Hilton Garden Inn Greenville Sold for $15M

By Eliza Theiss, Associate Editor

Leadership of Hunter: Lee Hunter – Chief Operating Officer, Robert L. Hunter – CEO, Teague Hunter – President

Hunter Hotel Advisors has announced the sale of the 120-key Hilton Garden Inn Greenville located at 108 Carolina Point Pkwy. in Greenville, S.C. The company, a leading provider of specialty brokerage services and capital markets advisory services, represented seller Deean Hospitality LLC—a South Carolina-based company.

Hunter brokers Teague Hunter and Trey Scott were involved in the property’s sale to Summit Hotel Group. According to a press release, the hotel asset sold at a value of $127,000 per key, adding up to a grand total sale price of $15 million.

“We marketed the hotel to well capitalized buyers with whom we have very strong relationships. Like most of our transactions today, the process was completed quickly and quietly,” declared Hunter Hotel Advisors President Teague Hunter. “We were able to bring the property to market and complete the transaction in just five months.”

The 120-key, four-story Hilton Garden Inn Greenville features amenities such as 24-hour business center, meeting rooms (with the largest offering 2,508 square feet of space, capable of accommodating 250), complimentary Wi-Fi, a fitness center, swimming pool and 24-hour Pavilion Pantry Market. Other onsite dining/lounge options include the Pavilion Lounge and the Great American Grill.

According to Trey Scott, vice president of Hunter Hotel Advisors, the hotel’s location and strong cash flow made it an appealing investment for buyer Summit. “They outbid three strong competitors,” he added.

Hunter currently has just short of 100 hotels on the market worth almost $1 billion. As of this transaction, Hunter has successfully closed 22 transactions in 2013, with six more sales expected to close before the month is out.

Image courtesy of Hunter Hotel Advisors’ Facebook page 

SCRA Will Have Presence at 4,500-Acre Master Planned Community

By Eliza Theiss, Associate Editor

SCRA, an applied research corporation based in Columbia, S.C., has announced entering a deal to buy 10 acres at Nexton, the 4,500-acres master planned community that broke ground earlier this year. The company plans to move its Charleston operations and most of its 185 employees to the newly acquired property at the junction of I-26 and Highway 17A.

The deal, which also includes an option to buy seven more acres at the same location, is expected to close within 90 to 150 days, with groundbreaking for the new facility expected to happen within six to eight months. The new facility, currently in its design stage, is expected to be operational by October 2014.

SCRA has signed Choate Construction as general contractor for the project. LS3P Associates Ltd. is joining the development team, handling the architectural aspect of the facility.

“We are excited to announce our plans for relocation,” said SCRA CEO Bill Mahoney. “While we carefully evaluated several properties throughout the region, Nexton was best-suited for our needs, location and space requirements. We look forward to being a part of a community where technology and sustainability are embraced in a walkable, urban environment.”

MWV Community Development and Land Management President Kenneth T. Seeger added: “SCRA and Nexton are a perfect fit. We are both committed to ‘what’s next.’ SCRA’s mission is to help develop technology-based companies, and Nexton seeks to become the region’s most technologically advanced community.”

Nexton, the 4,500-acre master-planned community being developed just a short distance from Charleston at the junction of I-26 and Highway17A, will contain several neighborhoods and villages, as well as major employment opportunities. It will feature several multifamily developments, hotels, LEED-certified office buildings, retail developments, and entertainment and dining venues, along with an abundance of parks. Nexton is being developed by MeadWestvaco Corp.’s MWV’s Community Development and Land Management Group.

Image courtesy of www.nextonsc.com

South Carolina Manufacturing Secures New Investments; Charleston Trophy Office Building Sold

By Eliza Theiss, Associate Editor

Austrian-headquartered Constantia Hueck Foils LLC, a company present in South Carolina since 1997, is set for an expansion that will increase both its production facility as well as its workforce. According to an announcement made by the South Carolina Department of Commerce, the $12 million investment will increase Constantia’s current facility, located at 1111 Northpoint Blvd. in Blythewood, by 15,000 square feet.

Groundbreaking for the expansion is set for April, with an expected finishing date of October 2013. Construction is handled by an unnamed local contractor. The expansion will also create 15 new jobs, with hiring set to start during the summer. The Vienna, Austria-based company specializes in the development and production of high-performance packaging for the pharmaceutical and food industries.

Another major boost to the South Carolina manufacturing industry was recently given by Miami-based Essex Holdings Inc. by announcing plans to establish a new manufacturing facility in Marion County. The global resources company declared an investment of $54.4 million and 215 new jobs. The new facility is expected to be operational before the second quarter is out.

As of January 2011, South Carolina had recruited more than $8 billion in capital investment and more than 21,000 jobs in the manufacturing sector.

In other news, The Post and Courier recently reported the $24 million sale of Charleston’s newest office building. Located at 25 Calhoun St. in Charleston’s downtown, the property was sold by Concord Park Charleston LLC to CMB Property Co.’s 25 Calhoun CMB LLC.

The trophy-grade office building is currently 93 percent occupied and offers leases for $35 per square foot. The four-story property opened in 2011 with an $18 million price tag. It features a variety of sustainable design elements.

Image courtesy of GoogleMaps

Chart courtesy of Colliers International 

South Carolina Hotel Business Remains Strong; Student Housing Market Slows Down

By Eliza Theiss, Associate Editor

U.K.-based InterContinental Hotels Group PLC (IHG) recently announced the opening of the Holiday Inn Express Charleston Downtown–Ashley River following a multimillion dollar conversion. The 153-key downtown Charleston property recently underwent extensive renovation that included replacing all fixtures, equipment and furniture. Some of the hotel’s newest features include walkout balconies and granite countertops.

The eight-story asset is located at 146 Lockwood Blvd. Onsite amenities include a fitness center, outdoor pool, 24-hour business center, circa 700 square feet of meeting space and high-speed Wi-Fi. The property, franchised by an IHG affiliate, is owned by Charleston OPCO LLC and managed by Charlestowne Hotels.

Located next to the Ralph H. Johnson VA Medical Center and just two miles away from Charleston’s historical district, Holiday Inn Express Charleston Downtown–Ashley River is the second Holiday Inn-branded hotel to open in the city in 2013 following the Holiday Inn Historic Charleston Downtown, which opened in January.

In other hospitality news, Paramount Lodging Advisors (PLA) announced brokering the sale of the 92-key Quality Inn and Suites in Spartanburg, S.C. The hotel advisory and brokerage firm represented seller LA3D LLC.

Located at 160 Simuel Rd., the 1998-built property, originally a Fairfield Inn, was converted in 2011 to a Quality Inn and Suites property.  Amenities include a fitness center, outdoor pool, business center, meeting space and conference center.

In other news, plans for the long-hyped 800-unit student housing projects slated to rise on the site of the old 320,000-square-foot Palmetto Compress warehouse have been scrapped. According to Student Housing Planet, Edwards Communities Development Co. informed Columbia city officials of its withdrawal from the plan after the Columbia Design/Development Review Commission denied the developer’s application in late 2012, this followed by a lawsuit by preservationists trying to prevent the building from being razed.

According to The State, Columbia’s city government may now buy the historic property and redevelop it as either residential or mixed-use.

Photo courtesy of Paramount Lodging Advisors via PRWeb

332-unit Columbia Community Picked Up by SVB; Eco-Friendly E-Waste Processor Announces $40M Investment

By Eliza Theiss, Associate Editor

Kansas City-based SBV Communities has announced the purchase of the 332-unit Quail Run Apartments in Columbia. The purchase, which closed February 22, is SVB’s first step into the Columbia market. The purchase price has yet to be disclosed.

“Columbia represents a fundamentally solid investment with significant upside potential at measured risk,” declared Director of Multi-Family Acquisitions Chris Thomson in a news release. “Occupancy rates have declined significantly since 2010, and rental rates have increased three percent during that time.”

He added: “With rental demand expected to continue and new construction not projected to meet that demand for several years, we are extremely excited about the prospects for Quail Run.”

The 15-asset strong SVB Communities was formed in 2009 and comprises the multifamily real estate division of Spectrum Business Ventures Inc.—a private investment firm based in Kansas City, Mo.

Quail Run Apartments sits on 42 acres of wooded lands and consists of lofts, garden-style apartments and town homes offering one-, two- and three-bedroom units. Units feature fully equipped kitchens with breakfast bars or adjacent formal dining areas, walk-in closets, extra storage, and screened-in porches. Community amenities include a country club-style swimming pool, fitness center, lighted tennis courts, fishing pond, pavilion with grilling area, and pet-friendly walking trails.

In other news, Recleim—a start-up recycler of appliances and e-waste materials—recently announced it will be establishing its first recycling plant in Aiken County.  The facility, a $40.6 million investment, will be located at 118 Hard St. in Graniteville—about an hour away from Columbia. The project is expected to generate around 200 jobs.

The Recleim’s plant will feature state-of-the-art, proprietary technology that will safely contain harmful substance typically found in e-waste while also salvaging about 95 percent of processed e-waste. Furthermore, the facility is expected to be one of the most environmentally responsible and efficient in North America.

Charts courtesy of Colliers International

University of South Carolina Keeps Local Student Housing Market Hot

By Eliza Theiss, Associate Editor

Student housing is now one of the most dynamic markets in South Carolina, especially in the Columbia metro area. One of the main drivers of the local housing boom has been and continues to be the University of South Carolina (USC), which has steadily increased it student body.

In fact, Student Housing Planet reports that USC has 5,600 more students than 10 years ago. Increasing enrollment was necessary to balance out the loss of state funding, but it has created a shortage of student housing. Furthermore, a significant percentage of existing dormitories needed upgrades. Half of the 25 student residences still need upgrade and maintenance work.

Student Housing Planet reports that USC has spent $94.6 million on renovating six student dormitories in the last four years. Among those is Patterson Hall, which underwent a $32.5 million upgrade in 2011, turning an outdated property into a suite-style development striving for LEED Silver certification. The 544-bed, nine-story dormitory features amenities such as smart classrooms, a cyber lounge, Wi-Fi, spacious kitchens on every floor and larger rooms.

Such revamping is probably what the 551-bed Women’s Quad is in for as well, as the three dormitories within it—McClintock, Sims and Wade Hampton—are slated for a $27.2 million upgrade. By 2015, 1,270 rooms making up seven dorms are slated for renovation at a minimum estimated price tag of $35.4 million. Seven more buildings will be redeveloped or completely replaced after 2015.

The renovation of the Women’s Quad will also include connecting the three dorms, creating 50 more student beds. This along with six new Greek houses totaling 240 beds that could be built in a parking lot across the Greek Village could diminish the housing shortage substantially.

Partnerships with private student residences are needed as well, and there seems to be no shortage of proposed projects. As previously reported on this page, several private student housing projects have been approved in the past few months and are in various stages of development. Such is the Ben Arnold–Monarch Ventures partnership project dubbed Monarch at USC, which aims to redevelop the former SCANA building into an 851-bed, 21-story dorm.

The 258-unit project would offer one- to five-bedroom apartments with amenities such as a study lounge, conference and club rooms, and a fitness center with yoga and steam rooms. Street-level retail, as well as a car and bicycle park, are also imagined.

While Monarch was announced in summer 2012, WC Columbia LLC just recently filed documents with Columbia’s Design and Development Review Commission for a 122-unit 249-bed multifamily project on Pendleton Street near the Amtrak station, reported Student Housing Planet.

Photo courtesy of University of South Carolina Housing’s Facebook Page

Google Invests $600M in Data Center, Michelin Announces $200M Expansion

By Eliza Theiss, Associate Editor

The Palmetto State recently secured two major investments with significant impact not only on local economy and job creation, but also on South Carolina’s global image. First off was Google Inc., launching a $600 million investment in Berkeley County. The tech giant kick-started its $600 million expansion plans during a groundbreaking ceremony at its existing data center operation in the Mt. Holly Commerce Park.

The facility houses computer systems and associated components that support services such as Google search, Gmail, Google+ and YouTube. The company is growing its capacity to meet demand for Google’s services. This additional investment doubles the company’s total spending at Mt. Holly to $1.2 billion.

“When Google first announced plans to come to Berkeley County in 2007, we were attracted to not only the energy infrastructure, developable land and available workforce, but also the extraordinary team from the local community that made us feel welcome,” said Data Center Operations Manager Eric Wages in a press release. Following the investment that created 110 on-site, full-time jobs, Google announced in November 2010 that it will be developing a second data center in Berkeley County.

Google’s data centers are notoriously efficient, consuming 50 percent less energy than the overall average. Greening efforts include collecting storm water to be used for cooling servers, a method implemented at the Berkeley County facility. In 2007, the tech company announced its commitment to become carbon neutral.

In addition to sustainable business practices, Google is also involved in supporting the local community, awarding more than $885,000 in grants to local schools and nonprofits since 2008, while also being involved in implementing a free, downtown Wi-Fi network in Goose Creek, S.C. The company operates—or is in the process of developing—six data centers in the U.S, one in Chile, three in Europe and three in Asia.

In other news, tire maker Michelin North America, another prominent investor in South Carolina, has announced plans to invest $200 million and create 100 new jobs at its Starr, Andersen County facility. The expanded One Bib Way could be operational as early as 2014. The Coordinating Council for Economic Development has awarded Michelin job creation credits, as well as a $1.5 million grant for site development .

Michelin is South Carolina’s largest manufacturing employer, with nine of its 18 North American production facilities located in the Palmetto State. Upon the new expansion’s completion, Michelin will employ nearly 9,000 workers in the state.

Photo courtesy of Google Data Centers

Joint Venture Developing $70M Shopping Center; 100-key Boutique Hotel Breaks Ground

By Eliza Theiss, Associate Editor

With construction well underway at The Corners at Wescott, New York-headquartered Cohen Real Estate (CRE) has announced the creation of a joint venture between North American Development Group (NADG) and Atlanta-based Hendon Properties to develop the first phase of the grocery-anchored shopping center in North Charleston, S.C.

The long-awaited retail power center broke ground in the third quarter of 2012. CRE, a full-service brokerage firm, brought in NADG to provide new equity for The Corners. “Both the original developer and the new equity partner worked seamlessly throughout the transaction to make sure all of the anchor tenant leases and all city approvals were in place so that construction could start right away to meet the demand for the stores to open as quickly as possible,” Vice President of Cohen Real Estate Michael Cleeman, vice president of Cohen Real Estate, declared in news release. Cleeman represented NADG in the transaction, while President Helen Putterman represented Hendon Properties.

As previously reported, the 22-acre project—located on the corner of Dorchester Road and Wescott Boulevard—will be anchored by Harris Teeter and Marshall’s and shadow-anchored by a recently opened Lowe’s Home Improvement store. The 167,000-square-foot shopping center is 80 percent pre-leased.

According to Councilman Dwight Stigler’s website, probable tenants include Starbucks, Moe’s, Rack Room Shoes, a national pet store chain and a national women’s clothing store. The center is expected to be completed in the summer 2013 and has a price tag of $70 million. Phase two of the project will be developed on 13 acres opposite of Lowe’s.

In other news, Local Hotel Adventures announced the groundbreaking of the Andell Inn—a 100-key boutique hotel near Freshfields Village. The independently owned and operated boutique hotel is scheduled to open in early 2014.

The hotel is a lifestyle concept created by Local Hotel Adventures CEO Don Semmler will feature apartment-like living with each of the room types outfitted with a full kitchen and living space. Amenities will include a fitness center, pool, bar and meeting space. The development will create 123 construction jobs and several permanent positions and will have a $22.8 million economic impact.

Photo courtesy of Local Hotel Adventures via Hotel News Resource

40-acre Redevelopment Project in North Charleston to Include Senior Housing

By Eliza Theiss, Associate Editor

40 acres of land in North Charleston are set for a massive redevelopment, as the City of North Charleston and Chicora Gardens LLC are set to enter a $9.2 million purchase agreement for the land, the city has announced. The developer will conduct due diligence and present a master plan before the North Charleston Planning and Zoning Department.

Envisioned as a planned development district with a sustainable interactive environment, the project is expected to revitalize the area around the former Naval Hospital. The recently unveiled initial mock-ups show a mixed-use project abounding in green spaces such as public parks, gardens, living walls and waterfalls around 20 acres.

The development will target the senior population in the area by building a continuing care community featuring senior apartments, assisted living and hospice services. An office building, bank, library, senior recreational facility, pharmacy, restaurants and medical and dental facilities are also envisioned in the ambitious project, set to rise in the 3600 Rivers Avenue area.

Parking will also be constructed and transportation will be expanded. “Transportation is key,” declared Steve Dudash of Davis & Floyd at a press conference announcing the project.

Chicora Gardens has reportedly tapped local firm Davis & Floyd for engineering, structural analysis, landscaping and design for the park and garden element of the project. According to the Charleston Regional Business Journal, the concept is inspired by New York’s Central park.

The 40-acre tract of land comprises the 23-acre former Naval Hospital property and, according to the Charleston Regional Business Journal, the land where the Shipyard Square shopping center once stood. The latter was purchased and subsequently razed by the city for $4.2 million.

The former Naval Hospital site, made up of the 10-story, 360,000-square-foot main hospital building; an additional three-story structure; barracks; parking; and land totaling 23 acres, was purchased by the city in October 2012 for $2 million via an online auction.

Rick Brownyard  of Mount Pleasant, SC is representing Chicora Gardens.

Photo courtesy of the City of North Charleston

Boeing Buys 178,000-Sq.-Ft. Charleston Office Campus

By Eliza Theiss, Associate Editor

Aerospace giant Boeing Co. is making its mark on the city of Charleston. According to a story by the Columbia Regional Business Report, the Chicago, Ill.-headquartered company has announced it will be purchasing the SCRA Applied Research Center in the northern part of the city.

Although no purchase price has yet been announced, such will reportedly reflect its market value. That will definitely make it one of the biggest purchases of 2012 in Charleston, as the complex was appraised for $25 million in 2010.

The 178,000-square-foot office complex is located at 5300 International Blvd., adjacent to Charleston International Airport as well as Boeing’s North Charleston 787 Dreamliner fabrication and assembly facility. The aerospace company reportedly has no specific plans for the building at the moment, but considering its steady growth in South Carolina, it will be expanding its current operations.

The SCRA Applied Research Center is a 20-acre, three-building business and research campus. It currently houses offices for various entities such as the Charleston Regional development Alliance, the Lowcountry Graduate Center, SCRA and even Boeing. While SCRA owns the buildings themselves, the 20-acre tract the campus sits on is the property of the Charleston County Aviation Authority.

After Boing finalizes its purchase deal for the building on December 13, SCRA will reportedly stay on as property manager throughout 2014 and will keep its offices until all other tenants have successfully relocated. Boeing will also continue to lease the land from the Charleston County Aviation Authority.

South Carolina-based SCRA is a non-stock, tax-exempt applied research corporation. Formed in 1983, SCRA was started by the South Carolina Legislature under a public charter to help develop technology-based industries in the state, with a founding grant of $500,000 and 1,400 acres of undeveloped land. The corporation has been self-sufficient ever since.

Photo courtesy of SCRA

Chart courtesy of Colliers International