Safe and Green Development Corporation Secures Construction Loan for Model Home

Rhea-AI Summary

Safe and Green Development (NASDAQ: SGD) has secured financing terms for the vertical construction of a model home in South Texas. This development marks a significant step for the company, showcasing its design and construction capabilities to potential buyers and partners. The model home will serve as a foundation for SG Devco's expansion in South Texas, where it plans to launch multiple residential communities.

The construction will be financed through a construction loan, subject to certain terms and conditions, including the payoff of an existing note. SG Devco expects to close on the loan within 30 days. CEO David Villarreal expressed excitement about this milestone, emphasizing the company's commitment to innovation and sustainability in real estate.

Positive

• Secured financing terms for model home construction
• Potential expansion into multiple residential communities in South Texas
• Showcasing design and construction capabilities to potential buyers and partners

Negative

• Loan closing subject to terms and conditions, including payoff of existing note
• 30-day timeline for loan closing may pose potential delays

MIAMI, Oct. 8, 2024 /PRNewswire/ -- Safe and Green Development Corporation (NASDAQ: SGD) ("SG Devco" or the "Company"), a leading real estate development firm focused on eco-friendly and sustainable projects, is pleased to announce that it has successfully secured financing terms for the vertical construction of a model home in South Texas.

The model home will provide potential buyers and partners with a tangible example of the Company's design and construction capabilities, helping to streamline the decision-making process for future projects. Additionally, this development sets the stage for the expansion of SG Devco's footprint in the South Texas area, where the Company anticipates launching multiple residential communities in the near future.

The financing arrangement will be facilitated through a construction loan that will enable SG Devco to commence the vertical construction of the model home. However, the closing of the construction loan is subject to several terms and conditions, including the payoff of the existing St. Mary's note. The Company is actively working towards fulfilling these terms and conditions and expects to close on the loan within 30 days.

"We are thrilled to have secured financing terms for the vertical construction of our model home in South Texas," said David Villarreal, CEO at SG Devco. "This represents a milestone for our company as we continue our efforts to drive innovation and sustainability in the real estate sector. We are excited about our future growth and the opportunity to bring high-quality housing options to the South Texas region"

About Safe and Green Development Corporation (SG Devco)

Safe and Green Development Corporation is a real estate development company. Formed in 2021, it focuses on the development of sites using purpose-built, prefabricated modules built from both wood and steel. The thesis of development is to build strong, innovative and green, single or multifamily projects across all income and asset classes. Additionally, a majority owned subsidiary of SG DevCo, Majestic World Holdings LLC, is a prop-tech company that has created a real estate AI Platform. The Platform aims to decentralize the real estate marketplace, creating an all-in-one solution that brings banks, institutions, home builders, clients, agents, vendors, gig workers, and insurers into a seamlessly integrated and structured AI-driven environment. MyVONIA Innovations LLC, a wholly owned subsidiary, is the owner of MyVONIA which is an AI-powered personal assistant designed to help simplify daily tasks and improve productivity for individuals and businesses. MyVONIA aims to assist with managing both personal and professional tasks.

Safe Harbor Statement

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions, and include statements regarding the Company's plans to construct a model home in South Texas providing potential buyers and partners with a tangible example of  the Company's design and construction capabilities, streamlining the decision-making process for future projects, expanding the Company's footprint in the South Texas area, launching multiple residential communities in the near future, facilitating the financing arrangement through a construction loan, fulfilling the terms and conditions to the loan and closing on the loan within 30 days,  driving innovation and sustainability in the real estate sector, bringing high-quality housing options to the South Texas region and creating an all-in-one solution that brings banks, institutions, home builders, clients, agents, vendors, gig workers, and insurers into a seamlessly integrated and structured AI-driven environment.

These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, and expected future developments, as well as other factors we believe are appropriate in the circumstances. Important factors that could cause actual results to differ materially from current expectations include, among others, the Company's ability to commence construction and complete the model home in South Texas as planned, the Company's ability to expand its footprint in the South Texas area and launch multiple residential communities in the near future, the Company's ability to fulfill the terms and conditions to the loan and close within 30 days, the Company's ability to drive innovation and sustainability in the real estate sector, the Company's ability to create an all-in-one solution that brings banks, institutions, home builders, clients, agents, vendors, gig workers, and insurers into a seamlessly integrated and structured AI-driven environment, the Company's ability to obtain the capital necessary to fund its activities, the Company's ability to monetize its real estate holdings, and other factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and its subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.

For investor relations and media inquiries, please contact:
Barwicki Investor Relations
Andrew@Barwicki.com
516-662-9461

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SOURCE Safe and Green Development Corporation

FAQ

What is the purpose of Safe and Green Development 's model home in South Texas?

The model home will showcase SG Devco's (SGD) design and construction capabilities to potential buyers and partners, facilitating decision-making for future projects and supporting the company's expansion in South Texas.

How is Safe and Green Development (SGD) financing the construction of its model home?

SG Devco has secured financing terms through a construction loan for the vertical construction of the model home in South Texas.

What conditions must be met for Safe and Green Development (SGD) to close on the construction loan?

The closing of the construction loan is subject to several terms and conditions, including the payoff of the existing St. Mary's note. SG Devco expects to close on the loan within 30 days.

What are Safe and Green Development 's (SGD) future plans for South Texas?

SG Devco anticipates launching multiple residential communities in the South Texas area in the near future, using the model home as a foundation for expansion.