Harbor Custom Development, Inc. filed a motion in the US Bankruptcy Court for the sale of certain assets on April 18, 2024. The debtor seeks the Court?s approval for the sale of its certain assets to NSPB LLC, the stalking horse bidder, 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 at least $2.5 million more than the initial purchase price. The debtor has scheduled an auction 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 and expense reimbursement of $0.01 million in case of termination of the asset purchase agreement. The sale hearing is scheduled for May 9, 2024.