Archive for March, 2015

Mar
20

Investors Don’t Fear Vacancies

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vacant thumbs upAs bid-up pricing results in lower returns, especially in prime office markets, investors are turning to a new strategy, according to Transwestern’s Gary Nussbaum. That is, they’re becoming more opportunistic, buying buildings with substantial or total vacancies.

It’s not only the lower returns on stabilized assets that have motivated investors to accept more risk—and, often, pay higher prices on vacant, nearly vacant or soon to be vacant office properties, writes Nussbaum, Chicago-based managing director, investment services. They’re also finding more debt sources willing to lend on opportunistic deals.

“In order to increase their returns, some lenders have been willing to finance the acquisition of vacant buildings, offering interest-only, debt fund financing at 65% loan-to-value” as well as providing 100% of the cap-ex funding, Nussbaum writes in a special report. Interest rates, meanwhile, have been as aggressive as sub-6%. “Terms are improving because more debt sources are loaning on these non-core assets.”

READ MORE HERE

Categories : National News
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Mar
19

Chinese Investors Scooping Up Grand Strand Properties

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golf soldThe owners of Classic Golf Group’s three courses did not have their properties listed for sale last year, but they were quietly shopping them in the Myrtle Beach golf market – quite unsuccessfully.

“You had a few low, really insulting offers that really weren’t offers,” said Ed Jerdon, a partner in the courses.

Then the owners were contacted by Jane Zheng, the Keller Williams Myrtle Beach Realtor who represented the Chinese family that had purchased their former course, Black Bear Golf Club, earlier last summer. She had a new group of investors from China who might be interested in their properties.

After a short period of negotiation, Jerdon’s group sold the Founders Club of Pawleys Island, Indian Wells Golf Club and Burning Ridge Golf Club in September for about $11 million – much more than anyone else in the market was willing, and in many cases able, to pay.

“As far as selling a golf property now it depends on the purchaser, whether they can even get financing,” Jerdon said. “The Chinese, they came with cash … and they continue to buy.”

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Categories : Myrtle Beach
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Mar
17

Hotel Occupancy To Hit Record High In 2015

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up graphh2The U.S. lodging industry will continue to achieve very strong growth in rooms revenue per available room (RevPAR) during both 2015 and 2016 according to the recently released March 2015 edition of PKF Hospitality Research’s (PKF-HR) Hotel Horizons®. The report further predicts that the composition of the factors driving the RevPAR is starting to shift with record-setting occupancy yielding ground to growing average daily rates (ADR).

“In 2015, RevPAR growth will be achieved by healthy increases in both occupancy and ADR, similar to the pattern we have seen since 2011,” said R. Mark Woodworth, senior managing director of PKF-HR. “However, beginning in 2016, we are forecasting that ADR gains will be the dominant, if not sole, driver of RevPAR growth through 2019.”

For 2015, PKF-HR is forecasting a 1.9 percent increase in occupancy, combined with a 5.3 percent rise in ADR, for a 7.3 percent boost to RevPAR. In 2016, the increase in occupancy is projected to slow down to just 0.6 percent, but the pace of ADR growth is forecast to improve to 6.3 percent. The net result will be a 6.5 percent gain in RevPAR next year.

READ MORE HERE

Categories : National News
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Mar
16

Which Retailers are Closing the Most Stores?

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radio shack closingBarnes & Noble, Family Dollar, JCPenney, Office Depot and Staples are among the ten companies closing the most stores, according to 24/7 Wall St.

To identify the companies closing the most stores, 24/7 Wall St. reviewed large U.S. retailers that have announced store closings for 2015, or that are in the process of multi-year plans to reduce their physical footprints. Company earnings, store and employee counts, as well as other financial information came from the companies’ SEC filings.

Some of the 10 retailers closing the most stores can be senn HERE.

 

Categories : National News
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Mar
13

Architectural Design Fail (humor)

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design fail

Categories : Humor, Uncategorized
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Mar
13

Greer Distribution Center Sells for $36/SF

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duncan distributionBeacon Partners, a Charlotte real estate investment company, has purchased Duncan Distribution Center from Duncan Owner Corp. CBRE’s Greenville and Charlotte offices represented the seller, Duncan Owner Corp., in the $12.59 million transaction.

The 350,000-square-foot class B industrial building near Interstate 85 is 100% occupied. It is close to the S.C. Inland Port and BMW Manufacturing Co.

CBRE’s Patrick Gildea said the Upstate industrial market “has rapidly improved over the last couple of years, and investors have begun to notice. This sale generated phenomenal interest, and the competition and pricing reflected investors’ desire to own quality properties in the Upstate.”

The sellers represented themselves.

Categories : Greenville, Spartanburg
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Mar
13

More Student Housing for Clemson

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college housingWant Chinese? Head over to Asian Delight in the Clemson Shopping Center on U.S. 76. In the mood for Mexican? Monterrey is just a few steps away. Or maybe you’re hankering for a quick hot dog or two with some ‘tater chips. Skins is open for business around the corner. But not for long.

Those restaurants and 10 other businesses ranging from a scuba shop to a medical infusion center have been given orders to get out by April 18.

The 1960’s vintage shopping center, which came into being when shopping centers were the new thing and once boasted an A&P grocery store, a Garrett’s clothing store and a variety store called Mack’s, will be gone soon. In its place will rise a housing project with rooms for 494 Clemson students, two swimming pools, two sand volleyball courts, and a bocce ball court. It will also have space for a restaurant and offices for the company that will be managing the site.

Unless City Council doesn’t go along with the recommendation of the city’s Planning Commission.

READ MORE HERE

Categories : Clemson
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Mar
11

Should Background Checks Be Run on All Appraisers

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i found you!The Appraisal Institute announced March 11 that it has analyzed and compiled all state licensing and certification statutes and regulations pertaining to background checks for applicants seeking appraiser credentials and published them in the special report “State Requirements Regarding Background Checks for Real Estate Appraisers.”

AI’s analysis shows that 42 states have enacted background check statutes or regulations of some form for real estate appraisers. Only 10 states had background check requirements in place prior to 2011, which is when the Appraiser Qualifications Board (AQB) first included background checks as part of the minimum qualifications criteria. The AQB will consider additional changes to background check requirements at a public hearing March 20.

Most states require fingerprint-based formal background checks/criminal history records checks, but only a handful of states require an additional background check at each renewal period. However, many states require appraisers to submit new fingerprints and undergo new background checks when upgrading their credentials from trainee to licensed/certified, from licensed to certified residential/general or from certified residential to certified general.

Additionally, 21 states require appraisers to undergo background check/criminal history records checks before obtaining a credential by reciprocity, but only nine state require background checks for temporary practice permits.

Categories : National News
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Mar
10

10,000 Apartment Units Under Construction in Charlotte

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real data 1q 15According to the latest issue of the Charlotte Apartment Report published by Real Data, the average vacancy rate for apartments in the Charlotte metro area is now 6.7%.

Demand remains strong with more than 5,000 units absorbed over the past year. Same-unit rents continue to grow and the average rental rate is now $938 per month.

Charlotte has one of the most active development pipelines in the country, with more than 10,000 units currently under construction and another 10,000 units proposed. The majority of new development projects are class A properties located in infill locations in the Downtown,

Southeast-1 and East-1 submarkets. These submarkets include the Downtown, South End, Southpark, NoDa and Elizabeth neighborhoods. As a wave of new supply comes on-line in the next year, the average vacancy rate could approach 8.0%. Rent growth of 2% or more is expected in the next year, but growth could be hindered as new communities compete for renters.

Categories : Charlotte
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Mar
10

Apartments and Parking Garage Planned for Florence

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florence downtown aerialAn unprecedented apartment complex and parking deck project will break ground this spring following Florence City Council’s unanimous approval to start the process to convey land for the project at its March meeting on Monday.

An 85-unit apartment complex, that will face West Cheves Street and have a façade facing South Irby Street, will wrap a four-story parking deck being built by the city as part of an $8 million plan to boost parking and interconnectivity in downtown.

“We knew this needed to be a very attractive parking deck since it will be across from the Performing Arts Center and next to the museum and we plan to do that,” Wukela said. “As luck would have it we had this apartment developer who had been looking in town at doing very attractive high-end apartments and approached us and asked if we had considered wrapping the deck with this apartment complex.”

READ MORE HERE

Categories : Florence
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Mar
09

Vista Fire Station Under Contract

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vista fire stationA buyer has signed a contract to purchase the historic Vista fire station, which developers have long hoped to repurpose for retail use.

Jeff Prioreschi of Painite Capital, which first purchased the property in 2008 for $1.45 million, confirmed the arrangement. But the deal has not yet been closed, he said, as the buyer continues its due diligence. “I would say it would happen,” he said. “If not, we will pursue and develop the property. But we do feel pretty confident it will move forward.”

Prioreschi declined to name the partner, but did confirm it was from out of town. The purchaser plans to be in town next week to continue negotiations. No other details on the deal were available.

The fire station, located at the corner of Park and Senate streets, was built in the early 1950s and at the time was considered one of the most advanced fire department headquarters in the country. It closed in the mid-90s – and at one point was scheduled for demolition – before being purchased several years later by Painite Capital, then Capitol Places.

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Categories : Columbia
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Mar
09

Aloft Hotel Planned for Columbia’s Vista

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vista aloftLexington Hospitality has submitted plans for an Aloft Hotel to be built in Columbia’s Congaree Vista neighborhood.

The proposal, which calls for construction of a five-story, 108-room building, is on the agenda of the Design/Development Review Commission meeting at 4 p.m. Thursday in City Council chambers.

The Aloft, considered a boutique hotel because of its size and upscale amenities, is planned for the corner of Lady and Lincoln streets, next to the city-owned, 675-car Lincoln Street Parking Garage.

The design plan proposes that the hotel’s exterior feature three primary materials, with the bulk of it being brick. It will also feature a continuous base of cast stone along Lady Street and on the west elevation. Additional materials include aluminum panels above street level as well as cement board panels as an accent on Lincoln Street and the rear elevation.

The east portion of the parcel will showcase an outdoor patio and pedestrian alley leading to the parking garage. The alley will be the primary route from the parking garage to the Vista. Developers have already hired a landscape architect to design the space.

READ MORE HERE

Categories : Columbia
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Mar
06

Sign That You Should Have Hired a Different Contractor

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contractor humor

Categories : Humor
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Mar
05

More Apartments Planned for Charleston

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apartments-for-rentThere has been a fundamental shift in how people are choosing to live, and it’s being spearheaded by the millennial generation, according to Dan Doyle, vice president of development at The Beach Co.

On the surface, the Lowcountry appears to be experiencing a boom in construction of new apartment complexes. But Doyle sees it as more than just a temporary change in demand.

“For so long, people would strive and have this end goal of owning a home. I don’t think that’s the case as much today as it used to be,” he said. “A lot of it is related to the age demographic. The millennials, they are really driving this. There is a huge population coming into the workforce, and they’re really wanting a different type of lifestyle.”

Millennials — classified by the Pew Research Center as the generation born after 1980 — tend to not focus on the amount of space within an apartment, condominium, town house or single-family home. They typically prefer to live in communities that are within walking distance to their favorite locations.

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Mar
05

BJ’s Wholesale Club Plans Columbia Store

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BJs Columbia SCBJ’s Wholesale Club has submitted a proposal to bring its only location to South Carolina, planned for the Northeast Columbia area near the Village at Sandhill.

The membership-only warehouse club’s plan is under review by the Richland County Planning Commission, Deputy Director Geonard Price confirmed. The Westborough, Mass.-based retail company still has revisions to make to its proposal, he said.

BJ’s spokesperson Maria Fruci had no specifics on the proposal, but did say the company was “actively pursuing a location in Columbia.”

The plan calls for the company to take over the principal site at 1117 Sparkleberry Lane Extension, currently the location of a vacant, 200,000-square-foot manufacturing facility that’s situated on 14.1 acres. Other surrounding parcels also came in with the proposal, Price said.

The property is currently listed for sale by Colliers International on Showcase.com, a commercial real estate website. The asking price is $4 million. The plan is for BJ’s to tear down the building and construct a new store, Price said.

READ MORE HERE

Categories : Columbia
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