Harbor Custom Development Inc. (NASDAQ:HCDI) has announced the closing of a senior secured revolving credit facility with BankUnited (NYSE:BKU) Inc which will provide the company with a $25 million capacity over a two-year term.
The Gig Harbor, Washington-based real estate development company said the funds will provide the company with “additional resources to support general working capital requirements” and corporate purposes, including real estate equity investments.
"The closing of this $25 million facility provides the company with additional liquidity and financial flexibility to pursue further growth initiatives," said Harbor Custom CEO Sterling Griffin in a statement. "We remain committed to strengthening our current market position and expect that the completion of this facility will assist in the acceleration of our growth and market reach."
Meanwhile, Ben Stacks, who is the executive vice president and head of Commercial Real Estate at BankUnited (NYSE:BKU), noted that the bank is “excited” to offer Harbor a “capital solution” to “fuel its growth plans”.
Piper Sandler served as Harbor's exclusive financial advisor. The facility has a Secured Overnight Financing Rate (SOFR) plus 4.75%, said the company.
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 payment in the form of cryptocurrency for its listed land, developed lots, residential homes, condominiums, and apartments.
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