Author Archive
Self-Storage: Best Investment Over 10 Years
Posted by: | Comments
The best real estate investment in the past decade was found at the opposite end from trophy resorts and office towers, in 5-foot-by-5-foot lockers.
Self-storage companies, which rent units to small businesses and consumers under names such as “Uncle Bob’s Self Storage (SSS),” produced the best risk-adjusted return among 10 U.S. real estate investment trust indexes in the past decade, according to the BLOOMBERG RISKLESS RETURN RANKING. They had the highest total return and the third-lowest volatility, for a risk-adjusted gain of 10.6 percent. Owners of offices, hotels and warehouses fared among the worst, hurt by price swings.
Seniors Housing Occupancy Continues Modest Recovery
Posted by: | CommentsThe seniors housing occupancy rate continued its gradual recovery in the first quarter of 2012, reports the National Investment Center for the Seniors Housing & Care Industry (NIC). However, construction activity and year-over-year rent growth slowed, according to NIC MAP, a data analysis service.
Overall, the average occupancy rate for seniors housing properties in the first quarter of 2012 was 88.4 percent, an increase of 0.2 percentage points from the prior quarter and a 0.8 percentage point increase from a year earlier. The seniors housing average occupancy rate has risen consistently during the past eight consecutive quarters and is currently 1.3 percentage points above its cyclical low of 87.1 percent in the first quarter of 2010.
Foreclosures Up in Beaufort County to Start 2012
Posted by: | Comments
Foreclosures statewide increased sharply in the first quarter of 2012, a trend especially apparent — but not yet worrisome, according to local real estate experts — in Beaufort County.
The number of lender-owned real estate properties rose nearly 40 percent statewide in the first quarter of 2012 over the final three months of 2011, according to California-based real estate research firm RealtyTrac.
Edward Dukes, broker-in-charge of Lowcountry Real Estate in Beaufort, agreed with some analysts who attributed the spike in part to the lingering robo-signing scandal.
Beginning in late 2010, banks had to halt thousands of foreclosure proceedings nationwide when it became known that related filings were being signed without being adequately reviewed, creating a backlog from which Dukes thinks the county has yet to fully emerge.
A Little Background on Columbia’s Whole Foods Deal
Posted by: | Comments
The first time Lyle Darnall met with Whole Foods executives, it was 2004. They all piled into an SUV and drove through Forest Acres.
When they arrived at a site across from Richland Mall, they sat silent for several minutes before Whole Foods co-owner A.C. Gallo said it was time to go. “He was trying to get the feel of the site, the feng shui,” said Darnall, managing director with Edens, a Columbia-based developer and manager of East Coast shopping centers, speaking last week to a group of Leadership Columbia alumni.
That deal fell through, but Darnall and other executives kept the company’s ear for the next eight years until conditions were right – from a site with the proper feng shui (a system of positioning buildings for the best energy flow) to proving that Columbia was a town with a “foodie network.”
Greenville, NC Student Housing Sold
Posted by: | Comments
The 503-bed University Suites, located at 2200 University Suites Dr. in Greenville, has sold for $15.5 million. The property serves Eastern Carolina University.
Alan Meetze and David Hudgins of Drucker & Falk’s Newport News, Va., office represented University Suites at ECU LLC, the seller, in the transaction. The buyer was 2200 University Suites. Realco Capital Partners acquired the property earlier this year. It is managed by Campus Apartments.
US: New Home Sales Up 7.5% over March 2011
Posted by: | Comments
Sales of new single-family houses in March 2012 were at a seasonally adjusted annual rate of 328,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 7.1 percent (±20.7%)* below the revised February rate of 353,000, but is 7.5 percent (±19.6%)* above the March 2011 estimate of 305,000.
The median sales price of new houses sold in March 2012 was $234,500; the average sales price was $291,200. The seasonally adjusted estimate of new houses for sale at the end of March was 144,000. This represents a supply of 5.3 months at the current sales rate.
Spartanburg’s Wildewood Apartments Sold
Posted by: | Comments
The 369-unit Wildewood Apartments, located at 350 Bryant Rd. in Spartanburg, has sold for $6.4 million. Tony Bonitati, John Gray and Kay Hill of Greenville, S.C.-based NAI Earle Furman represented the seller in the transaction. Bowman Investments, the buyer, plans to invest $1 million to renovate the property and rebrand it as Woodland Park Apartments.
Vesta Equity, LLC, a Sarasota based private lender, funded an 18-month, $5.2 million bridge loan for the acquisition and renovation. The property was bank-owned and purchased in an REO sale. The property was 80% occupied at the time of the sale. The loan included a $1 million hold back reserve for renovations. Vesta worked diligently with the Sponsors to close the loan only ten days after receiving the request. David Borge of CBRE secured the loan.
This loan marks Vesta’s first transaction in South Carolina. Vesta is actively seeking additional senior and mezzanine loan opportunities in the Southeastern United States and Texas.
Reis: Greenville Office Market Among Five Winners
Posted by: | CommentsWhen Reis releases its Q1 2012 statistics, Greenville’s office market will show up among the five biggest winners based on markets with the largest basis point change in vacancy rate from Q4 2011 to Q1 2012.
Greenville’s Residential Recovery Continues
Posted by: | Comments
Michael Dey views the 63 percent year-to-date increase in Greenville County residential building permits as Economics 101 — supply and demand.
“There’s an insufficient amount of existing homes on the market to meet current demand so new homes are being put on the market to meet that new demand,” said Dey, executive vice president of the Home Builders Association of Greenville. “As demand continues to go up, which we expect it will, the amount of activity will increase as well.”
Building permits for the Upstate as a whole rose 23.1 percent from first quarter 2011 to the same period this year, and 26.3 percent from fourth quarter 2011 through the first three months this year, according a quarterly trend report from Knoxville-based The Market Edge.
New Apartments Coming to Greenville CBD
Posted by: | Comments
A new residential apartment complex coming to downtown Greenville could help alleviate some of the demand for downtown rental options.
Tom Croft, the Croft Co. Inc. owner, plans to build between 98 and 110 units at 121 Rhett St., which sits next to the Riverplace mixed-use development on Camperdown Way, developed by Hughes Investments. The complex will have a pool, exercise facility, rooftop terrace, club room and the potential for a few retail spaces along Rhett Street. The residential component is not contingent on retail.
The apartment complex will mainly have one- and two-bedroom options, with some three-bedrooms mixed into the plans.
Mount Pleasant Upholds Big Box Restrictions
Posted by: | Comments
The town Planning Commission upheld limits on “big box” retailers Wednesday night after it heard from more than a dozen people who supported keeping the restrictions.
The residents said they feared scrapping the prohibition would pave the way for large retailers on The Gregg Tract across from Town Centre and possibly in other locations. “It’s changing the character of Mount Pleasant. We don’t want any more big box stores,” said Amy Hardee.
David Meek noted that the town has two Walmarts, a Kmart and a Lowe’s. “It is a protection for us. We don’t need more development in our backyard,” said Ted Summerford.
Multi-Family Transactions Down from 4Q 2011
Posted by: | CommentsPreliminary first quarter 2012 multifamily property sales data indicate that transaction velocity decelerated from the rapid pace observed during the fourth quarter of 2011.
After recording more than 360 U.S. apartment sales valued at $10 million or more during the fourth quarter of 2011, total sales closed during January, February and March probably declined by one-third or more. The average price of a unit traded in the first quarter of 2012, increased, however, rising 5 percent from $122,400 in the fourth quarter of 2011 to $128,600 during the first quarter of 2012.
Greenwood to Get New Retail Center
Posted by: | Comments
Greenville-based Carolina Holdings Inc. began construction on The Shops at Westwood located on the Highway 72 Bypass in Greenwood.
The developer acquired the former Hollywood Video on the Highway 72 Bypass and demolished it. The new building will include an Aspen Dental office and a Mattress Firm retail store.
The design architect for the project is Greenville-based McMillan Pazdan Smith. The project is being constructed by Caldwell Constructors, with construction financing being provided by GrandSouth Bank. The civil engineering services are being provided by Hall Engineering.
Charleston Federal Building to Become Hotel
Posted by: | Comments
The Mendel Rivers Federal Building — a large vacant office building near Marion Square — is set to get new life as a luxury hotel. The downtown building, located at 334 Meeting St., will become the Hotel Dewberry, the first hotel under the Dewberry Capital brand.
The building will be renovated into a 155-room luxury hotel by McMillan Pazdan Smith in association with Reggie Gibson of Gibson Guess Architects and By Others Ltd. Dewberry Capital bought the property in 2008 from the General Services Administration for $15 million.
The hotel will feature a rooftop spa, pool and fitness center. It will be LEED-certified and is expected to open by fall 2013. The building’s marble and brick exterior is expected to remain largely unchanged. The building was commissioned by former President John F. Kennedy in the 1960s.
Spartanburg Apartment Complexes Sold
Posted by: | Comments
A joint venture between New York City-based The Praedium Group and Chartwell Holdings has acquired the 496-unit Haven at Oak Forest and the 204-unit Haven at North Town in Spartanburg, for $36.9 million. Haven at Oak Forest is located at 200 Health Ln., and Haven at North Town is located at 458 N. Church St. Amenities at both properties include a swimming pool, clubhouse with full Wi-Fi access, a fitness center, playground, nature walking trails, community car wash and grilling areas. Blake Okland of ARA’s Charlotte, N.C., office represented the seller in the transaction.
