Harbor Custom Development, Inc. Enters Preliminary Commitment with Broadmark Realty Capital for $19,129,000 Construction Loan
November 29 2021 - 8:30AM
Harbor Custom Development, Inc. (Nasdaq: HCDI, HCDIP, HCDIW, HCDIZ)
(“Harbor,” “Harbor Custom Homes®,” or the “Company”), an innovative
and market leading real estate company involved in all aspects of
the land development cycle, announced today that it has
entered into a preliminary commitment for $19,129,000 in
construction financing with Broadmark Realty Capital for 126 units
of the first phase of Harbor’s 228-unit Apartment complex located
in Belfair, Washington.
Located in the town of Belfair in North Mason
County, the 228-unit apartment project currently under construction
is conveniently situated adjacent to highway SR 3 and provides
views of the Puget Sound and the Olympic Mountains. Belfair is
approximately a 15-minute drive to downtown Bremerton, the Seattle
ferry, and the Kitsap Naval Base, a major contributor to a robust
defense economy with approximately 40,000 employees tied to the
military and defense industry in the area.
“We are pleased to enter into this
agreement with Broadmark Realty Capital. Their team has been a
valued lender for Harbor and previously financed two of our largest
projects to date,” stated Jeff Habersetzer, Chief Operating Officer
of Harbor Custom Homes. “The Belfair 228-unit apartment project had
been previously considered for condominiums catering to first time
homebuyers. However, rapidly changing market conditions over the
past 12 months that have resulted in capitalization rates dropping
to historic lows in Western Washington while accompanied with
significant increases in rental rates have shifted the value
proposition.” stated Sterling Griffin, President and Chief
Executive Officer of Harbor Custom Development, Inc. The
non-binding preliminary commitment with Broadmark Realty Capital is
subject to final underwriting and there can be no assurance as to
whether, when, or on what terms the loan will be completed.
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; Austin, Texas and Punta
Gorda, Florida. Harbor has active or recently sold-out residential
communities in Gig Harbor, Bremerton, Silverdale, Bainbridge
Island, Belfair, Allyn, Port Orchard, Lacey, Burien, Yelm, 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.
About Broadmark Realty Capital
Broadmark Realty Capital Inc. (NYSE: BRMK) is an
internally managed commercial real estate finance company that
offers short-term, first deed of trust loans secured by real estate
to fund the acquisition, renovation, rehabilitation, or development
of residential or commercial properties. Broadmark Realty Capital
manages and services its loan portfolio across a variety of market
conditions and economic cycles.
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.
Investor Relations
Hanover International
IR@harborcustomdev.com
866-744-0974
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