Last week, Martha Stewart Living Omnimedia, Inc. and KB Home, announced an agreement to build a new line of homes based on Martha Stewarts's own stylings and tastes.

The plans call for 650 New England-style homes in the affluent town of Cary, North Carolina, a suburb of Raleigh. Construction is beginning right now, with model homes ready for show by early next year.

A KB Home spokesman said the company has already gotten about 650 "expressions of interest" from potential buyers. KB Home is offering 12 models in townhomes and single-family dwellings, ranging from 1,300 to 4,000 square feet and with prices from $150,000 to $400,000.

Three of the home designs are based on Stewart's own homes in Maine and New York state, and includes interior options that the domestic Diva herself has picked out.

This example of co-branding is not new however. St. Lawrence Homes contracted with John Deere last year, that includes landscaping and lawn equipment from the gardening company itself. The entrance sign for the community has John Deere's logo right on it.