Pelham Place, a 57,158-square-foot retail shopping center at State 14 and Batesville Road anchored by the vacant former home of a Bloom grocery store, has been sold for $5,825,000, the second-highest sale price for a grocery-anchored retail property in Upstate South Carolina so far this year.
Officials from Avison Young, a commercial real estate firm tapped to sell the foreclosed shopping center, announced they brokered the sale from Torchlight Investors to RealOp Investments, a Greenville investment group that’s so far made no announcement of plans for the property.
The 38,003-square-foot anchor space has a long-term lease but has been unoccupied since 2012. The original Bloom store became a Food Lion in July 2011 as Food Lion discontinued its Bloom chain.
Veteran retail developer Ron Swinson wants to bring energy back to Columbia’s historic downtown Arcade. To do that he plans to restore the historic building, reopen the basement that once housed the Columbia Down Under entertainment venue, and recruit new retail and office tenants.
Swinson, a former principal of CBRE in Columbia, bought the building in July through his company Peach Properties for a little over $1 million. He expects total investment in the project to be around $2.5 million. Partners in the venture include his son, Ross Swinson, and son-in-law Brad Shelf.
“Our goal, to the extent it is economically feasible, is to restore the entire building to pretty close to what we feel and think, and the pictures show, is original,” Swinson said. “I’ve always liked the Arcade. It is sort of this hidden gem on Main Street that just seems to have gotten overlooked,” Swinson said. “We are trying to change the energy in the Arcade for everyone.”
In recent years, the Arcade, a turn of the century shopping mall, has been home to a number of local artists’ studios, a handful of retailers and offices as well as Swanson’s Deli, a local sandwich shop. While Swinson said he is willing to work with any of the current tenants to remain, he knows the mix will change. Some of the artists have already begun to move out.
A study of national and state data commissioned by The North Carolina Building Performance Association and conducted by the Energy and Environmental Assistance
Office of UNC Charlotte’s Energy Production and Infrastructure Center notes a 255 percent increase in the number of energy efficient (EE) and high performance (HP) home certifications in the Tar Heel State from 2010 to 2014, among other findings.
NCBPA founder and executive director Ryan Miller says the analysis was “the first swing of the bat” at the important task of quantifying the growing industry’s EE and HP designations as one. The ultimate goal of the project, Miller says, was to highlight and further green building momentum in the state. He also hopes the UNC Charlotte report could spur other entities to begin collecting EE and HP data together, which would create a new, less piecemeal resource for those following industry trends.
“Energy efficiency is not ‘sexy’ when compared to solar,” he says, “but our NC industry is two to three times the size — around $7 billion dollars revenue per year — of solar, offering more than just energy benefits and costing less with a very high return for those interested in the financial side.”
While speculation regarding commercial drones has been running rampant for some time in the real estate industry, the Federal Aviation Administration has finally begun to release approval for drones to take to the sky. The FAA has already approved approximately 1,300 individuals and businesses to use drones for a variety of business purposes. Those purposes include everything from inspecting utility lines to photographing real estate.
Drones are controlled with a device that looks similar to a video game controller and are equipped with small video cameras that are capable of taking photos and transmitting images to an iPad or laptop. Commercial drones offer a tremendous amount of potential for numerous industries, particularly the real estate industry.
To date, the FAA has remained hesitant in terms of providing approval for the use of commercial drones. This is in large part due to concerns regarding the potential for incidents occurring between aircraft and drones. According to the FAA, aircraft pilots have reported more than 700 drone sightings in a year. The FAA is particularly concerned about the use of unmanned aircraft by users with relatively little or no experience. For the recreational users purchasing drones from hobby shops, it is vital to become educated regarding the various and stringent restrictions, which include not operating a drone within 5 miles of an airport.
Berkadia has announced the sale of East Ridge, located at 300 Regency Street in Spartanburg, South Carolina. Director Mark Boyce of the South Carolina office and Senior Directors Andrew Mays and Paul Vetter of the Atlanta office negotiated the transaction. East Ridge sold for $7.75 million on August 28, 2015. The sales price reflects a per-unit price of $53,854, or $65 per square foot.
The property was 97 percent occupied at the time of the sale. Berkadia also provided financing for the transaction. Built in 1972, the 144-unit property features one-, two- and three-bedroom floor plans. Each unit features ceiling fans, washer and dryer connections, and balcony or patio. Community amenities include a swimming pool, laundry facility, clubhouse, barbecue and picnic area, and coffee bar.
The community is located near East Main Street and State Route 29, providing residents access to the entire Spartanburg area. East Ridge is three and a half miles from downtown Spartanburg and within a 10-mile radius of seven colleges and universities Top employers in the immediate area include Spartanburg Regional Healthcare, Mary Black Health System, Kohler Co. and Invista. The seller was a South Carolina entity. The buyer was a Pennsylvania entity. The seller upgraded the units, providing the opportunity to continue pushing rents and adding value via exterior upgrades.
A 160,000-square-foot industrial building located in Monroe, owned by Monmouth Real Estate Investment Corp., was recently sold for $9 million. The property’s buyer is Charlotte Pipe and Foundry Co., the tenant of the industrial building.
“We are pleased to announce the sale of our Monroe, North Carolina facility to our Tenant, Charlotte Pipe and Foundry. Our net sales proceeds of $8.8 million less our current carrying book value of $3.8 million will result in a realized gain of $5.0 million representing a 57 percent gain over our original cost basis and a 132 percent gain over our current depreciated GAAP basis,” said Michael P. Landy, president & CEO of Monmouth.
Greenville, South Carolina: John Gray, CCIM and Drew Stamm represented the seller in the sale of 1.2 acres of development land on Rhett St in the West End of Downtown Greenville.
Greenville, South Carolina: Scott Jones represented the seller, Milestone Ventures, LLC, in the sale of a 16,640 SF office property in Milestone Office Park to The Marlin Group, Inc.
Greer, South Carolina: Glenn Batson and Ford Borders, SIOR represented the seller, Graham STI, LLC, in the sale of a 30,000 SF industrial property at 4028 Pelham Ct.
Spartanburg, South Carolina: Andrew Babb represented the seller, Magnolia Street, LLC, in the sale of 9,850 SF of retail space at 118 & 120 Magnolia St to EJ Property, LLC.
Greenville, South Carolina: John Gray, CCIM and Drew Stamm represented Chudrow Empire, LLC, in the sale of 3,294 SF office property at 706 East Washington St.
Greenville, South Carolina: Glenn Batson represented Thomas M. Gilstrap Revocable Trust, in the sale of 15,300 SF of industrial space at 111 Pendleton Rd to Pendleton Rd Properties.
Greer, South Carolina: Ross Kester and Tyson Smoak, CCIM represented BBW Properties, LLC, in the sale of a 10,000 SF industrial property at 180 Tandem Dr to Tandem Properties, LLC.
Greenville, South Carolina: Gaston Albergotti, Jake Van Gieson, and Bill Sims represented Bad Company II, LLC, in purchasing a 2,400 SF office building and a 2,592 SF industrial building on Laurens Rd.
Simpsonville, South Carolina: John Gray, CCIM and Drew Stamm represented Pottsabilities, LLC, in the sale of a 3,050 SF retail building at 102 North Maple St in Downtown Simpsonville.
Almost 200 new hotel rooms may soon be added to Hilton Head Island.
A proposed project would add a 99-room, four-story Hilton Home2 Suites and a 96-room, four-story Marriott SpringHill Suites to the former Motel 6 site at 1 Marina Side Drive, which is mid-island, according to Mark Tate, president of North Augusta-based Tate Design Group. A proposed restaurant will also be constructed in the development.
Home2 Suites, a 2009 addition to the Hilton hotel portfolio, offers a mid-tier, extended-stay experience, and SpringHill Suites is Marriott’s upper-moderate-priced hotel. The hotels are expected to be about 56,000 square feet each, and the restaurant is proposed to be 2,000 square feet. Each hotel will have an outdoor swimming pool.
Investment group Rockford Capital Partners has purchased the recently auctioned CertusBank Building on Lady Street for $6.7 million.
The 12-story, 148,000-square-foot facility had been the home of CertusBank since spring of 2014, but the company announced in early June it was selling its deposits, some loans and branches in South Carolina, Georgia and Florida in separate transactions. The building’s previous occupant, NBSC, moved into the Main & Gervais tower in 2010.
“We’re very excited about the opportunity to invest capital into improving the building and bringing it up a notch in the view of the market,” said Douglas Motley, principal of Rockford Capital. “We very much like the Columbia market and have had investments there before. We think it’s a great place to invest, a good growing market and great business community.”
The Wilmington, Del.-based company plans to invest between $1 million and $2 million on interior improvements in order to attract more tenants to the building, which is currently just 54.4% occupied. Those aesthetic changes will take place within the first year of ownership, Motley said.
A Memphis, Tenn., developer’s plan to build a 15-story student dorm one block from the University of South Carolina is no more.
EdR has moved on from its attempts to enter the Columbia market, Josh Speed of Newmark Grubb Wilson Kibler said Tuesday. EdR’s project had been opposed by USC since it first debuted this summer, as school officials said the building would cast a shadow over the nearby historic Horseshoe. “That deal is no longer,” Speed said. “However, the Sandy’s property is now listed and available.”
Neither EdR nor USC could be reached for comment. The now-dead project was planned for the corner of Main and College streets, where the Sandy’s restaurant and Baptist Collegiate Ministries are located.
Developers received project approval from the Board of Zoning Appeals in June but the plan has been in limbo with the Design-Development Review Commission ever since. The commission postponed planned meetings in July and August in order to meet with university officials, and also with board members at a pair of subcommittee meetings to address concerns over the project.
Located in the historic Ivey Square building at 202 N. Main Street, suite 205 is available for purchase or lease. The suite has 1,325 SF of usable space and 1,525 SF of rentable space. Plenty of light is provided by three exterior windows, which were installed in 2008. The 1940’s era hardwood floors were refinished in 2008 as well. E-mail me at email@example.com for additional photos and details. This is a property that I own.
Michael B. Dodds, MAI, CCIM
I just looked through the 3Q PwC Real Estate Investor Survey, and found it interesting that cap rates declined in six of the ten national property types that PwC tracks. Two property types remained the same, and two increased. Apartment cap rates represented the highest increase of 9 basis points, while CBD Office reflected the greatest decrease of 41 basis points. Regional Malls, Power Centers and Strip Shopping Centers also registered double digit declines in cap rates. In the 2Q survey, all ten property type cap rates declined by an average of 11 basis points.
Can they keep dropping even further?
Michael B. Dodds, MAI, CCIM