Information on the Target

Harbor Custom Development, Inc. ("Harbor") is a prominent real estate development company that operates across the full spectrum of the land development cycle. This includes activities such as land acquisition, entitlements, construction of project infrastructure, home building, marketing, sales, and project management. Harbor primarily targets markets with convenient access to metropolitan areas which exhibit a diverse economic landscape and a growing population, specifically in Western Washington, Northern California, and Austin, Texas.

Industry Overview in the Target's Specific Country

The real estate industry in the United States is characterized by its robust growth and evolution, driven by strong demand and economic recovery in various regions. Particularly post-COVID-19, there has been a notable resurgence in residential construction as households seek new living spaces that meet their changing needs.

Western Washington is experiencing a significant real estate boom, supported by a thriving tech sector and an influx of migration. The region's economic stability translates into a solid demand for housing, creating optimal conditions for real estate development ventures.

Furthermore, the Southern United States, including markets in Florida, has seen substantial investment interest due to favorable demographics, a favorable climate, and a growing economy. The combination of economic growth and population increase in these areas presents lucrative opportunities for developers.

As a leader in the development sector, Harbor is well-positioned to capitalize on these dynamics by facilitating timely and quality constructions that address the housing shortage across these high-demand regions.

The Rationale Behind the Deal

This partnership with US Capital Global is strategic for Harbor, as the new credit facilities totaling $158.4 million will enable the company to fund construction for multiple condominium projects in key locations. Access to scalable development financing is essential for Harbor to maintain its competitive edge and enhance its project pipeline across various high-potential markets.

Moreover, the ability to secure a one-stop financing solution simplifies the funding process, allowing Harbor to expedite project timelines and effectively manage capital allocation across various developments.

Information About the Investor

US Capital Global, established in 1998 and headquartered in San Francisco, is a sophisticated financial group providing a range of services including investment banking, asset management, and capital formation. With a strong presence in the lower middle-market segment, the firm specializes in offering innovative financing solutions tailored to the needs of businesses within the real estate and construction sectors.

The group's extensive experience, having provided over $1 billion in debt and equity financing over the past three years, positions it as a key partner for real estate firms looking to scale operations. Both the depth of knowledge within the finance team and the firm’s well-established networks contribute to its ability to navigate challenges within the industry efficiently.

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The deal between US Capital Global and Harbor Custom Development, Inc. is likely a strong investment opportunity given the current dynamics in the real estate market. Harbor's comprehensive involvement in various stages of property development enhances its capability to manage projects effectively and mitigate risks associated with market fluctuations.

By securing substantial financing for their condominium projects in Western Washington and Florida, Harbor is strategically positioned to benefit from the increasing demand for housing in these regions. The company’s strategic focus on diverse economic areas further strengthens its growth potential.

US Capital Global’s proficiency in providing tailored financial solutions enhances the likelihood of project success, making this collaboration an advantageous arrangement. The investor's experience in managing funds specifically within the real estate sector is an additional positive factor that strengthens the investment's profile.

Overall, the intersection of Harbor's ambitious development projects and US Capital Global's financial expertise indicates that this investment has the potential for considerable returns in the evolving real estate landscape.

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