Pure Cycle Corporation Announces Contracts for Sale of Lots in 2nd Development Filing at Sky Ranch

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[{"type":"text","content":"DENVER, CO / ACCESSWIRE / November 3, 2020 / Pure Cycle Corporation (NASDAQ:PCYO) announced today it has entered into agreements with a distinguished portfolio of four home builders for the sale of residential lots in its second filing at its Sky Ranch Master Planned Community.Pure Cycle has entered into agreements for the sale of residential lots in its second phase of Sky Ranch. Sky Ranch is located along the I-70 corridor in metro Denver. \"Since opening Sky Ranch, the development has catapulted into one of Denver's most affordable Master Planned Communities,\" commented Mark Harding, President of Pure Cycle. \"Our second phase will include nearly 900 detached and attached family homes, for which we have contracted for 789 homes to be built by Melody Homes (a wholly-owned subsidiary of DR Horton), KB Home, Meritage Homes and Challenger Homes,\" continued Mr. Harding. \"We are very proud of the success of our first filing, having completed all 506 finished lots nearly 18 months ahead of our contracted schedule with our home builders and reinforcing the market demand for homes at Sky Ranch,\" commented Mr. Harding.The second phase includes several new product types, including paired homes and townhomes, to diversify the community and add density. These smaller lots are priced on the same return metrics as the larger detached lots so, although they are priced lower, they will cost comparably less to deliver. The total sales price for the 789 lots contracted for is $63.4 million. The remaining 100 + lots are being held for future use, which if sold at lot prices comparable to the contracted prices would result in total sales for the second filing of $72.6 million. Our preliminary cost estimates for developing the nearly 900 lots is $65.6 million, of which we estimate more than $48.0 million will be spent on public improvements that will be eligible for reimbursement by the Sky Ranch Community Authority Board, subject to its ability to issue bond sufficient to reimburse us. Pure Cycle expects to break ground on this filing by the end of calendar 2020 and deliver model home lots in the fall/winter of 2021.The Company was able to increase its lot pricing by approximately 40%. For the first filing, our average price for a 50' lot was $72,000, compared to $102,000 in the second filing. This demonstrates Pure Cycle's success at deliver...

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