Harbor Custom Development, Inc. Purchases 177 Unit Condominium Site in Lacey, Washington for $4,425,000

Rhea-AI Summary

Harbor Custom Development has acquired an 8.44-acre site in Lacey, Washington, for $4,425,000 to develop 177 condominium units aimed at first-time homebuyers. Located near Olympia and Joint Base Lewis-McChord, the units are projected to be priced under $300,000, addressing the demand for affordable housing in a rapidly rising market. The median home price in Thurston County has surged 28.7% year-over-year to $476,341, with properties selling quickly. CEO Sterling Griffin emphasized the company's commitment to filling the housing gap amidst escalating prices and limited inventory.

Positive

• Acquisition of 8.44 acres for $4,425,000 indicates strategic growth.
• Development of 177 condominiums meets high demand for affordable housing.
• Anticipated pricing under $300,000 addresses market gap for first-time buyers.

Negative

• None.

Gig Harbor, Washington , Aug. 18, 2021 (GLOBE NEWSWIRE) -- Harbor Custom Development, Inc. (“Harbor,” “Harbor Custom Homes®,” or the “Company”), (NASDAQ: HCDI; HCDIP; HCDIW), an innovative and market leading real estate company involved in all aspects of the land development cycle, today announced it has purchased an 8.44 acre property entitled for the construction of 177 condominium units in Lacey, Washington for $4,425,000.

Located less than ten minutes to the Washington State Capitol of Olympia and Joint Base Lewis-McChord, the 177 condominiums will cater to first-time home buyers searching for affordable options in a very tight 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 starting at under $300,000 and fill a significant need in the local marketplace. The median selling price of a home in Thurston County according to Redfin as of June 2021 was $476,341, which was up 28.7% year over year 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 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 $300,000 in Lacey 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, 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 has 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 significance of Harbor's recent acquisition of land in Lacey, Washington?

Harbor's acquisition allows the development of 177 condominiums aimed at filling the need for affordable housing in a competitive market.

How many condominium units will be constructed by Harbor in Lacey?

Harbor plans to construct 177 condominium units in Lacey, Washington.

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

The one- and two-bedroom units are anticipated to start at under $300,000.

How does the median home price in Thurston County compare to Harbor's new condominiums?

The median selling price in Thurston County is $476,341, significantly higher than Harbor's targeted price for the new units.

What market need is Harbor addressing with their new development in Lacey?

Harbor aims to address the shortage of affordable housing options for first-time homebuyers in a rising market.