Safe and Green Development Corporation Completes Site Work & Receives Permits to Begin Construction in South Texas

Rhea-AI Summary

Safe and Green Development (NASDAQ: SGD) has completed site work and obtained necessary permits for the first phase of its Sugar Phase I project in South Texas. The company has finished resurfacing lots and received elevation certificates, allowing vertical construction to begin. SG Devco expects to deliver the first phase of homes by Q1 2025 and aims to sell all 35 homes to Trio, acting as Program Administrator for Choctaw American Insurance, Inc., within that quarter.

CEO David Villarreal expressed enthusiasm about reaching this milestone, highlighting it as the beginning of the company's development efforts in South Texas. The Sugar Phase I project is a important component of SG Devco's strategy to provide high-quality housing in growing communities, addressing the increasing demand in the region.

Positive

• Completion of site work and obtaining necessary permits for Sugar Phase I project
• Expected delivery of first phase homes by Q1 2025
• Planned sale of all 35 homes to Trio within Q1 2025
• Progress in development strategy for growing communities in South Texas

Negative

• None.

Insights

Real Estate Development Expert

The completion of site work and receipt of construction permits for the Sugar Phase I project marks a important milestone for Safe and Green Development This progress indicates the company is on track with its development timeline, which is vital for investor confidence. The planned delivery of the first phase by Q1 2025 provides a clear target for revenue recognition.

The pre-arrangement to sell all homes to Trio, acting for Choctaw American Insurance, Inc., significantly reduces market risk. This guaranteed buyer arrangement is particularly valuable in the current uncertain real estate market. However, investors should note that this also potentially caps upside if market conditions improve dramatically.

With 35 homes in the first phase, this project, while noteworthy, is relatively small-scale. Its impact on SGD's overall financial performance will depend on the company's total development pipeline and the profit margins for this specific project, which are not disclosed in the announcement.

Market Research Analyst

The South Texas real estate market has been experiencing steady growth, making SGD's expansion into this region a strategically sound move. The company's focus on "growing communities" aligns with broader demographic trends of population shifts to the Sun Belt states.

The guaranteed sale agreement with Trio mitigates short-term market risks but may limit SGD's ability to capitalize on potential price appreciation. Investors should consider how this balance between security and upside potential fits into SGD's overall business model and risk profile.

While the announcement is positive, it's important to contextualize this project within SGD's broader portfolio and growth strategy. More information on the company's project pipeline, land bank and future development plans would be necessary to fully assess the long-term impact on SGD's market position and financial outlook.

MIAMI, Oct. 15, 2024 /PRNewswire/ -- Safe and Green Development Corporation (NASDAQ: SGD) ("SG Devco" or the "Company"), a leading real estate development company, announces that all site work has been completed for the first phase of its Sugar Phase I project in South Texas.

Since the first announcement of the project, the Company has been resurfacing the lots to receive the necessary elevation certificates to move forward with vertical construction. The Company has now completed the work and received all necessary permits to be able to do so.

The Company expects to deliver the first phase of homes by Q1 2025 and to be able to sell all homes to Trio, as Program Administrator for Choctaw American Insurance, Inc., within that quarter. The Sugar Phase I project, which includes a total of 35 homes, is a key part of SG Devco's strategy to provide high-quality housing in growing communities.

"We are thrilled to have reached this significant milestone for our Sugar Phase I project," said David Villarreal, CEO of SG Devco. "This marks the beginning of our development efforts in South Texas, and we look forward to delivering homes that meet the growing demand in the region."

About Safe and Green Development Corporation (SG Devco)

Safe and Green Development Corporation is a real estate development company. Formed in 2021, it focuses on the development of sites using purpose-built, prefabricated modules built from both wood and steel. The thesis of development is to build strong, innovative and green, single or multifamily projects across all income and asset classes. Additionally, a majority owned subsidiary of SG DevCo, Majestic World Holdings LLC, is a prop-tech company that has created a real estate AI Platform. The Platform aims to decentralize the real estate marketplace, creating an all-in-one solution that brings banks, institutions, home builders, clients, agents, vendors, gig workers, and insurers into a seamlessly integrated and structured AI-driven environment. MyVONIA Innovations LLC, a wholly own subsidiary, is the owner of MyVONIA which is an AI-powered personal assistant designed to help simplify daily tasks and improve productivity for individuals and businesses. MyVONIA aims to assist with managing both personal and professional tasks.

Safe Harbor Statement

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. All statements other than statements of historical fact are or may be deemed to be forward-looking statements. In some cases forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates" and similar expressions and include statements regarding delivering the first phase of homes and selling all homes to Trio by Q1 2025, providing high-quality housing in growing communities, delivering homes that meet the growing demand in South Texas and creating an all-in-one solution that brings banks, institutions, home builders, clients, agents, vendors, gig workers, and insurers into a seamlessly integrated and structured AI-driven environment.

These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, and expected future developments, as well as other factors we believe are appropriate in the circumstances. Important factors that could cause actual results to differ materially from current expectations include, among others, the Company's ability to complete the Sugar Phase I project in South Texas as planned, the Company's ability to sell all homes to Trio by Q1 2025, the Company's ability to deliver homes that meet the growing demand in South Texas, the Company's ability to create an all-in-one solution that brings banks, institutions, home builders, clients, agents, vendors, gig workers, and insurers into a seamlessly integrated and structured AI-driven environment, the Company's ability to obtain the capital necessary to fund its activities, the Company's ability to monetize its real estate holdings, and other factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and its subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.

For investor relations and media inquiries, please contact:
Barwicki Investor Relations
Andrew@Barwicki.com
516-662-9461

View original content:https://www.prnewswire.com/news-releases/safe-and-green-development-corporation-completes-site-work--receives-permits-to-begin-construction-in-south-texas-302276183.html

SOURCE Safe and Green Development Corporation

FAQ

What milestone has Safe and Green Development (SGD) achieved for its Sugar Phase I project?

SGD has completed all site work and received necessary permits to begin vertical construction for the first phase of its Sugar Phase I project in South Texas.

When does Safe and Green Development (SGD) expect to deliver the first phase of homes for the Sugar Phase I project?

SGD expects to deliver the first phase of homes by Q1 2025.

How many homes are included in Safe and Green Development 's (SGD) Sugar Phase I project?

The Sugar Phase I project includes a total of 35 homes.

Who is the intended buyer for the homes in Safe and Green Development 's (SGD) Sugar Phase I project?

SGD plans to sell all homes to Trio, acting as Program Administrator for Choctaw American Insurance, Inc.