Harbor Custom Development, Inc. Closes 108 Lots for $17,165,000 Expanding Austin Metro Housing Footprint

Rhea-AI Summary

Harbor Custom Development has acquired 108 developed single-family lots in the Summit Rock Golf Course community for $17.17 million. Located in Horseshoe Bay, Texas, this acquisition aligns with the company's strategy to expand its presence near Austin. Homes will range from 4-5 bedrooms and be priced from $800,000 to $2 million, with construction expected to start in Q4 2021. Harbor aims to capitalize on the area's growth, driven by urban migration from Austin and limited inventory in nearby communities.

Positive

• Acquisition of 108 lots for $17.17 million enhances market presence.
• Construction planned for upscale homes priced between $800,000 and $2 million.
• Strategic positioning in a rapidly growing area due to urban migration.

Negative

• None.

Gig Harbor, Washington, July 01, 2021 (GLOBE NEWSWIRE) -- Harbor Custom Development, Inc. (“Harbor,” “Harbor Custom Homes®,” or the “Company”), (NASDAQ:HCDI), an innovative and market leading real estate company involved in all aspects of the land development cycle, today announced that it has acquired 108 developed single family lots for $17,165,000 in the Summit Rock Golf Course community in Horseshoe Bay, Texas, located approximately 53 miles west of Austin.   

Harbor Custom Homes anticipates commencing construction of 4- and 5-bedroom homes on lots ranging from 0.25 to 1.50 acres and expected to be priced from $800,000 to $2,000,000 in the Jack Nicklaus signature, Summit Rock Golf Course community beginning in the 4th quarter of 2021.  Summit Rock has been featured as one of Golfweek’s Top 100 courses in the U.S. (https://hsbresortrealty.com/resort_development/summit-rock/). Home buyers in Summit Rock will have the opportunity for membership at the Horseshoe Bay Resort providing access to resort facilities including: three golf courses, multiple club houses, yacht club, lake facilities, and access to a private jet center with a 6,000 foot lighted runway (clubhsbresort.com). Horseshoe Bay has seen rapid growth as a result of Austin’s expanding employment base and the subsequent migration of households to the Lake and Hill Country regions.

“We have made a significant commitment to increase our Austin metro marketplace footprint and the acquisition of the 108 Summit Rock Golf Course community lots in Horseshoe Bay, combined with our current and projected inventory, provides a solid foundation for the future. Acquisition of the Horseshoe Bay area lots is a natural progression of our strategy to be a commutable distance to Austin while providing upscale housing in the scenic Lake and Hill Country regions.  Urban flight from Austin combined with decreasing inventory in the bedroom and rural communities like Horseshoe Bay offer a great opportunity for our company,” stated Sterling Griffin, President and CEO of Harbor Custom Homes.

About Harbor Custom Development, Inc.

Harbor Custom Development, Inc. is a real estate development company involved in all aspects of the land development cycle including land acquisition, entitlements, construction of project infrastructure, home building, marketing, sales, and management of various residential projects in Western Washington’s Puget Sound region; Sacramento, California; and Austin, Texas. Harbor has active or recently sold-out residential communities in Gig Harbor, Bremerton, Silverdale, Bainbridge Island, and Allyn in the state of Washington. In addition, Harbor has acquired land and will begin constructing homes in two new markets. In the Sacramento metro market, Harbor will be constructing homes in completed subdivisions in both Rocklin and Auburn, California. In the Austin metro market, Harbor has acquired developed lot inventory in Dripping Springs, Driftwood, and Horseshoe Bay, Texas. Harbor Custom Development’s business strategy is to acquire and develop land strategically, based on an understanding of population growth patterns, entitlement restrictions, infrastructure development, and geo-economic forces.  Harbor focuses on real estate within target markets with convenient access to metropolitan areas that are generally characterized by diverse economic and employment bases and increasing populations.  For more information on Harbor Custom Development, Inc., please visit www.harborcustomdev.com.

Forward-Looking Statements

Certain statements in this press release constitute “forward-looking statements” within the meaning of the federal securities laws.  Words such as “may,” “might,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements.  These forward-looking statements are based upon current estimates and assumptions.  While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release.  These forward-looking statements are subject to various risks and uncertainties, including without limitation those set forth in the Company’s filings with the Securities and Exchange Commission.  Thus, actual results could be materially different.  The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

FAQ

What is the significance of Harbor Custom Development's lot acquisition on July 1, 2021?

Harbor acquired 108 lots for $17.17 million, expanding its footprint in the growing Horseshoe Bay community.

How much did Harbor Custom Development pay for the Horseshoe Bay lots?

The company invested $17.17 million for the acquisition.

When is construction expected to begin on the new homes in Horseshoe Bay?

Construction is anticipated to commence in the fourth quarter of 2021.

What are the expected prices for homes in the Summit Rock Golf Course community?

Homes are expected to be priced from $800,000 to $2 million.

What types of homes will Harbor Custom Development build in Horseshoe Bay?

Harbor plans to construct 4- and 5-bedroom homes on lots ranging from 0.25 to 1.50 acres.

What community features will home buyers in Horseshoe Bay have access to?

Buyers will have access to the Horseshoe Bay Resort's facilities, including golf courses and a yacht club.