The US Bankruptcy Court gave an order approving the bidding procedures relating to the sale of certain assets of Harbor Custom Development, Inc. on May 10, 2024. The Court approved the asset purchase agreement between the debtor and NSPB LLC, the stalking horse bidder, for the sale of its certain assets for a purchase price of $96 million in cash. The debtor?s assets include Multi-Family Properties, which consists of 6 apartment buildings and a recreational building, was just completed in November 2023 and leasing is underway, 5 apartment buildings, has 1 enclosed building and poured foundations but construction is otherwise currently on hold, Bridge view apartments, The Pacific Ridge property is located in Tacoma, Washington, Meadowscape apartment complex.

To qualify as a qualified bidder, interested parties should submit their bids by June 24, 2024. The initial minimum overbid should be in the amount of $0.4 million more than the initial purchase price if the bid is for all of the multi-family properties and the initial minimum overbid for individual or less than all of the multi-family properties should be $0.20 million. If the debtor receives any qualified bids then it would hold an auction for its assets on June 26, 2024.

At the auction, the subsequent bids would be in increments of $0.1 million. The stalking horse bidder would be entitled to a break-up fee of 2.0% of the sale price paid at closing of the applicable sale in case of termination of the asset purchase agreement.