Harbor Custom Development, Inc. - HCDI STOCK NEWS

Harbor Custom Development has contracted to acquire 106 developed single-family lots for $16.9 million in the Summit Rock Golf Course community, Horseshoe Bay, Texas. The company plans to build 4- and 5-bedroom homes priced from $800,000 to $1.2 million, starting in Q3 2021. This acquisition aims to strengthen its presence in the Austin metro market, leveraging the ongoing urban flight and rising demand for upscale housing. The growth in Horseshoe Bay aligns with the company's strategy to provide accessible housing near Austin.

Harbor Custom Development, Inc. (NASDAQ:HCDI) announced a construction contract with Lennar Northwest, Inc. to develop 99 lots in phase 7 of Soundview Estates, Bremerton, Washington. This contract, valued at $16,830,000, follows a prior sale agreement for the lots disclosed on February 18, 2021. Harbor has also completed infrastructure improvements on 240 lots, with 215 purchased by Lennar for home construction. The subdivision now consists of 339 lots with scenic views and is conveniently located near key amenities. Harbor expects to deliver the lots to Lennar in 2022.

Harbor Custom Development, Inc. (NASDAQ:HCDI) has established a new banking relationship with WaFd Bank, securing $6,383,000 in construction financing for 13 homes at Soundview Estates in Bremerton, Washington. CEO Sterling Griffin emphasized that this collaboration will enable Harbor to expand its market presence in Seattle, Sacramento, and Austin, with potential future growth. WaFd Bank’s extensive footprint in the Western U.S. is seen as a strategic advantage. Harbor is engaged in various aspects of real estate development across multiple states.

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.

Harbor Custom Development has successfully completed phase 6 sales of 50 residential lots at Soundview Estates in Bremerton, Washington, to Lennar Northwest for $7 million. This transaction marks the completion of infrastructure improvements for 240 lots, with 215 lots sold to Lennar for single-family homes. Harbor anticipates closing an additional 99 lots in phase 7 within the second quarter of 2021. The development will ultimately comprise 339 lots, offering scenic views and proximity to downtown Bremerton.

Harbor Custom Development, Inc. (NASDAQ: HCDI) reported 2020 gross revenues of $50.4 million but faced a net loss of $3.5 million. The company has raised its 2021 revenue guidance from $70 million to $80 million, anticipating a 59% increase from the previous year. CEO Sterling Griffin highlighted transitions due to high development costs and debt. Funds from the IPO helped reduce debt and improve infrastructure to capitalize on the U.S. housing shortage, particularly in Seattle, Sacramento, and Austin.

Harbor Custom Development has successfully acquired 22 developed lots in Rocklin, California, for $3,944,050. This acquisition aligns with the company's strategy to secure real estate near urban job centers, supporting demand driven by urban flight from the Bay Area. The upcoming homes, ranging from 2,300 to 3,000 square feet, will be priced between $800,000 and $1,000,000 and construction is set to begin in Q2 2021. The site is close to outdoor recreational areas, enhancing its appeal.

Harbor Custom Development has secured $7,683,000 in financing from Sound Capital to acquire 30 lots in Horseshoe Bay, Texas, and for construction on nine lots in Dripping Springs, Texas. The lots in Horseshoe Bay are expected to support home construction starting in Q3 2021, with pricing between $600,000 and $1,000,000. The Dripping Springs project will commence in Q2 2021, with estimated home prices ranging from $900,000 to $1,200,000. This expansion marks a significant growth opportunity for Harbor in the Austin metro market.

Harbor Custom Development has announced a contract to acquire 55 undeveloped lots in Loomis, California, for $6,850,000. This community will feature single-family homes sized between 2,500 and 3,000 square feet, with prices projected from $1,000,000 to $1,300,000. The acquisition aims to expand Harbor's footprint in the Sacramento Metro Area, responding to urban flight trends from the Bay Area. Development activities are expected to commence in Q1 2022, with construction of homes anticipated in Q4 2022.