A partnership between Edmonton-based homebuilders Kimberley Homes and Mac & Mitch Homes that has Kimberley build, market and sell Mac & Mitch’s entry-level housing is a move meant to weather a post-COVID economy.

It is a change of pace for Kimberley, a custom homebuilder that prioritizes larger, boutique builds often crossing the $1-million price point. By comparison, Mac & Mitch’s offerings are typically in the $400,000 to $500,000 range.

After calibrating itself on high-end builds, Kimberley looked at "how we might take what we’re great at and apply it to other businesses," Stephen Ruggiero, president and CEO of Kimberley, said in an interview with RENX Homes.

The impetus for the partnership comes in the midst of a more complicated world, he said. Linking up with Mac & Mitch, one of the oldest homebuilders in Alberta, will help overcome such turbulence, Ruggiero said.

“Strategic partnerships whereby businesses can focus on leveraging their strengths, and then work with another business that has other strengths, seems to be the way of the future.”

Dealing with a complex economy

For the partnership, Kimberley will offer Mac & Mitch as a secondary brand for housing at a more affordable price range, Ruggiero explained. Kimberley will also provide sales and construction management services for Mac & Mitch’s new product lineup.

Those include three-bedroom townhomes at the Alces community in southeast Edmonton that start from $465,000, and three-bedroom single-family homes at the Riverstead at Keswick in southwest Edmonton starting from $545,000.

The partnership allows Kimberley to offer products “at a lower price point maintaining the quality and integrity of our brand,” Ruggiero said.

The housing industry is still recovering from the shocks of the COVID pandemic and its consequences of inflation, disrupted supply chains and elevated interest rates. Plus, the market is evolving with changing expectations for family and careers, demanding adaptation from the sector.

Ruggiero noted Alberta is experiencing strong employment growth and a rising population. Plus, Edmonton is still one of Canada’s most affordable large housing markets.

About Kimberley, Mac & Mitch

Kimberley is a notable player in the Edmonton homebuilding industry. Founded in 1989, it has been awarded the title of Edmonton’s Builder of the Year by the Canadian Home Builder’s Association seven times.

It operates primarily in Greater Edmonton with a small division in Okanagan, B.C. Its homes in the Edmonton region are priced on average between $1 million and $1.5 million, Ruggiero said. In Okanagan its homes are often pricier, ranging on average from $1.5 million to $2 million. It builds 25 to 30 homes per year in Edmonton, and a handful in Okanagan, he added.

The homebuilder offers a variety of products such as “sprawling” bungalows, luxury semi-detached duplexes and two-storey single-family builds.

Kimberley tends to cater to, among other buyer demographics, "a reasonably sophisticated buyer" looking “for that special home that is going to be their last home before they move into retirement living” or a “dream home,” Ruggiero said.

A company founded in 1942, he said Mac & Mitch’s products are geared for the entry-level market. Among its main offerings are 22- to 24-foot wide single-family homes and three-storey townhomes. The prices for its dwellings are more modest compared to Kimberley's, such as single-family homes that cost between $500,000 and $600,000. 

Unlike Kimberley’s more financially established customer base, Mac & Mitch often serves first-time buyers. But with the partnership, Ruggiero anticipates investor-buyers to take a greater interest.

“Leveraging partnerships and relationships to combine our efforts is probably one of the most effective” steps both companies could make to thrive in the moment, he said.

The first Mac & Mitch communities under Kimberley’s sales and construction team have launched, Ruggiero said.

Editor's Note: This story has been changed to reflect that the partnership has launched.