IN THE NEWS

Breaking Waves: SC Ports Set to Expand with Acquisition of Former Manufacturing Hub

South Carolina Ports Authority is acquiring the former WestRock paper mill site in North Charleston, enhancing port capacity at the Port of Charleston. SCPA is using the funds from the sale of Union Pier to Ben Navarro.

Source: charlestonbusiness.com

 PAUL'S MARKET PHILOSOPHY

Charlotte's Urban Magic: What Charleston Can Learn from Our Neighbor's Downtown Revival!

Recently, I attended the Urban Land Institute's Carolina's Chapter 2024 Conference in Charlotte, NC. The insights gained there, particularly about Charlotte's urban development, have notable implications for Charleston.

In this particular panel, moderated by Sofia Song from Gensler.com, they focused on Building Beautiful Urban Cores, with a specific emphasis on the Charlotte area. At first, they revealed that 3/4 of respondents have a deep affection for their downtown areas. This mirrors the sentiment in Charleston, where downtown is also highly regarded. However, a concern that stood out was safety: 2/3 of respondents in Charlotte feel that safety has declined over the past two years, a sentiment echoed in Charleston with the increased security late at night on King St.

Affordability is increasingly problematic, with half of the survey respondents in Charlotte viewing it as a growing issue. This parallels the affordability concerns we’re seeing in Charleston’s urban and suburban spaces. Interestingly, families with young children are most attracted to downtown living.

A surprising insight was that 66% of remote workers in Charlotte visit downtown on their remote days, indicating a strong ongoing connection to urban centers, much like in Charleston where many co-working stations have developed. It was noted that both remote and non-remote workers have similar desires for their downtown experiences.

Welch Lyles from Asana Partners, a private equity real estate firm with a focus on retail-driven mixed-use development, discussed the significance of creating micro-districts within cities, a not-so foreign concept to Charleston, where our neighborhoods go back to the 1700s. Tracy Dodson, Assistant City Manager and head of economic development in Charlotte, shared insights on balancing flexibility and adaptability in urban development while maintaining the area's unique character. She emphasized the importance of innovative zoning and collaboration with property owners and city planners, strategies that are being mirrored in Charleston.

The discussion highlighted that underutilized office spaces pose a challenge, and while conversion is one solution, factors like building structure, parking, and existing leases are critical considerations. The creation of vibrant mixed-use spaces relies on cohesive efforts from the city, public sector, and community, understanding that beautiful spaces contribute to affordability and livability.

A successful lifestyle district, as envisioned in Charlotte, is one that serves a diverse population – youth, workers, residents, and local tourists – and is active for 18 hours a day. It should offer an array of experiences within a half-mile walkable radius. This concept of an 18-hour destination is particularly relevant for Charleston as we aim to create engaging, community-centered urban spaces.

In Charlotte's South End, the removal of restrictive rules has allowed for greater creativity, leading to a dynamic mix of transient, residential, and business uses, a model that could be beneficial for Charleston’s own urban development in our sub-markets.

Overall, the insights from Charlotte's approach provide a valuable framework for Charleston, emphasizing the need for creativity, collaboration, and strategic planning in the evolution of our downtown spaces.

NEW DEALS

As of this week, there have been 4 new listings.

218 E Arctic Avenue - 11-unit multi-family across from Folly Beach, 3 blocks from Center St. Tides. Up and down duplex with a 3rd-floor addition. Separate non-conforming 9-unit motel building. 10 units are long-term rentals. Ground floor duplex: 2 BR, 1 bath. Second-floor duplex: 3 BR, 2 bath, 2 kitchens. Separate apartment building: 5 studios, 4 1-BR units. All rents below market value. All leases month-to-month.

19 Broad Street - The Jacobson Building, dating back to 1794, in Charleston's French Quarter. Once the office of The News and Courier. Offers commercial and residential spaces. Zoning for short-term rentals available for 3 units. Four residential units with modern comforts. Top floor has a one-bedroom residence with a private deck. Some rental units include furniture. See here for the flyer.

1370 Remount Road - The Palmetto Square Apartments: 16 units total. Fifteen 2-bedroom, 1.5-bath townhome style units, and one studio unit. Features include off-street parking, eat-in kitchens, dishwashers, washer/dryer hookups, central air, bedroom balconies, and private patio space. Conveniently located: 2.4 miles to Park Circle amenities, 4.6 miles to Charleston Navy Yard, 5.7 miles to Charleston International Airport.

4345 Leslie Street - 10-unit complex off Dorchester Road in North Charleston. 5 buildings. Units: 5-3BR/1BA, 4-2BR/1BA, 1-2BR/1.5BA. New roofs. Close to I-526, I-26 interchange, Tanger Outlets, Joint Base Charleston. Roper St Francis building new campus nearby. Units metered separately. Market rents: $1900 for 3BR, $1500 for 2BR. Potential to build more units or garages. New washer/dryer hookups in all units.

Nothing has gone under contract, but 1 property has closed.

7620 Hunters Ridge Lane - Package of 5 quadplexes. Currently grossing $20,533 with 75% occupancy. Renovated 2-bed/1.5-bath units rent for $1,150 - $1,400/month, and renovated 3-bed/1.5-bath units rent for $1,750/month. 6 of 20 units renovated, 14 units to be renovated with rent increase potential.

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.