PAUL'S MARKET JOURNAL

Daniel Island’s Evolution: Matt Sloan’s Pioneering Development Journey

Daniel Island, once a modest hunting and fishing outpost, has transformed into one of Charleston’s premier communities, a change spearheaded by the visionary developer: Matt Sloan. I had the pleasure of hearing from Sloan this week, where he gave us a look behind the scenes of the development of Daniel Island.

Sloan, whose roots trace back to a construction-centric family in the Bronx during the tumultuous 1970s, has melded his early life experiences with a robust career in development to reshape Daniel Island into a model of urban planning and sustainable living.

Early Influences and Career Beginnings

Matt Sloan first ventured into the South in his 20s, eventually moving to Charleston in 1991. With a background in industrial engineering and direct experiences from life insurance (putting together financing of large real estate deals) Sloan was well-prepared for the challenges of large-scale development. His curiosity about construction, sparked by watching buildings rise in Manhattan and managing their worth as a CRE appraiser, fueled his move towards real estate development.

Strategic Development and Visionary Planning

The real transformation of Daniel Island began in 1991 when Mayor Joe Riley, recognizing the island’s potential, annexed the property to The City of Charleston, envisioning it as a crucial middle-class area with substantial office space potential. At the time, this decision was extremely controversial with the media dubbing this as “Little Riley’s Louisiana Purchase”.

Nevertheless, Sloan was engaged by the Guggenheim family (current owners) utilizing connections from his Columbia University days and navigated political and economic challenges to kickstart the island’s development. The master planning team, now acclaimed globally, drafted a flexible zoning code that was integral to the island’s diverse development, allowing Sloan to integrate residential, commercial, and recreational spaces seamlessly.

Major Milestones and Infrastructure Development

The development trajectory of Daniel Island was marked by significant infrastructural milestones. The opening of the Mark Clark Expressway in 1993 and the interchange in 1996 were pivotal, enhancing access and boosting development. The strategic placement of a golf course aimed to position Daniel Island as a competitive destination akin to Hilton Head, drawing both residents and businesses. It worked.

Financial strategies were also crucial. After the naval base closure in 1996, which dramatically affected the local economy, Sloan had trouble raising money for the first initial phases of the project. He ended up securing capital to launch the island’s first neighborhoods from Piggly Wiggly, one of the major Grocers in Charleston at the time. It wasn’t until the 2000s when he was able to access capital from national firms.

Sustainable Growth and Community Impact

Under Sloan’s guidance, Daniel Island grew not just in physical infrastructure but as a vibrant community. His intention was to create a submarket rather than just a subdivision. He wanted it to feel like you were in a different city, or at least in a culture separate than the other areas of Charleston. As someone who has personally lived on the island- he truly created a world class destination. This vision was realized through thoughtful zoning and continuous community engagement, ensuring that the island’s growth aligned with the needs of its residents.

Looking Forward

As Charleston faces an extreme housing shortage and contemplates future growth towards areas extending up I-26 to Orangeburg, Sloan’s insights remain invaluable. His commitment to infill redevelopment and making areas nicer—rooted in his comprehensive understanding of urban planning and love for building—continues to influence Charleston’s development landscape. What’s next? Focus on Point Hope, a 14,000 acre community on Clements Ferry Rd and continue to do what he loves.

Advice for Developers:

Matt Sloan stresses the importance of infill development in Charleston, particularly targeting housing needs within I-526. He also predicts Orangeburg will become part of the Charleston Metro Area and advises focusing on land along I-26 for future opportunities.

Special #shoutout to Jeremy Beaman at StartupGrind for putting this together

IN THE NEWS

Home prices climb in Charleston tri-county region as inventory struggles to keep up

Despite a slight increase in first-quarter home sales by 0.2 percent in Charleston, Dorchester, and Berkeley counties compared to last year, the median home price rose by 4.2 percent to $421,000.

Inventory has risen by 11 percent year over year, but with only 2,756 homes on the market, it's far from meeting the demand, with approximately two months of inventory available as of April.

The region needs around 7,000 more homes to reach a balanced market, which seems unlikely without significant economic disruption.

Demand for turnkey homes is high, particularly in growing towns like Summerville, Goose Creek, and Moncks Corner, as more buyers seek properties without major renovation needs.

Despite high interest rates and costs of ownership, pending sales are up 65 percent year over year, indicating continued strong demand in the market.

Source: The Post and Courier

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NEW PUBLICLY MARKETED DEALS IN CHARLESTON

As of this week, there are 1 new listing, no property has gone under contract, and nothing has closed.

4020 O’Hear Avenue - fully leased 16-unit multi-family opportunity just 1 mile from Park Circle. All units renovated in 2021. Residual land (.35 acres) for potential additional development. Coin-operated laundry with 50/50 revenue split. Additional 16-unit structure destroyed by fire. See flyer here.

What I’m watching:

Both 4020 O’Hear Ave and 3317 Florida Ave have recently entered the market within the past two weeks, and are situated in the same neighborhood. As a real estate broker with extensive experience in this area, I am closely monitoring these properties. They are listed at $168,750/unit and $160,000/unit, respectively, and have been renovated to achieve rents close to market rates. However, their pricing appears aggressive given the local market conditions. It will be interesting to see how the market responds to these valuations.

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.