Harbor Custom Development, Inc. Contracts to Purchase 80 Unit Condominium Site in Tacoma, Washington Expanding First-Time Home Buyer Footprint

Rhea-AI Summary

Harbor Custom Development, Inc. (NASDAQ:HCDI) has entered a purchase agreement for 1.85 acres of land in Tacoma, Washington, for $2 million, with closing expected by May 22, 2021. This site will support the construction of 80 condominiums aimed at first-time homebuyers, priced between $300,000 and $400,000. Tacoma's housing market is among the fastest selling in the U.S., providing a strong opportunity for the company to address the growing demand for affordable housing.

Positive

• Acquisition of 1.85 acres in Tacoma for $2 million, allowing for future growth.
• Plans to build 80 affordable condominiums cater to strong local demand.
• Targeting first-time homebuyers with unit prices between $300,000 and $400,000.

Negative

• None.

Gig Harbor, Washington , April 05, 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 approximately 1.85 acres of land in Tacoma, Washington for $2,000,000. The purchase is expected to close on or before May 22, 2021.

Located less than ten minutes to downtown Tacoma’s urban core job market, the 80 condominiums will cater to first-time home buyers searching for affordable options in the robust Tacoma area housing market. Harbor anticipates the 1 and 2 Bedroom units will be priced between $300,000 and $400,000 and fill a significant need in the local marketplace. Tacoma has been one of the strongest housing markets in the nation over the past two years and, in January 2021, as reported by Redfin, was the fastest selling market in the country. (Redfin puts Tacoma No. 1 for fastest selling housing market | Tacoma News Tribune (thenewstribune.com).)

Sterling Griffin, President and CEO of Harbor, stated, “Tacoma represents an ideal location for Harbor Custom Homes® to increase our Western Washington footprint and address the significant need for affordable housing in Tacoma. 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 and believe offering condominiums priced below $400,000 in Tacoma creates an excellent growth opportunity for the Company while providing a highly desirous 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 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 did Harbor Custom Development announce on April 5, 2021?

Harbor Custom Development announced the acquisition of 1.85 acres of land in Tacoma, Washington, for $2 million.

How many condominiums will Harbor Custom Development build in Tacoma?

Harbor Custom Development plans to build 80 condominiums in Tacoma.

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

The condominiums are expected to be priced between $300,000 and $400,000.

What is the significance of the Tacoma housing market for Harbor Custom Development?

Tacoma has been one of the fastest selling housing markets in the U.S., presenting a strong opportunity for affordable housing.

When is the expected closing date for the land purchase in Tacoma?

The land purchase is expected to close on or before May 22, 2021.