Harbor Custom Development, Inc. Contracts to Purchase 208 Unit Condominium Site in Sacramento, California for $5,544,000 Addressing Critical Need for First-Time Home Buyers

Rhea-AI Summary

Harbor Custom Development, Inc. (NASDAQ:HCDI) announced the acquisition of an 8-story residential project in Midtown Sacramento for $5,544,000. The project will feature 208 units, a mix of studio to two-bedroom apartments, with construction anticipated to start in Q2 2022. Units are expected to be priced under $400,000, addressing the local need for affordable housing amid rising home prices, which increased by 26% year-over-year to a median of $470,000 as of May 2021. The deal is expected to close by October 11, 2021.

Positive

• Acquisition of entitled 8-story mixed-use project in Midtown Sacramento for $5,544,000.
• Expected to address affordable housing demand with units priced under $400,000.
• Project includes 208 residential units and 3,052 sq. ft. of retail space.

Negative

• None.

Gig Harbor, Washington, July 28, 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 entered into a purchase and sale agreement for the acquisition of an entitled 8 story residential project in Midtown Sacramento for $5,544,000. The purchase is expected to close on or before October 11, 2021.

Located in Midtown Sacramento at the corner of 17^th and I Street, the future 8 story mixed use building will contain 3,052 sq. ft. of retail on the first floor with 7 floors of residential living above. The 208 units are a mixture of studio, one and two bedrooms. Harbor anticipates commencing construction in the second quarter of 2022 and units will be sold starting at under $400,000 and fill a significant need in the local marketplace. The median selling price of a home in Sacramento as of May 2021 was $470,000, which was up 26% year over year according to Redfin.

Sterling Griffin, President and CEO of Harbor, stated, “Sacramento represents an ideal location for Harbor Custom Homes® to increase our Northern California footprint and address the significant need for affordable housing in Sacramento. As home prices continue to escalate due to record low inventory levels, first-time homebuyers are often priced out of the market. We are directly addressing this fundamental gap in the marketplace by offering affordable condominiums in Midtown Sacramento.”

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 the second quarter of 202. 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

What is the acquisition announced by Harbor Custom Development on July 28, 2021?

Harbor Custom Development announced the acquisition of an 8-story residential project in Midtown Sacramento for $5,544,000.

When is the expected closing date for the Sacramento project acquisition by Harbor Custom Development?

The acquisition is expected to close on or before October 11, 2021.

How many units will the Midtown Sacramento residential project contain?

The project will contain 208 units, a mixture of studio, one, and two-bedroom apartments.

What is the anticipated construction start date for the Sacramento project by Harbor Custom Development?

Construction is anticipated to commence in the second quarter of 2022.

What will be the price range for the units in the Sacramento residential project?

Units are expected to be sold starting at under $400,000.

What was the median home price in Sacramento as of May 2021?

The median selling price of a home in Sacramento was $470,000, up 26% year over year.