US: New Residential Home Sales Decline in December
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Sales of new single-family houses in December 2011 were at a seasonally adjusted annual rate of 307,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 2.2 percent (±13.2%)* below the revised November rate of 314,000 and is 7.3 percent (±16.6%)* below the December 2010 estimate of 331,000.
The median sales price of new houses sold in December 2011 was $210,300; the average sales price was $266,000. The seasonally adjusted estimate of new houses for sale at the end of December was 157,000. This represents a supply of 6.1 months at the current sales rate.
An estimated 302,000 new homes were sold in 2011. This is 6.2 percent (±3.6%) below the 2010 figure of 323,000.
PKFC: Hotel Spas Lag Industry Recovery
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The great recession appears to have been harder on hotel spa operations than on hotels themselves. According to a new study released by PKF Consulting USA (PKFC), hotel spas experienced deeper declines in revenues and profits than did hotels, as measured by RevPAR, in 2008 and 2009 and also are taking longer to recover. While the hotel industry began to improve in the second quarter of 2010, hotel spas did not show signs of a rebound until 2011. The good news is that spa revenues are expected to continue to grow and even outpace hotel RevPAR changes over the next few years as the economy improves and personal income levels begin to rise.
Because hotel spa services are often perceived as a luxury, the changes in hotel spa revenue since 2006 are not surprising. In the prosperous years of 2006 and 2007, the annual change in unit-level hotel spa revenue was comparable to the changes in RevPAR. However, concurrent with the economic recession, spa revenue declined at a greater pace than other hotel revenue sources in 2008 and 2009, and did not post a year-over-year increase in 2010 as was observed for RevPAR.
Baptist Easley Constructing $8M Medical Complex
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Baptist Easley Hospital broke ground today on a 32,000-square-foot medical complex in Powdersville at the corner of Highway 81 and McNeely Road, near the intersection of highways 153 and 81.
The $8 million facility will be anchored by MD360, an urgent-care center operated by Greenville Hospital System University Medical Center. This will be the fourth MD360 for GHS, joining locations in Greenville, Greer and Simpsonville.
The Steadman Hawkins Clinic of the Carolinas, Proaxis Therapy and specialty surgeons from GHS will also have space at the Medical Center of Powdersville. Baptist Easley is a joint venture of GHS and Palmetto Health of Columbia.
Abbeville County to Renovate Former Hospital
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Moss & Associates of Greenville and Uldrick Builders of Greenwood broke ground on two adaptive reuse-renovation projects for Abbeville County to consolidate offices and create an expanded library.
The construction costs for both projects will total approximately $3.27 million, which has been secured by Abbeville County through Recovery Zone Economic Development Bonds.
The first project will convert the former Abbeville Hospital, 901 W. Greenwood St., into a new administration office complex for the county. The second project will convert a portion of the former Winn-Dixie supermarket at 1407 Main St. into the new main branch of the Abbeville Public Library.
The projects, undergoing interior demolition since the beginning of January, are scheduled for completion by November 2012.
Columbia Office Market Strengthening
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Columbia’s CBD office sector is on the verge of becoming a landlord’s market. So says David Lockwood, senior vice president of leasing for Colliers International South Carolina Inc., who expects that in 2012 owners of downtown office buildings will offer fewer concessions than the previous 12 months as vacancies fall and rents rise.
“Tenants just aren’t going to be able to find the deals that were out there a year or 2 years ago,” said Lockwood during a 30-minute webinar hosted by Colliers on Monday that focused on office leasing and employment trends in greater Columbia.
In contrast, however, Lockwood fully anticipates rental rates in Columbia’s suburban office market will fall as landlords pull out all the stops to land tenants. “Suburban landlords will become even more aggressive,” said Lockwood. “They’ll offer more concessions, and they’ll offer more TI (tenant improvements), and that has a short-term degrading effect on the market by lowering the average rental rates.”
Beech Lake Apartments in Durham, NC Sell for $19.7M
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Palatine Capital Partners has sold the 345-unit Beech Lake Apartment complex in Durham, NC to a joint-venture between Westdale Properties and Lubert-Adler for $19.7 million.
Palatine acquired Beech Lake for $15,600,000 in September 2009 through a joint-venture with Somerset Partners.
“We substantially improved Beech Lake’s physical condition, and were able to grow rents by more than 11% during our hold period,” said Alex Hurst, founder and Managing Partner of Palatine Capital Partners in a statement. “We are actively looking to expand our apartment portfolio, with a particular focus on ground-up development in the Southeast and mid-rise properties across the country.”
PKF Hotel Horizons® Market Update: January 2012
By · CommentsMark Woodworth, President of PKF Hospitality Research, and Jack Corgel Ph.D., Senior Advisor to PKF Hospitality Research and Robert C. Baker Professor of Real Estate at Cornell University, discuss five reasons for optimism in 2012.
Augusta’s The Groves Apartments Sold
By · CommentsQR Capital, LLC has acquired The Groves Apartments, a 132-unit apartment community situated on 11.5 acres in North Augusta. Built in 1977, The Groves Apartments consists of 19 two-story residential buildings. QR Capital plans to complete approximately $600,000 in renovations in 2012. Meridian Management Group is the on-site property manager. Robert Stickel of Southeast Apartment Partners brokered the transaction and BB&T provided financing on the deal.
Charleston Area Home Sales Up 6% in 2011
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The Charleston residential real estate market closed out 2011 with a 6% increase in closings, according to data from the Charleston Trident Association of Realtors. The annual sales also showed a 3% difference in pricing from 2010. The incoming president of CTAR said the numbers are even more dramatic because they weren’t buoyed by federal tax incentives for first-time home buyers that helped prop up the market in past years.
“We anticipated the slight decline in median price, with the amount of distressed inventory in our market,” said CTAR President Herb Koger. “However, seeing sales growth at a sustainable and healthy level — that was not encouraged by tax incentives — clearly demonstrates that there are buyers who understand the value of owning a home in the Charleston area.”
The end-of-year numbers came after the market posted the strongest December sales figures since 2006, CTAR said.
Two Rock Hill Apartment Complexes Sold
By · CommentsThe 80-unit Quail Ridge, located at 2091 Dutchman Dr., and the 80-unit Country Club Arms, located at 1775 Cedar Post Ln., both in Rock Hill, have been sold to the same undisclosed buyer for $6.11 million. Juniper Investment Group sold Quail Ridge and B&B Holdings sold Country Club Arms. John Bergin, Brian Ford and Beau McIntosh of Charlotte, N.C.-based Capstone Apartment Partners represented both parties in the transaction.
Summerville’s Woodlands Inn Avoids Foreclosure
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Facing the threat of foreclosure, the acclaimed Woodlands Inn in Summerville has slipped back into the deep pockets of its previous owner. A hospitality firm owned by Virginia billionaire Sheila C. Johnson recently reclaimed its full interest in the tony getaway from a company led by Charleston attorney and Flowertown resident Johnny Linton.
Linton’s Summerville Inns of Grandeur LLC bought the high-end lodging and dining spot to much fanfare less than 18 months ago from Johnson’s Salamander Hotels and Resorts.
Most of the financial details from the September 2010 sale were not disclosed, but Linton’s family-owned business paid slightly more than $2 million for the real estate, property records show. Johnson helped finance the deal, and her firm retained a minority stake in Woodlands. Also, her resort management business continued to run the top-rated inn and dining room.
The company said in a written statement provided Wednesday that Summerville Inns of Grandeur voluntarily relinquished the deed to Woodlands on Dec. 22 to avoid letting the property fall into foreclosure.
Taylors, SC Apartment Complex Sold for $25,625/Unit
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Cunningham Villas, an 80 unit apartment complex located at 24 Cunningham Road in Taylors, SC has sold. According to Loopnet, the complex consists of one, two, and three bedroom units. The one bedroom units are appx. 700 square feet, two bedroom units are appx. 800 square feet, three bedroom units are appx. 875 square feet. Washer dryer connections are in select units. The property has recently had +/-60 of the units completely upgraded; including new paint, carpet, appliances and overhaul of the landscaping. It is reportedly 98% occupied.
All of the buildings are wood frame construction with hardy plank and brick siding and composite shingle roofs. Community amenities include on-site leasing office and on-site laundry facility. Cunningham Villas was built in 1980. The units are electric and use gas for heat and hot water. Unit amenities include fully equipped kitchens, spacious floorplans and storage units. Tenants are responsible for electric and gas. Water and sewer are master metered.
The purchase price was $2,050,000, or $25,625 per unit. Mark Boyce, with the National Multi Housing Group of Marcus & Millichap represented the buyer and seller.
70,340 SF Pineville, NC Industrial Building Sold
By · CommentsMPE USA has acquired 10424 Rodney St in Pineville, NC, a 70,340 square foot warehouse property on 4.68 acres, for $1.69 million.
Warren M. Snowdon, SIOR and David Hanna of Cushman & Wakefield | Thalhimer handled the sale negotiations on behalf of the Seller, First Industrial B&L, LLC.
Ian Bertolina of Bertolina Commercial Real Estate Services, Inc represented MPE USA, which will use the building to upfit and expand its current manufacturing and distribution facility.
Newberry Wal-Mart to House Piedmont Tech
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Construction should start in the next couple of weeks on the old Newberry Square.
The former Wal-Mart store and strip mall on Wilson Road will soon start a transformation. Last night Newberry County Council voted to award a bid of just under $25,000 to A & B Construction of Greenwood to take the ceiling tile, lights, insulation, and carpet out of the strip mall stores as the first phase of renovating that portion of the property.
The work to start gutting the stores will start in a couple of weeks but some councilmen questioned the bid which was $10,000 lower than the next lowest bid and thousands off from the top bid of $99,800. Council was assured that the bid was bonded for the work to be performed as needed.
While the work is being done, the county is starting to get bids on a new roof for the section and testing to see if the air and heat systems will work.
New Businesses for Columbia’s Main Street
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When Connie Jones Hancock was a little girl, Christmas meant a trip to Belk on Main Street in Columbia to enjoy the window displays and sit on Santa’s knee. Spring bought a pilgrimage to the Tots and Teens store for a new pair of Easter shoes. And a perfect Saturday included a trip to the Tapp’s soda fountain for an egg salad sandwich and a bowl of its famous vegetable soup.
Today, those department stores are long gone. And Main Street is on the crest of a wave of redevelopment swelled in part by the opening of Mast General Store a little over six months ago.
Hancock is part of that revitalization. She operates one of the newest and most unique businesses on Main Street — Wedding 101, in which she advises brides for free on the vendors and venues available for their special day. The vendors pay to be featured in her stunning space on the second floor of the building at 1537 Main St., near the Columbia Museum of Art.
