The bankrupt Harbor Custom Development will sell off its remaining properties in Washington, California, Florida and Texas.
The Tacoma-based multifamily developer, which filed for Chapter 11 bankruptcy in December, announced a plan to wind down operations and liquidate its assets through a court-approved process, the Puget Sound Business Journal reported.
It’s not likely the company liquidation will result in any “material return” to its equity shareholders. Harbor said it plans to submit a liquidation plan to the court this month.
“The company explored the possibilities of restructuring its business to continue as a going concern, but unfortunately, has found no viable plan to do so,” Harbor Custom Development said in a statement.
The firm said it intends to complete “an orderly wind-down of its business, including sales of its remaining assets in Washington, California, Florida and Texas.”
Harbor, whose stock price fell from $110 per share to 57 cents in three years, filed for Chapter 11 bankruptcy protection at the close of a year marked by layoffs, poor stock performance and leadership changes.
The bankruptcy filing, submitted in the Western District of Washington at Tacoma, included affiliated businesses from Pacific Ridge CM and HCDI FL Condo to Beacon Studio Farms.
Interim CEO Jeff Habersetzer attributed the company’s troubles to diversification into apartments amid a changing real estate market, coupled with challenges posed by high interest rates and inflation.
The company, with 100 to 200 creditors according to the petition, reported $224 million in assets and debts totaling $172.5 million as of the end of September.
Its multifamily portfolio includes four projects: Belfair View Apartments in Belfair, Bridgeview Trail Apartments in Port Orchard, Meadowscape Apartments in Olympia and Pacific Ridge Apartments in Tacoma, according to the Business Journal.
The company said its holdings in Blaine, near Semiahmoo, also “will be put on the market shortly.” Its website shows a planned condominium development called Horizon.
An auction has yet to be scheduled, and stalking horse offers are being considered, said Harbor, which has retained New York City-based Keen-Summit Capital Partners to manage the sell-off.
— Dana Bartholomew
