Benzinga | Jul 28, 2021 09:33AM EDT

Harbor Custom Development Contracts To Purchase 208 Unit Condominium Site In Sacramento, California For $5M

Harbor Custom Development, Inc. ("Harbor," "Harbor Custom Homes(r)," or the "Company"), (NASDAQ:HCDI), an innovative and market leading real estate company involved in all aspects of the land development cycle, today announced that it has entered into a purchase and sale agreement for the acquisition of an entitled 8 story residential project in Midtown Sacramento for $5,544,000. The purchase is expected to close on or before October 11, 2021.

Located in Midtown Sacramento at the corner of 17th and I Street, the future 8 story mixed use building will contain 3,052 sq. ft. of retail on the first floor with 7 floors of residential living above. The 208 units are a mixture of studio, one and two bedrooms. Harbor anticipates commencing construction in the second quarter of 2022 and units will be sold starting at under $400,000 and fill a significant need in the local marketplace. The median selling price of a home in Sacramento as of May 2021 was $470,000, which was up 26% year over year according to Redfin.

Sterling Griffin, President and CEO of Harbor, stated, "Sacramento represents an ideal location for Harbor Custom Homes(r) to increase our Northern California footprint and address the significant need for affordable housing in Sacramento. As home prices continue to escalate due to record low inventory levels, first-time homebuyers are often priced out of the market. We are directly addressing this fundamental gap in the marketplace by offering affordable condominiums in Midtown Sacramento."