Harbor Custom Development, Inc. - HCDI STOCK NEWS

Harbor Custom Development, Inc. (Nasdaq: HCDI, HCDIP, HCDIW) announced a construction loan closure of $20.13 million with Sound Capital Loans, LLC for an 80-unit condominium complex in Tacoma, WA. This project aims to provide affordable options for first-time homebuyers, with expected unit prices ranging from $350,000 to $400,000. Tacoma's housing market experienced an 18.8% year-over-year sales price increase, significantly raising the median home price from $410,000 to $505,000.

Harbor Custom Development announced the closing of its underwritten public offering of 2.4 million shares of 8.0% Series A Cumulative Convertible Preferred Stock and 13.8 million warrants, garnering approximately $36 million in gross proceeds. The funds will be allocated for land acquisition, construction, and working capital. The warrants began trading on Nasdaq under the symbol HCDIZ on October 5, 2021. ThinkEquity served as the sole book-running manager for the offering.

Harbor Custom Development, Inc. (Nasdaq: HCDI, HCDIP, HCDIW, HCDIZ) has announced an underwritten public offering of 2.4 million shares of 8.0% Series A Cumulative Convertible Preferred Stock priced at $15.00 each, accompanied by 12 million warrants. Each preferred share comes with five warrants, convertible at $4.50 per share. The offering is expected to close on October 7, 2021, with warrants trading starting October 5, 2021, under the symbol HCDIZ. ThinkEquity acts as the sole book-running manager for the offering.

Harbor Custom Development has acquired 2.34 acres in Burien, Washington, for $2.6 million to build 112 senior condominiums. The project targets the 55+ demographic, amid rising home prices in King County, where the median cost is $871,000. Senior units will be priced between $395,000 and $495,000, addressing the pressing need for affordable housing as local inventory remains low. The CEO emphasizes the strategic importance of Burien, given its proximity to major employers in the region.

Harbor Custom Development, Inc. (NASDAQ: HCDI; HCDIP; HCDIW) announced the sale of 144 entitled single-family lots in the Olympic Ridge subdivision, Belfair, WA, to Lennar Northwest, Inc. for $10,440,000. This transaction highlights Harbor's ongoing relationship with Lennar and its strategic execution in land development. Olympic Ridge offers scenic views and convenient access to Bremerton and military bases, enhancing its attractiveness for residential development. Harbor continues to expand its footprint across multiple markets, including California and Texas.

Harbor Custom Development has appointed Christopher J. Corr to its Board of Directors as of September 1, 2021. Mr. Corr is an Executive Vice President at Kidder Mathews, with over 30 years of commercial real estate experience. He has managed over two million square feet of properties and completed thousands of transactions. CEO Sterling Griffin expressed confidence in Mr. Corr's extensive background in real estate development. Harbor Custom Development operates in land acquisition and home building across key markets in Washington, California, and Texas, with plans for future projects in Florida.

Harbor Custom Development, Inc. (NASDAQ: HCDI; HCDIP; HCDIW) announced the acquisition of a 4.31-acre property in Yelm, Washington, permitted for 75 condominium units, for $3,325,000. The project is strategically located 22 miles from Olympia and 32 miles from Tacoma, catering to local housing demand with unit prices starting in the low $300,000s. The CEO highlighted the property's ready-to-build status and plans to close the deal by October, with anticipated sales beginning in Q3 2022. The company is also exploring similar projects in Washington, California, Texas, and Florida.

Harbor Custom Development has acquired an 8.44-acre site in Lacey, Washington, for $4,425,000 to develop 177 condominium units aimed at first-time homebuyers. Located near Olympia and Joint Base Lewis-McChord, the units are projected to be priced under $300,000, addressing the demand for affordable housing in a rapidly rising market. The median home price in Thurston County has surged 28.7% year-over-year to $476,341, with properties selling quickly. CEO Sterling Griffin emphasized the company's commitment to filling the housing gap amidst escalating prices and limited inventory.

Harbor Custom Development reported Q2 2021 revenues of $14,132,400, a significant 70% increase year-over-year, with net income surging 346% to $1,069,400. This marks the company's first profitable quarter since going public. CEO Sterling Griffin expressed optimism for ongoing growth due to a diversified revenue stream from multiple market segments. The company is also expanding into new markets, including California and Texas, while starting construction on oceanfront condominiums in Florida planned for 2022.