Harbor Custom Development Inc said 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 its 228-unit apartment complex located in Belfair in Washington’s North Mason County.
The company said the project, currently under construction, is conveniently situated adjacent to highway SR 3 and provides views of the Puget Sound and the Olympic Mountains.
It noted that 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.
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"We are pleased to enter into this agreement with Broadmark Realty Capital,” Harbor chief operating officer Jeff Habersetzer said in a statement.
“Their team has been a valued lender for Harbor and previously financed two of our largest projects to date.”
Harbor said 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,” president and CEO Sterling Griffin said.
Harbor said 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.
Harbor 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.
The company’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.
Contact the author at stephen.gunnion@proactiveinvestors.com