Builders minimize financial risks by forging an unusual relationship

A national real estate company is forging an unusual relationship with several Twin Cities-area builders. Meridian Land Co., a subsidiary of United Properties, is partnering with Twin Cities-based Brandl Anderson Homes to build and market more than a dozen houses in the Village Creek subdivision in Lakeville. This is the third such deal in Minnesota, but the company has worked with builders elsewhere in the country and is on the hunt for more. What's the benefit for builders? Meridian brings land, lots and capital for development to the table, while Brandl and the other builder/partners are responsible only for construction and marketing functions. In this case, Meridian will retain ­title to the lots and houses once completed and until sold, reducing the financial risks to the builder. Meridian's Glenn McCabe said that in some cases where the company owns the lots they allow the builder to pay for them over time at a prearranged price. Meridian has carved a unique post-­recession niche for itself by focusing on the acquisition and development of stalled projects. The company has worked in Wisconsin, Arizona, Florida and Virginia. The Lakeville project is called Village Creek 4th Addition and will have 16 single-family homes starting in the low $300,000s.