In the midst of the Great Recession, vacancy in the multifamily sector hit a cyclical high of 8.0 percent. Over the next several years, the vacancy rate nearly halved, reaching 4.1 percent in early 2014. Vacancy now stands at 4.2 percent as of the end of the first quarter, where it has plateaued for 12 straight months.
What these figures don’t reveal is whether a disparity exists between the urban and suburban market segments. So we aim to dissect these headline figures in order to answer some very specific questions, in particular, how has the recovery affected multifamily properties in suburban areas versus those found in urban neighborhoods? Have both subsets of properties shared equally in the recovery and subsequent expansion? And perhaps most importantly, how will the influx of new supply influence market fundamentals in each category?
Tom Milliken and Tombo Milliken, both brokers with NAI Avant’s brokerage team, recently represented the seller in the sale ±10.77 acres on Garners Ferry Road in Columbia, SC. The site has road frontage on both Garners Ferry and Old Garners Ferry Road. All utilities are available according to Loopnet.
The property sold for $350,000 to satisfy a portion of purchaser’s 1031 tax deferred exchange investment property needs.
The Abernathy, a 41-unit condominium hotel, will be built near Clemson University’s Memorial Stadium. Tom Winkopp Realtor-Developer LLC announced construction would begin in fall on the $8 million project, with completion expected prior to the start of the 2016 football season.
Winkopp said the fully furnished condos, located along S.C. Highway 93 near the intersection of Centennial Boulevard, will provide an opportunity for “true Tiger fans to stay and tailgate one block from the rock,” referring to Howard’s Rock at the east end of the stadium.
“It’s as close to the stadium as it can be without being on campus,” Winkopp said. The hotel is named after former Clemson Mayor Larry Abernathy, who passed away in 2012.
“He and I were friends for years. He was always very helpful to me, as well as my family,” Winkopp said. “This project embodies what he was all about: Tourism and our favorite hobby, Clemson football.
State regulators have approved a new permit that would allow development of Captain Sam’s Spit. The move came a little more than five months after the state Supreme Court ruled against granting an earlier permit.
Environmental opponents characterized the move by Charlotte-based Kiawah Partners as trying to find a loophole around the court decision, and have appealed the staff decision to the Department of Health and Environmental Control board, likely setting up another protracted legal fight over the spit.
The DHEC stormwater permit was approved May 8. It provides for the construction of a sheet pile wall nearly a half-mile long that will hold up a road across the narrow neck of the spit to the high ground where 50 homes are proposed. The permit also allows preliminary work on sites for the homes. The company is calling the proposed community Cape Charles.
Proffitt Dixon Partners is preparing to build its first luxury apartment community in Greenville, S.C. The Charlotte-based firm plans to break ground this month on a 201-unit luxury multifamily development at 210 East Broad Street.
The five-story community will be built on 2.45 acres at the intersection of S. Church St. and East Broad Street. The location is a five-minute walk from Main Street in Greenville’s the Central Business District, which has the largest concentration of employment in the state.
Fountains Greenville is close to Falls Park on the Reedy, Centre Stage Theater, Peace Center for the Performing Arts, the county Art Museum and private art galleries. It also has convenient access to the Swamp Rabbit Trail, a pedestrian and bike path. The community will have the type of clubhouse, courtyards, pool and fitness facility that residents of a luxurious new property would expect. A Publix grocery store is just one block away.
The developers will follow guidelines established by the National Association of Home Builder’s (NAHB) Green Building Program. The Housing Studio is the architect, and the general contractor is Creative Builders Group.
MWV and SunCap Property Group are developing a 350,856-square-foot Class A speculative building at the North Pointe Business Campus on North Rhett Avenue in Hanahan.
The spec building is designed for distribution companies or light manufacturers. Company officials said the spec building is needed in the Charleston market where demand for more move-in ready, Class A space is high.
“By all measures, Charleston is a strong, undersupplied market,” Kenneth T. Seeger, president of MWV Community Development and Land Management, said in a news release. “Over the last year, we’ve seen record low vacancies for Class A product. Demand in both manufacturing and distribution sectors is far exceeding supply, and we feel the timing is right for this project.”
Charlotte-based SunCap Property Group completed a 254,000-square-foot distribution center for FedEx Ground in Spartanburg last year. The firm also developed a building in the North Pointe Business Campus in 2009, which is currently occupied by XPO Logistics, formerly known as New Breed Logistics.
Cayce has green-lighted a developer’s plans to build the area’s first Wal-Mart Neighborhood Grocery Store at the corner of Knox Abbott Drive and Charleston Highway.
Earlier this week, the city’s Planning Commission approved site plans submitted by Atlanta-based Bright-Meyers Development Corp. for a 40,000-square-foot neighborhood grocery.
The store, which would be about one-fourth the size of a typical 160,000-square-foot Wal-Mart Superstore, is projected to bring 95 new jobs to the area.
My appraisal firm has appraised several Wal-Mart Neighborhood Markets recently, and we have great data. Let me know if we can assist with your appraisal needs.
Michael Dodds, MAI, CCIM
Tony Bonitati, Kay Hill and Bern DuPree of NAI Earle Furman’s Multifamily Division represented the seller, Upstate Property Rentals, LLC in the sale of Springbrook Apartments, a 92-unit complex located at 104 Springbrook Court, Anderson, SC 29621. The 95% occupied multifamily property sold for $2,825,000, or $30,707/unit. According to Loopnet, the average rent is $515/month. The purchaser was Richmond Manor Apartments, Inc.
The sale of Springbrook Apartments represents the fifth property that the NAI Earle Furman Multifamily Division has sold for Upstate Property Rentals, LLC.
“We are pleased to have assisted our client in the sale of more than 300 units in the Upstate this past year, including Springbrook Apartments. This seller’s formula for stabilizing and rehabilitating apartment communities, combined with our national marketing platform, has helped our client achieve maximum returns,” said Tony Bonitati, multifamily broker at NAI Earle Furman.
For the second time, members of the Forest Acres Planning Commission did not approve a rezoning application by H&M Real Estate Holdings LLC, who are looking to build near the old Carolina Children’s Home. The developers were in front of the commission initially in February.
On Monday night they presented a new plan with hopes to move forward. However, residents sitting in on the meeting were not optimistic about the proposed mixed-use development.
“I urge you to vote against this because the community doesn’t want this and the community doesn’t need it,” says Joseph M. McCulloch, Forest Acres resident.
H&M Real Estate wants to build residential property as well as a Memory Care facility on the 26-acres they purchased from the former Carolina Children’s Home.
The commission voted 4 to 1 not to approve their rezoning plans, but H & M Real Estate’s attorney says they still plan on going before the town council. “I don’t think the reasons given for the denial of the plan are going to be sufficient to deny the plan in the last analysis,” says Robert Fuller.
The historic Columbia fire station in the Vista, which was once considered the most advanced fire station in the country when it opened in 1952, is getting a new chance at life, thanks to a new potential owner who has already launched the redevelopment of the property and a campaign to lease it.
The Columbia Central Fire Station was built between 1949 and 1951 and served as the Columbia Fire Department’s Headquarters from 1950 until 1995. In 2009, it was added to the National Register of Historic Places. Located in the heart of the Vista, the fire station is located close to the State Capitol and the University of South Carolina, and sits on a very prominent corner in an area which has seen recent additions such as Urban Outfitters, Hickory Tavern and Grill Marks.
Wheeler Development has already begun pre-construction and design work relating to the redevelopment of the property, with a goal of breathing new life into the building while maintaining its historic character. Current plans include renovation to first and second floors and adding a rooftop area. At the same time, Wheeler has partnered with Colliers International’s JP Scurry, CCIM and Scottie Smith to launch a leasing campaign to find restaurant, retail and office users to lease the property.
According to Real Data, the Columbia area’s occupancy rate remains healthy at 92.3%. The area recorded positive absorption over the past six months. Development activity increased during this time period with approximately 1,400 new starts, the majority of which are located in the Central (Downtown) submarket.
Same-store rents increased by 1.6% over the past six months bringing the average monthly rent to $893.
During the second half of 2015, demand is likely to remain at a healthy level, however, it will not be able to keep pace with the abundance of new supply expected to come on-line. Vacancy rates are forecast to approach 9% in the next twelve months.
A five-story, luxury senior-living center finally has the greenlight from town leaders to redevelop Salty Fare Landing on Hilton Head Island.
Bayshore Retirement Partners plans to build a 150,000-square-foot senior center near the Skull Creek dock, on the west side of Squire Pope Road, at the former Daufuskie Island Ferry launch.
The building will include 126 one- and two-bedroom units, a library, dining facilities, a pool, a full-service bar and lounge, a fitness room and a theater, among other amenities.
Bayshore also plans to refurbish the dock on the property and add swing trellises, a small formal garden, a seating terrace, a putting green and a fire pit along the waterfront.
The facility now has the support of all of its neighbors, thanks to a handful of design changes, town urban designer Jennifer Ray told the Design Review Board on Tuesday. Bayshore will build 10 feet farther away from The Cypress, providing more space between it and its Hilton Head Plantation neighbor, Ray said.
The average vacancy rate for apartments in the Triad is now 6.9%, according to the latest report published by Real Data. The development pipeline remains active with more than 3,000 units under construction throughout the region and another 2,000 units proposed.
Downtown Greensboro is the most active submarket, having more than 500 units currently under construction. Apartments in the Triad now rent for $741 per month on average. The Guilford-Central submarket, which includes downtown Greensboro, has the highest average rent at $995 per month.
Colliers International’s Richard Barrett, MCR, represented the buyer, BKD Capital, LLC. in the $1.1 million purchase of 429 Roper Mountain Road, in Greenville, South Carolina. The 5,256 square foot office property is located within close distance to Route 385 and downtown Greenville. BKD Capital, LLC is a private equity accounting, consulting and valuation services firm. This acquisition is their first entry into the Greenville market.
Barrett, a Brokerage Associate, specializes in flex office and industrial brokerage.