Harbor Custom Development, Inc. Contracts to Purchase 177 Unit Condominium Site in Lacey, Washington Expanding First-Time Homebuyer Footprint

Rhea-AI Summary

Harbor Custom Development announced a purchase agreement for 8.44 acres in Lacey, Washington, at $4,425,000, expecting closure by August 9, 2021. The site will develop 177 condominiums aimed at first-time homebuyers, priced between $260,000 and $325,000. This follows a significant rise in median home prices in Thurston County, which increased 21.6% year-over-year to $450,000. The acquisition supports Harbor's strategy to address affordable housing shortages in Western Washington, particularly as inventory remains low.

Positive

• Acquisition of 8.44 acres in Lacey for $4.425 million enhances market presence.
• Development of 177 condominiums targets first-time buyers in a competitive market.
• Units priced below $350,000 address significant local housing needs.

Negative

• None.

Gig Harbor, Washington , June 23, 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 it has entered into a purchase and sale agreement for the acquisition of approximately 8.44 acres of land in Lacey, Washington for $4,425,000. The purchase is expected to close on or before August 9, 2021.

Located less than ten minutes from Washington State’s capital of Olympia and Joint Base Lewis-McChord, the 177 condominiums are expected to cater to first-time homebuyers searching for affordable options in a competitive Thurston County market. Joint Base Lewis-McChord supports more than 40,000 service members, including active duty, National Guard, and reserve members, and approximately 14,000 full-time civilian employees. Harbor anticipates the one and two-bedroom units will be priced between $260,000 and $325,000, and fill a significant need in the local marketplace. The median selling price of a home in Thurston County, according to Redfin, as of May 2021, was $450,000, which is a 21.6% year over year increase, with an average time on the market of five days.

Sterling Griffin, President and CEO of Harbor, stated, “Lacey represents an ideal location for Harbor Custom Homes® to increase our Western Washington footprint and address the significant need for affordable housing in Thurston County. As home prices continue to escalate due to low inventory levels, first-time homebuyers are often priced out of the market. We are directly addressing this fundamental gap in the marketplace. We believe offering condominiums priced below $350,000 in Lacey creates an excellent growth opportunity for the Company while providing a highly desirable product for first-time homebuyers.” 

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 beginning in the second quarter of 2021. Those markets are the Dark Horse Golf Course community 50 miles Northeast of Sacramento and established subdivisions approximately 22 miles from Austin, located in Driftwood and Dripping Springs, 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

When is the purchase agreement for the Lacey land expected to close?

The purchase agreement for the Lacey land is expected to close on or before August 9, 2021.

What is the price range for the new condominiums in Lacey?

The new condominiums in Lacey are expected to be priced between $260,000 and $325,000.

What is the significance of the 177 condominiums being developed by Harbor Custom Development?

The 177 condominiums aim to provide affordable housing options for first-time homebuyers in Thurston County.

What are the expected market conditions for the condominiums in Thurston County?

The median selling price in Thurston County is $450,000, with a year-over-year increase of 21.6%, indicating a competitive market.

What is the stock symbol for Harbor Custom Development?

The stock symbol for Harbor Custom Development is HCDI, HCDIP, HCDIW.