainable, high-paying jobs in the knowledge-based economy through our Emerging Sectors, Medical Main Street, and Automation Alley initiatives. Oakland County is helping to drive Michigan's economy."

Roger Penske, whose Penske Automotive Group PAG is also based in Bloomfield Hills, said, “The goal for all of us as business leaders in this part of Michigan is we want to see people moving in. I’m sure there’s a good reason if they made that decision [to move]… but to me, we’ve got great opportunity here.”

Grandson of the company’s founder, Bill Pulte, offered no direct comment but did say on Twitter Thursday night, according to CBS Detroit: “I was born in Florida and chose to move to Michigan. Our Pulte family has been and will be committed to MI & Detroit.”

Shares of PulteGroup were down slightly about $0.10 at $22.01 Friday afternoon.

As of this writing, Jim Probasco had no position in any mentioned securities.