Lead developer of major Whatcom County housing projects files for bankruptcy

Rachel Showalter
·2 min read

A real estate development company with a stake in major development projects throughout Whatcom County has filed for bankruptcy.

Harbor Custom Development, Inc. (HCDI) announced Monday, Dec. 11 that the company voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the Western District of Washington at Tacoma “to pursue an orderly wind down or restructuring of its business,” according to a company news release.

The company will continue with normal business operations while it prepares a “Plan of Reorganization.”

“The Chapter 11 cases will provide the company with time and breathing room needed to market and sell its real estate assets and right-size operations for the benefit of the company’s creditors and stakeholders,” Interim CEO of HCDI Jeff Habersetzer said in the release.

HCDI was the lead developer for a 992-unit housing and commercial development proposed in Blaine known as Grandis Pond. The company backed out of the project in September.

The development has been in the planning stages for about 20 years. Engineering approval for the first phase of the development was expected to be issued by the end of this year, with construction expected to begin in 2024.

Grandis Pond is a planned community on 438 acres along H Street Road on the Washington-Canada border. The entire project is expected to have 872 single-family lots, 120 multi-family units and about 10 acres of commercial space.

A map shows the location of the proposed Grandis Pond Development in Blaine, Wash. The project is expected to receive engineering approval for the first phase of the development by the end of 2023.
A map shows the location of the proposed Grandis Pond Development in Blaine, Wash. The project is expected to receive engineering approval for the first phase of the development by the end of 2023.

The first phase includes:

▪ 119 acres of development.

▪ 387 single-family lots each averaging about 6,000 square feet.

▪ 23 acres of usable open space.

▪ 22 acres of wildlife corridors.

HCDI is also leading the development of another 149-acre property in Blaine called Horizon. Once complete, the development is expected to include 140 single-family luxury homes and 10 multifamily complexes totaling 400 units.

The development site is just south of Semiahmoo Parkway, east of Selder Road and north of Birch Point Road. The gated community is expected to feature a mix of one-, two- and three-story homes ranging from 2,200 square feet to more than 4,200 square feet. The company previously told The Bellingham Herald it planned to reach completion of the full development in the next several years.

HCDI did not immediately respond to a request for comment from The Herald but the company is expected to continue to market and sell finished lots and homes and to operate multifamily projects as it works toward stabilization, according to Monday’s news release.

The company’s total assets are estimated to be worth $100 million to $500 million.

Court filings related to the bankruptcy process and resources for HCDI’s creditors and equity interest holders can be found online.