Harbor Custom Development Inc. has closed on a construction loan with Sound Capital Loans LLC in the amount of $20,129,000 to build an 80 unit condominium complex in Tacoma, Washington.
Located less than 10 minutes from downtown Tacoma’s urban core job market, the 80 condominiums will cater to first-time homebuyers searching for affordable options in the robust Tacoma area housing market.
Harbor said it anticipates the one- and two-bedroom units will be priced between $350,000 and $400,000 and fill a significant need in the local marketplace.
READ: Harbor Custom Development closes on $36M underwritten public offering
Tacoma has been one of the strongest housing markets in the nation. As of July 2021, Tacoma had an 18.8% year-over-year average sales price increase, raising the median sales price per home from $410,000 to $505,000.
Harbor CEO Sterling Griffin noted the Pacific Ridge project is not only located near the downtown core job market, but it is also only five minutes from the Joint Base Lewis-McChord, which supports more than 40,000 service members, including active duty, National Guard, and reserve members and approximately 14,000 full-time civilian employees.
“As home prices continue to escalate due to record low inventory levels, first-time homebuyers are often priced out of the market,” said Griffin in a statement.
“We are directly addressing this fundamental gap in the marketplace and believe offering condominiums priced under $400,000 in Tacoma creates an excellent growth opportunity for the company while providing a highly desirous product for first-time homebuyers.”
David Huey, CEO of Sound Capital Loans added: “We are pleased to enter into this agreement with Harbor Custom Development and finance the construction of the Pacific Ridge condominium project in Tacoma, Washington. We welcome the opportunity to continue being part of Harbor's growth and believe that Pacific Ridge represents a great investment for Sound Capital, a solid addition to Harbor's growing portfolio and an opportunity to address the significant need for first-time home buyer inventory around JBLM. We have had great success working with Sterling Griffin and all of Harbor's team and look forward to continuing the relationship.”
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