Charleston, SC - Market study?

Would anyone have any first hand experience in the Charleston MF market? Or possible have a market report, either individual or from the larger shops that they wouldn't mind sharing?

Appreciated in advance.

8 Comments
 

Very active MF market, be careful. I'd look at being a buyer on stabilized product there but not sure about developing in Charleston as that market is a little late in the cycle. Charleston is one of the main secondary/tertiary markets that Southeastern MF groups have piled into the past 3-4 years (along with Nashville, Greenville, SC and Asheville, NC). Whatever deal you look at has probably already been looked at by 5 other groups. No joke.

 

I recall reading it was one of the top cities for millennials - decent wages, low cost of living, warm weather, beaches, nearby colleges.

Can't comment too much on the market as I've never u/w a deal there, however, can say the sun belt cities (especially Charlotte, Raleigh, Durham) have exploded with population growth, development, and price appreciation this cycle.

Yes, there might be a temporary slowdown as the market absorbs the pipelines in these markets. However, I believe there is a bright future to these southern cities as people continue migrate for the reasons above.

Good luck.

 

Agreed w the above; no convenient numbers/fact/figures on hand but I can say that the smart money seems to believe in Charleston from an apartment standpoint. I have seen new construction way out in the 'burbs go for surprisingly low cap rates.

 

Our shop has been actively buying in Nashville and have been very happy with the returns thus far. We own in Core LA but the returns are getting slimmer by the day and it seems like every time we come close to a PSA execution somebody comes in with 3 days left on their 1031 and goes non-contingent day 1. Our principles have expressed interest in Charleston and a fellow WSO'ER was kind enough to send me a AxioMetric market overview. We would be buying value-add/stabilized assets, no ground up developments.

 
"networkyournetworth"

We would be buying value-add/stabilized assets, no ground up developments.

That's key in Charleston. Their design review board and restrictions are pretty insane.

Commercial Real Estate Developer
 
"CRE"
networkyournetworth:

We would be buying value-add/stabilized assets, no ground up developments.

That's key in Charleston. Their design review board and restrictions are pretty insane.

This. True Story but I saw a MF asset once where the design review board made the property change the font of the "Future Resident Parking" paint on the curbside.

 

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