IN THE NEWS

The Beach Co. is currently constructing a development adjacent to The Jasper on the lower peninsula, featuring 15 three-story rentable townhomes and eight apartments.

Named The Charles, the units offer two- and three-bedroom floor plans with private balconies overlooking the Ashley River. Construction is set to conclude in the summer of 2025, aiming to address housing demand following the success of The Jasper since its opening in 2021.

The Charles will complement The Jasper's amenities, including a rooftop pool and fitness center, providing a unique rental offering in the historic downtown market. The townhomes, designed by Antunovich Associates, will feature gated gardens, two-car parking garages, and access to a half-acre park. The project involves partners such as DesignWorks, Forsberg Engineering, Balfour Beatty, and is financed by First Bank.

For more information 
https://postandcourier.com

 PAUL'S MARKET PHILOSOPHY

Charleston's future holds significant changes in the next 5 years.

Let's focus on a few key aspects.

The city has experienced notable population growth over the past decade, and this trend is expected to continue. An average of 35 people per day are moving to the Charleston Metro Area—that’s 3x more than the US average.

About 860,000 people call Charleston home & although most people know Charleston for it’s hospitality, you can see that makes up a small portion of our overall, well-diverse economy.

So where do all of these people live? That’s the Billion Dollar Question

There are 67,443 total housing units in the Charleston Metro Area, with 6,600 more on the way in the next 54 month, representing about a 10% increase in rental units.

However, this is a drop in the bucket. The City of Charleston ran a study in 2023 that stated the City needs 38,422 more housing units just to keep up with current demand.

In the Charleston Metro Area, there are 27 different municipalities with their own identities, zoning laws, and development standards. I believe that most municipalities fall into two different buckets: pro development and anti development, with most of the smaller ones leaning toward anti development.

I firmly adhere that over the next 5 years we’ll see the tide shift for many of these municipalities to pro development. They’ll have to address the problems facing their citizens: increased drive times, limited access to grocery stores, unaffordable places to live, etc

The question is:

Do they want to fight the development coming their way and not have control over the product (via litigation)? Or do they want to embrace the change, taking control over the process and creating unique, interconnecting communities?

Infrastructure

How is Charleston preparing for this growth? To start, South Carolina’s first mass transit system:

The Lowcountry Rapid Transit will begin at Exchange Park in Ladson and extend down to the medical district in Downtown Charleston. The city of North Charleston has taken the first step to re-zone the land off of Rivers Avenue to a higher density-mixed use zoning. I firmly believe that those who take advantage of the opportunity to purchase land or buildings in the vicinity of this system will reap the rewards when it’s completed.

Additionally, state and local governments are investing in crucial infrastructure projects: the expansion of 52 and the redevelopment of the interchange with - I-26. 526 is undergoing improvements and extending its reach through Johns Island, James Island, and forming a loop with Downtown Charleston. Other significant initiatives include flood drainage projects in Downtown Charleston and flood mitigation projects in other suburbs

5 years out

So, what does Charleston look like in 5 years?Anticipate rapid development in the North Charleston Peninsula Charleston Corridor, marked by taller buildings within zoning limits. I also see the city of Charleston allowing denser zoning by right in most districts.

State and local governments are striving for improved connectivity, easing traffic, and fostering a sense of community identity in different pockets.

Housing availability is expected to rise, with approximately 6,600 units entering the market. However, this is far from what’s needed. Hopefully, Municipalities may streamline building processes to accommodate the demand.

In essence, Charleston is evolving into a dynamic, interconnected, and promising urban landscape.

NEW DEALS

As of this week there have been no new listing, nor closed properties, but there is 1 property under contingent

6216 Murray Drive - these 12 Townhouse Units underwent a full renovation in 2023, featuring two bedrooms, and 1.5 bathrooms. At 1,200 Sf, these Units Are some of the largest in the Charleston area with an in place cap rate is 5.49% and 6.80% pro forma. Hanahan offers a family-friendly atmosphere with nearby schools and easy access to Charleston amenities. The location provides proximity to major highways, grocery stores, and notable employers in a growing community with a 26.36% population increase from 2010-2020. See here for the flyer. I’m incredibly interested to see where this closes, as it’s priced at $208,333/unit

The below list contains every single multifamily property (5+ units) being publicly marketed in Charleston that we have compiled from LoopNet, Crexi, Costar, and 2 different multiple listing services.

Should any of these properties interest you, please do not hesitate to reach out to me directly. I would be more than happy to provide you with the additional information I have on file.