IN THE NEWS

Goose Creek's Game-Changing District Unveiled as Former Cinebarre Transforms!

“This project is really the first of its kind in Goose Creek,” Mayor Greg Habib said last week. “It imitates a lot of other projects that have happened in Mount Pleasant and west of the Ashley where housing, retail, residential and office have been put in one place.”

Read more from its source: postandcourier.com

 PAUL'S MARKET PHILOSOPHY

Real Deals Today: Insights from Lance Patterson, CEO, Patterson Real Estate Advisory Group

At the recent Urban Land Institutes Carolina Chapter 2024 conference, I had the opportunity to listen to Lance Patterson, CEO of Patterson Real Estate Advisory Group, who shared his invaluable insights into the current capital markets landscape.

Specializing in multifamily and diverse developments, Peterson highlights the distinct contrast between regulated debt and plentiful, unregulated equity, offering ample opportunities for discerning investors. He observes a robust multifamily sector, striking a balance between aggressive construction and avoiding overbuilding, unlike the office sector, which heavily relies on tenant occupancy regardless of rent rates.

Despite developers accumulating significant cash reserves over the past two years, Peterson notes a scarcity of viable deals, prompting amicable negotiations between owners and banks to determine property ownership arrangements. Additionally, construction loans have remained stagnant, with banks preferring payoffs to facilitate new lending ventures. Peterson predicts a period of flat rental rates this year, with marginal increases forecasted for the following year.

While multifamily sales have cooled overall, exceptions arise, particularly with expiring construction loans. Peterson advises caution against expecting a swift rebound in multifamily prices, urging developers to carefully assess interest carry in their financial planning. Moreover, he observes a shift in institutional capital towards non-traditional sectors such as mobile home parks, driven by growing interest among high net worth individuals in purchasing office buildings, facilitated by the appeal of 1031 exchanges.

Altogether, Peterson emphasizes the importance of adaptability and strategic foresight in navigating today's capital markets, where cash transactions and prudent debt utilization emerge as key strategies amidst other evolving industry dynamics.

NEW DEALS

As of this week there have been no new listings, nothing has gone under contract, and none had closed.

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.