SG Blocks, Inc. (NASDAQ:SGBX) ("SG Blocks" or the "Company"), a leading designer, innovator and fabricator of container-based structures, announced today that SGB Development Corp., the real property development arm and wholly owned subsidiary of SG Blocks, has closed on its initial project site in Lago Vista, Texas. The 50+ acre parcel sits on Lake Travis on the Colorado River in central Texas and is planned to provide upscale condominiums, a health club, marina and other amenities, making Lago Vista an eco-chic alternative in the housing market.
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Proposed site of SGB Development Corp. Lago Vista project. (Photo: Business Wire)
SGB Development Corp. was founded with the mission to maximize the delivery of cost effective housing across all sectors of the housing market.
"We couldn't be happier with the Lago Vista site and project. We believe it is an ideal setting for residential living and we expect a warm reception," Paul Galvin, Chairman and CEO of SG Blocks noted. "Austin is a booming market, and our green mission aligns perfectly with what many potential home owners are looking for in the area. We are proud to say that our homes will be made in the USA, sustainably, by humans."
The project will yield one- and two-bedroom units manufactured at the Company's factory in Durant, Oklahoma. SG Blocks' approach to development is based on speed to market, environmental sensitivity and high-quality products due to manufacturing in optimal indoor conditions, with a dedicated, full-time workforce. SG Echo anticipates revenue in the $20 million range from Lago Vista.
In general, modular projects reduce the time to completion by approximately 50 percent. This is in part due to the fact that while the site and civil work is being executed, the fabrication of the units are being done in parallel.
SGB Development Corp. is currently finishing plans for review and approval, with groundbreaking currently slated for Q2 2022. SG Blocks expects to benefit from the manufacturing revenue on the front side, as well as from proceeds from the asset sales upon completion. Projected sales from the sale of the condo units are approximately in the $80 -$90 million range, of which a significant portion will be shared with the real estate development firm SGB Development Corp. plans to engage to develop the project.
SGB Development Corp. was represented by Ruta, Soulios, and Stratis LLP as well as Bowman Consulting.