Archive for Spartanburg
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.
Corporate Center, a Class A flex park situated on 193 acres off of I-85 in Spartanburg, is experiencing tremendous growth. To meet the high demand for flex space, the Corporate Center has laid the foundation on a new building at 130 Corporate Drive, which is expected to be available for occupancy starting January 1. In the next six months, Corporate Center is projected to build a second 50,000-square-foot building on the same site. Additionally, five new tenants have moved into the existing buildings collectively leasing a total of approximately 90,000 square feet.
The building currently under construction will be the eighth building on campus and will offer an additional 50,000 square feet of space that can be expanded up to 72,000 square feet. All utilities, including fiber optics, will be available, and additional parking can be added as needed. Dan Dunn of NAI Earle Furman, a leading full-service commercial real estate firm, is the leasing agent.
With these new occupants, Corporate Center has a roster of 19 companies leasing a total of approximately 300,000 square feet.
Spartanburg County tax notices will begin arriving in mailboxes as early as this week. This was a reassessment year in Spartanburg County, meaning property values were adjusted as required by state law every five years. According to this article there have been fewer protests of reassessed values than expected. If you need assistance with a commercial or high-end residential appeal, please call Dale Stigamier at Integrity Real Estate Advisors. The deadline for filing an appeal in Spartanburg County is December 13th.
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.
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.
Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of Timber Creek, a 116-unit apartment property located in Spartanburg, SC, according to Bryn D. Merrey, regional manager of the firm’s Charleston office. The asset sold for $4,850,000 at a 7.85 percent CAP rate.
Mark Boyce, Andrew Mays and Paul Vetter, investment specialists in Marcus & Millichap’s Charleston office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The buyer, a limited liability company, was secured and represented by Mark Boyce, Andrew Mays and Paul Vetter.
Timber Creek is located at 501 Camelot Drive in Spartanburg, SC. The property consists of 32 one-bedroom units, 64 two-bedroom units and 20 three-bedroom units. Units have washer/dryer connections and fully equipped renovated kitchens. Timber Creek was built in 1972 and renovated in 2008. Amenities include pool, management office/clubhouse, and playground. At the time of sale occupancy was 98 percent.
Chambers Street Properties, a net lease industrial and office real estate investment trust, announced it has acquired 1200 Woods Chapel Road, a 156,800 square foot industrial building near Spartanburg, S.C. With this purchase, Chambers Street now owns more than 2.1 million square feet of warehouse/distribution properties in the Spartanburg area.
Completed in 2009, the concrete tilt-up building is fully leased on a triple net basis to a leading supplier of automotive seating and electrical power management systems. The property is situated on a 32.5-acre parcel and the building is expandable to 273,000 square feet.
The property is located one mile from I-85 and two miles from Greenville-Spartanburg Airport. It is in close proximity to a new intermodal facility that the South Carolina Inland Port is developing in Greer, S.C., which will provide an overnight Norfolk Southern rail link for freight to and from the Port of Charleston. The inland port is scheduled to open in September 2013.
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
Cushman & Wakefield | Thalhimer announces the sale of the former Leigh Fibers warehouse located at 2800 Nazareth Church Road in Wellford, SC.
Covington Capital purchased the approx. 242,652 sq.ft. industrial property situated on 18.8 acres from Leigh Fibers as an investment. Covington plans to renovate the building and market from 60,000 to 240,000 sq.ft. as available for lease.
- 18’ clear height
- Built in 1970 / concrete block & red brick construction
- All utilities
- 18.8± acres
- 2,652 sf of office
- 300’ X 800’
- Approximately 8± excess acres
- Warehouse segmented into 4 – 60,000 sf bays
- 17 dock doors with 1 exterior loading platform
Amid an ongoing dispute between the city of Spartanburg and the Commission of Public Works, Spartanburg Water’s purchase of 10 acres on the Pacolet River six years ago is being scrutinized — both for the way it was purchased and how much was paid.
In 2008, the Commission of Public Works acted on advice from its attorney and formed a limited liability company — Fingerville Properties LLC — to purchase the land on the Pacolet River for $800,000 — significantly more than the owner would have sold the property for the prior year. The land, with an old wastewater plant, wooden dam and abandoned mill, was an important acquisition to ensure long-term control of the water supply, Spartanburg Water General Manager Sue Schneider said last week. According to tax records, the property then had a tax value of $137,000.
Assistant City Manager Chris Story said staff has in discussions with Royce Camp, of Midtown Properties, LLC, for the last several weeks. Midtown Properties owns several downtown buildings and has experience with mixed-used development such as the Cantrell Wagon Building, which is now home to Carriage House Wines on the lower level and second-story apartments, according to a city memo.
Midtown has proposed a new building on the east side of Wall Street directly across Broad Street from City Hall. Midtown wants to purchase a portion of a city-owned parking lot, which would reduce the lot size from 21 to 16 spaces.
More than 750 commercial building permits were issued across the Upstate during the first quarter, an increase of 20% from the same period a year ago, according to new data from Tennessee-based construction analyst The Market Edge Inc.
According to the latest report from the U.S. Census Bureau, the annual rate of construction spending nationally reached $885 billion in February, up 1.2% from the previous month and 7.9% from a year ago. Residential construction accounted for most of that annual gain, increasing 20%.
In the Greenville and Spartanburg metro areas, residential construction has picked up considerably this year.
Mark Boyce, of Marcus & Millichap represented the seller in the sale of Valley Creek apartments at 9085 Fairforest Road, Spartanburg, SC. The sale price was $3,440,000 ($33,725/unit). The cap rate reflected is below 8%.
Valley Creek is comprised of 102 units and is located at 9085 Fairforest Road, Spartanburg SC, 29301. The exteriors have been recently renovated and the asset offers great visibility and traffic counts from Fairforest Road. The property is less than two miles from both I-26 and I-85 business route and centrally located to downtown Spartanburg and Greenville, SC.
Valley Creek was constructed in 1973 of wood framing and brick and vinyl siding. The roofs have recently been replaced and are pitched composite shingle. The vinyl siding and windows have also recently been replaced. The property consists of seven, three story buildings, a laundry facility and leasing office. The property offers a unit mix of one, two and three bedroom floorplans. There are 21 one bedroom/one bath units at 840 square feet, 60 two bedroom, 1.5 bath units at 1050 square feet and 21 3bedroom, two bath units at 1200 square feet. All units have central heating and A/C. There is also a pool, playground, laundry facility, fitness center, picnic barbecue areas and business center with free Wi-Fi.
A subsidiary of Phoenix, Ariz.-based Cole Corporate Income Trust Inc. paid $63.3 million to acquire the 1,015,740 square-foot warehouse leased to Amazon in Spartanburg, according to a regulatory filing. The facility was built last year and opened in the fall with around 375 employees.
Cole ID Spartanburg SC LLC acquired the facility from Tango S.C. LLC in December, according to a filing with the U.S. Securities and Exchange Commission. The site is 100% leased to Amazon.com.dedc LLC.
The 15 year lease term is from 12-17-2012 to 9-30-2017, and there are four 5-year options to renew. A capitalization rate of 6.22% is reflected, based upon the base rent of $3,939,131 ($3.88/sf) with no deductions for vacancy or expenses.
Interthinx, a leading provider of comprehensive risk mitigation solutions for the financial services industry, has released its quarterly Mortgage Fraud Risk Report covering data collected in the third quarter of 2012.
According to the most recent analysis, overall risk nationwide has decreased by nearly 8 percent to the lowest value observed in the past two years. However, significantly increased levels of fraud risk in Florida pushed it past Nevada and into the top spot for overall fraud risk. Florida also appears on three of the four type-specific top 10 riskiest lists this quarter. Of particular concern is the finding that in Florida, investment purchases have more than three times the level of employment/income fraud risk than purchases for primary residences.
Spartanburg County was identified in the report as being a “high risk” area for mortgage fraud.