Harbor Custom Development Inc. (NASDAQ:HCDI) said it has entered into a preliminary commitment for $29,750,000 in construction financing with Washington Federal Bank (WaFd Bank) for the 177 unit Tanglewilde apartment complex located in Lacey, Washington.
The company said the 177-unit apartment complex is ideally located for tenants employed at Washington State's Capitol in Olympia or military personnel commuting to Joint Base Lewis-McChord. JBLM is a major US military installation with nearly 210,000 inhabitants, making it the fourth largest military installment worldwide by population.
"We are excited to continue our construction lending relationship with WaFd Bank, the largest multi-family apartment lender in Washington State and our primary bank lender," Harbor's chief financial officer Lance Brown said in a statement.
READ: Harbor Custom Development to accept Bitcoin and 12 other digital currencies as payment for its real estate
Harbor noted that the Tanglewilde apartment project had been previously considered for condominiums catering to first-time homebuyers. However, the rapidly changing market conditions over the past 12 months resulting in capitalization rates dropping to historic lows in Western Washington accompanied by significant increases in rental rates have shifted the value proposition.
“Our goal is to complete construction of the Tanglewilde apartment complex in 2023 and sell the project upon completion,” the company’s president and CEO Sterling Griffin added.
Harbor said the non-binding preliminary commitment with WaFd Bank is subject to final underwriting, and there can be no assurance as to whether, when, or on what terms the loan will be completed.
"As Harbor's core bank since 2020, it is a natural progression to finance the Tanglewilde multi-family construction project for them, especially in Thurston County - a submarket that WaFd has been active in for several decades,” said Olivia Doyle, commercial relationship manager at WaFd Bank.
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.
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