Lexington-based Connelly Builders Inc. and Connelly Development LLC plan to bring a 48-unit apartment complex to the area. Kevin Connelly, president of Connelly Builders and manager and sole member of Connelly Development, said the community will address the town’s growing senior population.
“The market study shows a tremendous need,” he said.
In total, the development will cover approximately 68,000 square feet with its primary entrance off of Northwood Road. Connelly said Intermark Management will oversee daily operations of the apartments for residents 55 and older once it’s completed.
The Connelly family of businesses previously built and developed senior living communities in Greer and Manning as well as North Carolina. Connelly said taking on a project in Lexington seemed ideal.
The state Budget and Control Board approved Wednesday a request by the University of South Carolina to be exempted from the state’s procurement process so it can negotiate a lease directly with a Fortune 100 company for space in an office building planned for the Innovista research campus.
The likely occupants would be Armonk, N.Y.-based IBM, ranked No. 20 on Fortune’s list of largest companies, and Irving, Texas-based Fluor Corp., a global provider of construction and engineering services. Fluor, ranked 110 on Fortune’s list, employs around 2,300 people in Greenville.
Assuming leasing agreements are finalized, the two companies would be housed in a five-story office building to be constructed at the corner of Blossom and Assembly streets in downtown Columbia.
In documents provided to the state board, the university said it would “negotiate directly with the company as part of the economic development package.”
In a year that saw the largest volume of medical office building sales on record, prices took a sharp dip before soaring steadily upwards while cap rates ended the year on a downward slant. Cap rates in the MOB sector have been generally trending downward since the fourth quarter of 2012, according to advisory group Hammond Hanlon Camp LLC.
The year prior to 2013 saw MOB sales volume of $5.2 billion nationwide, and HHC says it was unsurprising that last eyar saw that tally surpassed by a wide margin. “Over $6.4 billion in transaction volume was reported by Real Capital Analytics in 2013, making it the most active year in the medical office building industry’s young but growing history,” according to HHC’s quarterly update on the sector. “The annual volume represents over $1 billion in additional transaction volume compared to prior peak volumes of between $5.4 and $5.5 billion in 2006 and 2007.”
Pricing in Q4 averaged $248 per square foot, a year-over-year increase of 12% from $222 per square foot recorded in the last quarter of ‘12. HHC says the average cap rate reported for transactions over $5 million was 7.1% in Q4, “which is slightly lower than last quarter’s average cap rate of 7.3% and significantly lower than a year ago, when cap rates averaged 8.0%.” However, RCA data show that MOB cap rates still have a way to go match those commanded by office and multifamily assets.
Berkeley Capital Advisors has announced the sale of Wallace Commons, a 110,928 SF retail center located at 1311 Klumac Road in Salisbury, North Carolina. Anchor tenants include Belk, Michael’s, Ulta, and Shoe Carnival. The center has excellent regional access and tremendous visibility to I-85, which carries over 68,000 vehicles per day.
Rob Carter, Alex Quarrier and David Webb of Berkeley Capital Advisors arranged the transaction.
It was six years ago this week that I created SCREnews.com. Recently, someone asked me why I spend the time on the website. I feel that as the owner of a commercial appraisal firm, I should be very aware of what is happening across South Carolina. I have always been somewhat of a news junkie, so it just made sense to gather the news that I read everyday and post it in a central spot for other real estate professionals to access it.
Six years later, there have been 2,992 posts and almost 260,000 views of the site. I welcome your feedback on topics that you would like to see covered.
Michael Dodds, MAI, CCIM
This purchase marks Morningstar’s re-entry to the Charleston market. In 2013, Morningstar sold 43 storage centers to Public Storage, including its facilities in Charleston.
The 59,000-square-foot facility sits on nearly nine acres at 2988 N. Highway 17. Built in 2002, it is currently undergoing an expansion. Some existing parking spaces and drive-up units will be converted into a new, multistory building with an additional 30,000 square feet of space and 250 heated and cooled units.
The purchase price was not disclosed. As part of this acquisition, Morningstar also bought storage facilities in Hickory, Gastonia and Charlotte, N.C., and in Fort Mill.
About 150 people attended a public hearing Tuesday evening in Chapin to learn about a proposed road closure and redirection in the town. Several shared their opinions on the issue, and there were strong sentiments on both sides.
Residents spoke after first hearing from Arnold Roberts, who was representing commercial real estate firm HR Developers.
Roberts shared with town council and the mayor the developers’ plan to close off Clark Street for 300 feet past the intersection of Clark and Water streets heading towards Chapin Road. The proposal does allow for a redirection of Clark Street to Chapin Road.
Roberts said the street has occupied and unoccupied homes and the road serves as a “transitional artery.”
Construction is planned to begin on a new spec building in Southchase business park in Fountain Inn this spring. The building will be a 250,000 SF, best-of-class, 30’ clear, single- or multi-tenant industrial light manufacturing, distribution facility located on a +/40-acre site within the business park.
The site was acquired by a special purpose entity, TDI-Southchase, which is a partnership led by principals from TPA Group based out of Atlanta, and once it’s complete, TDI-Southchase will own the building. NAI Earle Furman is leading the development, marketing and management services for this project.
With easy access just off I-385, the new Southchase building will offer tilt-wall construction, ample parking, truck access and storage with both dock-high and grade level docks, ESFR sprinkler system, and T-5 lighting. The office space within the building will be built to suit. Just 15 to 20 minutes from downtown Greenville or GSP Airport, Southchase is home to such companies as Caterpillar, W.W. Grainger, AVX Corporation and Bosch Rexroth, among others.
With plans to break ground this spring, the estimated completion of the project is the beginning of the first quarter of 2015. Once complete, TDI-Southchase plans to either sell the building to a user or lease the building to one to three tenants.
The developer of Columbia’s historic Capital City Stadium is now looking to land a Kroger grocery store in a proposal that has some neighborhood advocates feeling “heartened” over compromises at the site.
A preliminary plan also shows apartments and a below-ground parking garage along Assembly Street, plus shops and restaurants designed to appeal to college students and others living nearby.
Importantly to community leaders who have been brought in on the discussions, the developer has agreed to pay for flood-reduction features and a trail on the property that eventually would help connect Five Points to the Congaree River near the historic Granby textile mill.
“I think we’ve got a plan now that we’re all happy with and willing to go forward with,” said Matt Sasser, the Atlanta developer with Bright-Meyers 2001 LLC.
I received a call last week from an acquaintance who knew that I am in the appraisal business. He owns a multi-tenant industrial building, and he told me a story that I thought some of you might be interested in.
He said that he re-financed the 90+% leased industrial building last summer. The regional bank that did the loan had one of the National Multi-Service Firms (brokerage, leasing, management & valuation) do the appraisal. My friend gave the appraiser the typical information, including a detailed rent roll. Within six months of closing the loan, a month-to-month tenant, and another tenant whose lease expired in November, vacated their space. Both of the vacating tenants relocated to buildings managed and leased by the same National Multi-Service Firm that did the appraisal. Coincidence? Perhaps, but my friend (who now has a 71% leased building) doesn’t think so. He is convinced that leasing agents had access to the rent roll that was provided to the appraiser in confidence. He called the appraiser a “lead generator” for the leasing division, and has made his banker aware of his concerns.
So, I ask again….do you know who has a copy of your rent roll?
If you have had a similar experience, I would like to hear about it. E-mail me or call me at 803-772-8282 ext 110.
Michael Dodds, MAI, CCIM
When there are only two student housing properties in the entire community, you can bet on strong demand. That’s the case in Charleston, SC. Investors snapped up 400 Meeting Street, a 160-bed, 41-unit student housing community there.
CMB Properties, a Charleston-based real estate investment management firm, purchased the property for $18.5 million from Davis Property Group. The asset is 100% occupied.
Not only is the four-story building is one of only two student apartment communities in the city, it is also centrally located. High-activity areas of the Charleston Peninsula surround the student housing complex.
Ryan Lang, Ryan Reid, Jaclyn Fitts, and Phil Brosseau with CBRE’s National Student Housing team, brokered the sale. According to CBRE, this transaction continues the trend of investors aggressively targeting core assets walking distance to campus.
When finished, the 12.5-acre site will have 152 housing units as well as a clubhouse with a dining hall and fitness room. The center will have a capacity of 210 people and will employ about 130 people. Construction is expected to take about 14 months with an anticipated opening in the summer of 2015.
Richard Conway, managing director for development of The Maxwell Group, said the site was chosen because of its location. Within a 5-mile radius of the site there are no similar facilities, Conway said. There are a significant number of possible tenants age 75 or older in the 5-mile radius as well as adult children ages 55 to 64.
The center, however, will serve York County and southern Mecklenburg County, he said.
Atlanta-based Pollack Shores Real Estate Group has purchased The Stratford Apartments on Park Road for $6.4 million and plans to develop a new 273-unit complex called Myers Park Place on the 6.75-acre site.
The Charlotte Business Journal reported last year that Pollack Shores was planning a redevelopment at The Stratford property, a complex built in 1970 that consists of 136 units and is located on the east side of Park Road, just north of the Selwyn Avenue intersection and across the street from the Park Selwyn Terrace retail center.
Based upon the reviews HERE, it sounds like the Stratford complex should have been demolished before now….
In Charleston County, 23,500 more hotel rooms were sold last month compared with January 2013, an increase of 9.6%, a monthly hotel occupancy report said.
Charleston County’s hotel occupancy rose 8.2% to 56.5% in January when compared with the previous year, according to Smith Travel Research data released by the College of Charleston’s Office of Tourism Analysis and the Charleston Area Convention & Visitors Bureau.
The average daily rate was $111.35 for January, up 3.3% from January 2013. The county has now had year-over-year average daily rate increases for 37 consecutive months, the report said. Charleston County’s revenue per available room was $63.11 for January, up 12.2% from the year prior.
An addition to being the tallest hotel tower in North America, the 68-story Courtyard-Residence Inn Central Park in Midtown Manhattan is also the most visible example of multi-branding, a growing trend among hotel developers to combine two and in one case, three different hotel brands owned by the same company in a single development.
The $308 million project by Marriott International and G Holdings, which combines a 378-room Courtyard hotel and 261-suite Residence Inn in a tower near Times Square and Central Park, is the second dual-branded property to open so far this year. At 750 feet, it edged above the Marriott at the Renaissance Center in Detroit as the tallest pure-play hotel on the continent.
While the first dual-branded hotel opened back in the 1980s, the concept has become increasingly more popular with developers and hotel firms over the past two years, driven by investor and traveler demand for select-service and extended-stay segments, and the cost-savings that result from sharing construction and operational expenses.