Harbor Custom Development Inc said it has entered into a preliminary commitment for $15,715,000 in construction financing with Marquee Funding Group for the 75 unit Wyndstone apartment complex located in Yelm, Washington.
Yelm is conveniently located only 22 miles from Washington State's capital of Olympia to the south and 24 miles to Joint Base Lewis - McChord, a major US military installation with an active population of nearly 210,000 inhabitants, making it the fourth largest military installment worldwide by population.
The company said Wyndstone is ideally suited to cater to military personnel and their families. Residents will enjoy rural-style living while having easy access to shopping, retail services, and schools.
"We are pleased to enter into this agreement with Marquee Funding Group, who has been a valued and dependable lender for several of our projects over the past 12 months," said Jeff Habersetzer, chief operating officer for Harbor Custom Development in a statement.
"The Wyndstone 75-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.
"It is our objective to complete construction of Wyndstone in 2022 and sell the project upon completion. If current market conditions remain constant, we anticipate generating approximately $26 million from the sale of the project," added Sterling Griffin, president and chief executive officer of Harbor Custom Development.
The non-binding preliminary commitment with Marquee Funding Group is subject to final underwriting and there can be no assurance as to whether, when, or on what terms the loan will be completed, the company noted.
Harbor Custom Development 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.
As a land developer and builder of apartments, condominiums, single-family homes and luxury homes, 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 acquiring land with scenic views to develop and sell residential lots, new home communities, and multi-story condominium and apartment properties within a 20 to 60-minute commute of the nation's fastest-growing metro employment corridors.
The company is leading the real estate industry as the first national land developer and home builder accepting offering payment in the form of cryptocurrency for its listed land, developed lots, residential homes, condominiums, and apartments.
Contact the author at jon.hopkins@proactiveinvestors.com