The city of Greenville and the surrounding submarkets are exploding with growth. The once-sleepy textile town in the Upstate of South Carolina has now become a robust, diversified economy that is garnering interest from retailers that may have overlooked the market in the past. The change in the city of Greenville has not gone unnoticed; several publications and top ten lists have recognized Greenville for its thriving downtown. From the addition of Falls Park in 2004, an approximately 32-acre oasis in the West End of the city, to multiple mixed-use developments under construction, Greenville’s resurgence has brought new residents, new retail and new life to the region. Growth in the Greenville market has been largely driven by the addition of thousands of new jobs, a low cost of living and highly attractive lifestyle options. Greenville serves as the North American headquarters for BMW, Michelin and Hubbell Lighting, all of which have contributed to significant job growth in the region. As Greenville’s downtown has continued to draw national recognition, retailers have taken notice. In recent years, Greenville has attracted a multitude of national retailers new to the market. Hughes Development’s Project ONE kicked things off when it brought national retailers like …
South Carolina
CHARLESTON, S.C. — MetLife Real Estate has provided a $50 million loan for the refinancing of The Cigar Factory, a historic redevelopment project located at 701 E. Bay St. in downtown Charleston. The mixed-use project spans five stories and features 50,000 square feet of retail space and 150,000 square feet of office space. The Cigar Factory’s office tenants include JLL, KSQ Design, Patterson Real Estate Advisory Group, The Shopping Center Group, Lee & Associates Charleston, Garden & Gun Magazine, SnapCap and ServisFirst. Retail tenants include Fritz Porter, KOKO FitClub, Mercantile & Mash and Trunk Club, as well as event space called The Cedar Room. MetLife Real Estate provided the fixed-rate loan with a 20-year amortization schedule to the owner, a joint venture between Federal Capital Partners (FCP), Wecco Development and Weaver Capital Partners LLC. The joint venture purchased the vacant project in April 2014 and is using the refinancing to replace construction financing, which was provided by PNC Real Estate. FCP provided mezzanine debt and equity in the joint venture’s original purchase. Patterson Real Estate Advisory Group arranged the permanent loan with MetLife, as well as the original construction financing with PNC Real Estate and the partnership with FCP.
CHARLESTON, S.C. — A joint venture between Spandrel Development Partners, Aspen Heights Partners and Northwestern Mutual plans to break ground on a 221-unit apartment community in downtown Charleston known as 511 Meeting Street. Situated in Charleston’s Upper King district, the project will feature more than 9,000 square feet of amenity space, two levels of structured parking and ground-floor retail space. The joint venture plans to break ground this month with completion expected by the second quarter of 2019. Including this project, Spandrel Development has $165 million in downtown Charleston developments underway, including two student housing projects in a partnership with Armada Hoffler Properties.
MAULDIN, S.C. — NAI Earle Furman has arranged the $13.5 million sale of Terrace at Butler Apartments, a 132-unit multifamily community located on East Butler Road in Mauldin, roughly eight miles south of Greenville. Engel Realty purchased the property from 771 East Butler Investors LLC. Built between 1999 and 2000, Terrace at Butler was 94 percent occupied at the time of sale. Tony Bonitati, Kay Hill and Bern DuPree of NAI Earle Furman represented the seller in the transaction. Engel Realty was self-represented.
MISSISSSAUGA, ONTARIO — R&R Real Estate Investment Trust (R&R REIT) has agreed to acquire a portfolio of nine extended stay hotels in the Southeast and Midwest totaling 1,020 rooms for an aggregate purchase price of $35 million. The properties are currently owned and operated by entities controlled by R&R REIT’s Majid Mangalji and Michael Klingher. Five of the hotels operate under the HomeTowne Studios brand, and the remaining four operate under the HomeTowne Suites brand. The properties are located in Kentucky, Georgia, Mississippi, Arkansas, Louisiana, Alabama, Illinois and South Carolina. Blake, Cassels & Graydon LLP and Greenberg Traurig LLP acted as legal counsel to the REIT, and Raymond James Ltd. acted as financial advisor to the special committee charged with approving the portfolio acquisition. Following the closing of the acquisition, the REIT’s portfolio will comprise 10 hotels located in nine states.
Shopping Center Group Arranges Leases in Metro Columbia for Fresh Market, Hobby Lobby, Ulta Beauty
by John Nelson
LEXINGTON, S.C. — The Shopping Center Group, on behalf of developer Columbia Development, has signed three anchor leases at Lexington Marketplace, a 143,850-square-foot shopping center in Lexington. The Fresh Market, Hobby Lobby and Ulta Beauty have signed on at the shopping center, which will be situated at U.S. Highway 378 and Saluda Springs Road. This will be the second location in the metro Columbia area for The Fresh Market. Darrell Palasciano of The Shopping Center Group is seeking additional retail and restaurant tenants at the property, which is currently 70 preleased.
CHARLESTON, S.C. — Grandbridge Real Estate Capital has arranged the $51 million refinancing for Bank of America Place, a 144,000-square-foot, four-story office building along Meeting Street in Charleston. The office building features ground-floor retail space and an attached 355-space parking garage. Tenants include Bank of America, New York Life, Morgan Stanley, Wells Fargo Advisors, Parker Poe Law Firm and Resurgent Capital Services. Russ Balderson and Kevin French of Grandbridge arranged the loan through AIG Global Real Estate on behalf of Charleston Financial Center LLC, a subsidiary of Oceanside Resorts Inc., which purchased Bank of America Place in 2004.
CHARLESTON, S.C. — The Berry Cos. and Big Cypress Capital have opened Cainhoy Pointe, a gated 110-unit apartment community off Jack Primus Road on Charleston’s Daniel Island. Apartment units range in size from 817 to 1,057 square feet and feature wood-style plank flooring, designer cabinetry, dual marble vanities, walk-in closets and granite countertops. Community amenities include a resident lounge, game room, cyber café, demonstration kitchen, fitness center, yoga studio, business center, community pool, fire pit, walking paths and a dog park. The property is located next to the original phase of Cainhoy Pointe, a 72-unit property originally developed in 2008 as condominiums. Berry and Big Cypress have converted 27 of the units to rental apartments. Cainhoy Pointe is situated near Cainhoy Plantation, a 9,100-acre master-planned development. The design team for Cainhoy Pointe includes general contractor Liberty Solutions, landscape architect John Tarkany Associates of Charleston, architect BB+M Architecture, property manager RAM Partners and leasing agent Sales Inc.
CRG, Gramercy Property Trust Break Ground on 432,000 SF Build-to-Suit Warehouse in Greenville
by John Nelson
GREENVILLE, S.C. — CRG and Gramery Property Trust have broken ground on a 432,000-square-foot build-to-suit warehouse in Greenville for Bausch + Lomb, a manufacturer of eye care products including contact lenses and eye implants. Bausch + Lamb currently operates a manufacturing facility four miles from the new development, which is expandable up to an additional 432,000 square feet. The facility will include 38-foot clear heights, an ESFR sprinkler system, 42 loading docks, one drive-in door, 101 trailer spaces and 94 automobile parking spaces. The design team includes design-build firm Clayco Inc. and architect Forum Studio. Bausch + Lomb is expected to take occupancy beginning in October.
CLEMSON, S.C. — Stonemont Financial Group has begun construction on Plaza One89, a 45-bed student housing community located near Clemson University in South Carolina. The four-story property, which is also home to 6,000 square feet of retail space leased to Amici Italian Café, will offer two- and four-bedroom, fully furnished units with balconies. Community amenities will include a rooftop patio, on-site parking and controlled access. The project is set to open this August.