Sale of Troy-based builder part of
industry consolidation

Neumann buys Tadian as 3 national firms
take over once parochial market

By R.J. King, The Detroit News

The purchase by Neumann Homes is part of an overall consolidation of the Metro Detroit home building industry. The entry of three national builders since 1999 into Metro Detroit's once parochial market has created more competition for land and contractors. In some areas, bidding wars have broken out for talented electricians, plumbers and other tradespeople.
With more homes in Metro Detroit being built by fewer builders, housing experts say prices for single-family homes and condominiums could fall as large national players use their size and capital to buy more materials at lower costs.

"Buyers are getting greater selection and value today from the national home builders, while the independent builders will have to stay on their toes and deliver the same quality and service," said Gilbert "Buzz" Silverman, chairman of Silverman Cos., a real estate firm in Bingham Farms, which in 1999 sold its home building division to Toll Brothers Inc. in Huntington Valley, Pa.

In 2000, Centex Homes in Dallas bought Selective Homes in Farmington Hills. Metro Detroit is also home to the nation's largest home builder, Pulte Homes Inc. in Bloomfield Hills. Later this year, Pulte Homes plans to bring its Del Webb division to Metro Detroit, which specializes in building homes for active adults. Kenneth P. Neumann, president and CEO of Neumann Homes, said his company planned to expand its offering of single-family homes in Metro Detroit while enhancing Tadian's expertise in constructing town homes and condominiums. Neumann Homes, founded in 1984, offers single-family homes priced from $160,000 to more than $500,000, among housing types.

The company, in essence, is buying two Metro Detroit home builders. A year ago, Tadian Homes bought S.R. Jacobson Development Co. in Bingham Farms. Last year, Tadian said it built more than 500 homes in 30 subdivisions, up from 326 residences in 2003.

http://www.detnews.com/2005/business/0501/06/C01-51956.htm