Harbor Custom Development, Inc. Enters Senior Housing Market - Closes on 112 Unit 55+ Condominium Site in Burien, Washington for $2,600,000

Rhea-AI Summary

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.

Positive

• Acquisition of 2.34 acres for $2.6 million to build 112 senior condos.
• Targeting the 55+ demographic fills a significant market need.
• Pricing between $395,000 and $495,000 meets demand for affordable senior housing.
• Strategically located near major employers in King County.

Negative

• None.

Gig Harbor, Washington , Sept. 09, 2021 (GLOBE NEWSWIRE) -- Harbor Custom Development, Inc. (NASDAQ: HCDI, HCDIP, HCDIW) (“Harbor,” “Harbor Custom Homes®,” or the “Company”), an innovative and market leading real estate company involved in all aspects of the land development cycle, today announced that it has closed  the acquisition of approximately 2.34 acres of land for the construction of 112 senior condominium units in Burien, Washington for $2,600,000. In the heart of Western Washington’s Puget Sound Region, Burien, located in King County, is less than a 15 minute commute to downtown Seattle and 30 minutes to Tacoma. The Mira Condominiums will cater to the 55+ age demographic and will be ideally suited for retiring employees from King County which contains the corporate headquarters of Amazon, Microsoft, Costco, Starbucks, Nordstrom’s, Weyerhaeuser, PACCAR, Expedia, and Alaska Airlines, among others. Boeing no longer maintains its corporate headquarters in the Seattle region but does have approximately 58,000 employees in Washington State, the majority of whom are located in the Puget Sound region. Harbor anticipates the Studio, 1 and 2 Bedroom senior condominium units will be priced between $395,000 and $495,000 and fill a significant need in the local marketplace. Home prices climbed 25% year over year and the median selling price of a home in King County according to S&P CoreLogic Case-Shiller Home Price Index released August 31, 2021, was $871,000.

Sterling Griffin, President and CEO of Harbor, stated, “Burien represents an ideal location for Harbor Custom Homes® to enter the 55+ Senior Housing Market and address the significant need for affordable senior housing in King County. As home prices continue to escalate due to record low inventory levels, seniors on fixed incomes are pressured to sell their homes as taxes and the costs of maintaining their property escalate at unprecedented levels.” “We are directly addressing a fundamental need in the marketplace and believe offering 55+ senior condominiums priced below $400,000 in Burien serves an important community need while providing an excellent growth opportunity for the Company,” stated Jeff Habersetzer, Chief Operating Officer at Harbor.

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, Belfair, Allyn, Port Orchard, and Blaine in the state of Washington. In addition, Harbor has acquired land and will begin constructing homes in three 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. The Company recently acquired property in Punta Gorda, Florida, and plans to begin construction of oceanfront condominiums there in 2022. 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 latest acquisition by Harbor Custom Development?

Harbor Custom Development acquired 2.34 acres in Burien, Washington, for $2.6 million.

How many senior condominium units is Harbor Custom Development planning to build?

Harbor plans to build 112 senior condominium units.

What is the price range for the new senior condos in Burien?

The senior condominium units will be priced between $395,000 and $495,000.

Why is the Burien location significant for Harbor Custom Development?

Burien is strategically located near major employers in King County, ideal for the 55+ demographic.

What is the market trend for home prices in King County?

Home prices in King County increased by 25% year over year, with a median price of $871,000.