Archive for Greenville
Annual growth in effective rents for South Carolina’s Greenville/Upstate apartment market came in at a modest 1.6% in 3Q 2013. That’s quite a shift in general momentum for a place that had been one of the country’s top achievers among secondary metros, with annual rent growth previously running at an average of more than 4% since the middle of 2010.
When that sort of performance result registers you always wonder whether it’s a big-picture inflection point in the pattern or just a one-off odd number. From MPF Research’s perspective, the latter, one-off scenario appears more likely, given that nothing really seems to have changed in the factors that are Greenville’s key apartment market drivers.
Occupancy in the metro remains in good shape. A rate between 94% and 95% has been normal here for the past couple of years, and the 3Q reading came in toward the high end of that range at 94.8%. A lot of the Upstate area’s vacancies are found in the outlying Spartanburg County market, where occupancy – now at 92.1% — has tended to hover 200 to 300 basis points below the metro norm for quite a while.
Greenville developer Paul C. “Bo” Aughtry III this morning released a rendering of the building that will house the hotel, if things go as planned.
The development site at the intersection of the Reedy River and River Street is being used as a surface parking lot now.
The hotel, scheduled to open in 2016, will have restaurants on the roof and in the lobby, as well as banquet space and board rooms overlooking the river across from the Peace Center, according to Aughtry’s company, Windsor/Aughtry Co.
Menin Development Inc. (MDI), Palm Beach, FL has announced the newest additions to the tenant line up at Magnolia Park, its $250 million, 800,000 square foot mixed use, retail and entertainment project located at the intersection of I-85, I-385 and Woodruff Road in Greenville, South Carolina.
Magnolia Park, formerly the Greenville Mall, was purchased by a Menin affiliate and the former Mall was demolished and is in final stages of being re-conceived. Upon its completion by year end 2014, Magnolia Park will feature an unsurpassed mix of retailers and restaurants, the majority of which will be making their South Carolina or even Southeast US debuts on site.
Joining open retailers and restaurants Costco, Regal Cinemas, Toys R Us/Babies R US, Rooms to Go, Cheddars, Firebirds and Jared’s will be Cabela’s, Nordstrom Rack, Golfsmith, Yard House, Tucanos Brazilian Grill, and Destination XL. With these new additions, Magnolia Park is now 90% committed and will be fully opened and occupied prior to year end 2014. CLICK HERE for a more detailed list of retailers, restaurants and office users coming to Magnolia Park.
NAI Earle Furman has released its Third Quarter 2013 Market Reports. Reports include market snapshots in the office, retail and industrial sectors of commercial real estate. The reports summarize the quarterly market statistics – including vacancy, construction, asking rents and absorption – across commercial property types and submarkets in the Upstate.
The Aspen Companies, the Teaneck, N.J.-based real estate concern which focuses on investing in affordable rental properties throughout the country, has recently purchased a garden-style apartment property in Greenville, SC.
The acquisition was part of a large portfolio-style deal completed by The Aspen Companies which will significantly increase its presence in key urban markets in the southeastern United States.
The Aspen Companies purchased the 100 home Fleetwood Manor apartment complex located at 25 Fleetwood Drive for $3 million. The two-story garden apartment community consists of one-, two-, and three-bedroom homes in one of the fastest growing metropolitan areas in the country.
Aspen will renovate the property including roofing, interior renovations and the addition of new amenities, including a playground.
With the new inland port being built in Greer, SC, this might be of interest to you.
Inland ports that serve the Midwest and other interior sections of the country should continue to experience strong growth in the future, according to Curtis Magleby, senior managing director and regional head, U.S. Capital Markets West, for Cushman & Wakefield; Michael Berry, president of Hillwood Properties; and Stephen Crosby, president of CSX Real Property, all of whom spoke at NAIOP’s I.con: The Industrial Conference in Los Angeles in June.
What is an inland port? According to a 2011 Jones Lang LaSalle report, Perspectives on the Global Supply Chain, it is “a hub designed to move international shipments more efficiently and effectively from maritime ports inland for distribution throughout the U.S. heartland.”
Not every big intermodal hub away from a major seaport is an inland port. Inland ports feature most or all of the following characteristics: regional multimodal transportation infrastructure; a Class I railroad intermodal hub (port connectivity); a Foreign Trade Zone; a diverse, broadly skilled workforce; land availability (entitled development sites); and economic incentives.
Urbana Varro, LLC, has acquired the 95-suite TownePlace Suites in Greenville, SC. Conveniently located near the super-regional Haywood Mall, the largest in the state with more than 1.3 million square feet of retail space, this extended-stay hotel targets extended-stay, corporate, group and leisure business.
Urbana Varro, LLC is a venture between Urbana Realty Holdings, LLC, an Atlanta-based commercial real estate investment, development and management company, and Varro Hospitality, LLC, a Dallas-based hotel investment and management company. The purpose of the venture is to acquire risk-adjusted investment opportunities on behalf of the Fund.
The TownePlace Suite will undergo substantial renovations in order to remain at the top of its competitive class in the market. Facilities for providing complimentary hot breakfast and meeting space, as well as improvements in the exercise room, patio and public space will be added.
McKibbon Hotel Group, one of the Southeast’s leading hotel management groups with more than 75 properties, is pleased to announce the addition of Aloft Hotel in the heart of downtown Greenville, South Carolina. The Starwood Hotel and Resort brand hotel, a vision carrying the DNA of W Hotels, is scheduled to open in early 2015 on Laurens Street facing the newly renovated plaza formerly known as Piazza Bergamo.
Adjacent to Greenville’s ONE Building, the hotel will sit atop a new 474-space public parking garage. Guests on foot will arrive within the small-scale pedestrian mews of North Laurens Street, a vibrant collection of specialty restaurants, outdoor seating, unique retailers and festive lighting. The ONE Building is home to CertusBank corporate headquarters, Haynsworth Sinkler Boyd law firm, Clemson’s College of Business and Behavioral Science and sits adjacent to Greenville’s Bank of America tower.
The initial stages of the enhancement strategy underway for One and Two Liberty Square, purchased last month by New York-based HighBrook Investment Management Funds, began with the engagement of Upstate-based CBRE | The Furman Co. as the exclusive leasing and management agent of the Class A office towers, an announcement said.
The firm, already entrenched in the property, was best positioned to foster positive tenant and community relationships, said Ed Gargiulo, HighBrook’s vice president of Asset Management.
“Given the uncertainty surrounding the asset over the last couple years, we knew it was essential to align ourselves with a firm that understands the value of a strong owner-tenant relationship,” Gargiulo said.
The proposed hotel would have about 300 rooms and be built at the corner of Spring and Washington streets in the next year or two, though no firm schedule has been set, said D.J. Rama, president of JHM Hotels.
He said the Greenville-based company would develop the “premium brand” hotel “as the market matures.”
For now, he said, JHM Hotels needs a “little breather” after its multi-million-dollar renovation of the Hyatt Regency Greenville.
“We will continuously focus on Greenville because this is our home turf,” Rama said. “And we will be working to make sure we put Greenville on the map and put the quality products in this town.”
New York-based HighBrook Investment Management, an independent value-oriented investment firm formed in 2011, purchased One and Two Liberty Square in Greenville’s downtown business district at 55 and 75 Beattie Place.
Totaling over 445,000 square feet, the pair of mid-rise office towers are currently 74.4% occupied and include Ernst & Young, Brown Mackie College, Jackson Lewis, Gallivan White and Boyd, Dority and Manning, McAngus Goudelock and Courie, Commerce Club, and Sherman Financial Group as tenants.
CBRE | The Furman Co.’s Craig Stipes and Matt Covington, in partnership with CBRE’s Patrick Gildea and Ryan Clutter in the firm’s Charlotte, NC and Washington, DC offices, marketed the buildings on behalf of the seller, Lehman Brothers Holdings, and were also credited with procuring the buyer. The sale closed on July 15, 2013.
Council members approved building a 470-space parking garage at the intersection of Richardson and Washington streets. Council members also approved a development agreement with Greenville Three LLC, an affiliate of Hughes Development Corp., which plans to build a 125-room hotel above the parking structure.
The parking garage is greatly needed, Mayor Knox White said, and is being funded with revenues generated downtown and bond proceeds. The hotel brand has not yet been identified, he added.
The city’s investment, along with $4 million it previously provided to build the nearby public plaza Piazza Bergamo, is expected to generate more than $100 million in private investment, City Manager John Castile estimates.
Greenville-based Realtylink LLC is redeveloping a shopping center across from Haywood Mall, with T.J. Maxx, DSW and a Jo-Ann Fabric and Craft store slated to open there this year.
JoAnn is opening later this month at the Crosspointe Plaza on Woods Crossing Road. T.J. Maxx, which is relocating from a smaller nearby store, and DSW shoe store both plan to open Oct. 1, according to commercial real estate agent Neil Wilson.
The plaza was previously anchored by Toys R Us and Circuit City.
Real Data has released their June 2013 Greenville-Spartanburg apartment report. A few key figure include:
- The current overall occupancy is 92.7%
- Over 500 units were added to the supply during the past six months
- The average monthly rent increased to $749 over the past six months
KBS Legacy Partners Apartment REIT, Inc. has acquired the Millennium Apartment Homes, a 305-unit apartment community in Greenville, S.C. for $33.6 million. No cap rate was reported.
The community consists of 36, two-story buildings that were 93-percent occupied at the time of acquisition. The purchase ups the KBS Legacy Partners Apartment REIT portfolio to a total of 2,599 apartments units in Maryland, Minnesota, Texas, North and South Carolina and Illinois.
The Class-A Millennium Apartment Homes was built in 2009 and includes a clubhouse and 76 garages. It covers 303,131 rentable square-feet across nearly 33 acres.
“The Millennium Apartment Homes represent another great addition to KBS Legacy Partners Apartment REIT’s growing portfolio,” said W. Dean Henry, chief executive officer of KBS Legacy Partners Apartment REIT. “We believe its location between Charlotte N.C., and Atlanta, plus Greenville’s job growth potential, makes it a very attractive addition.”