Charleston Regional Sales On Pace To Beat The 2012 Record

Charleston’s investment sales market is on pace to likely exceed its 2012 sales volume record of $458 million. Year-to-date sales (and a few pending contracts) in Charleston totaled $277 million in 34 transactions, double the 14 transactions totaling $139 million seen at mid-year 2012. Sales this year are on pace to reach over $550 million, a 20% increase over last year. Office buildings are leading the way, followed by multi-family (apartments), hotels, and smaller commercial buildings. Notably absent from the list of transactions was a medical office building and the continued absence of any large shopping center or warehouse.

The increased number of transactions at mid-year shows confirmed confidence in the Charleston market from both local and national investors. A significant number of buyers and funds and institutions from New York, Washington, Miami, San Diego, and Texas have invested in the region. They joined institutional capital such as USAA, JP Morgan Investment Management, Prudential, and MetLife that have made sizable investments in this city and believe in its culture, its quality of life, and its economic engine. Charleston is a great place to live, work and play as evidenced by the area’s quality of life, cost of living and job creation.

Office

Compared to just the single sale of a small office building in the first half of 2012, this category leads all property types with $79 million sold in the first half of the year alone:

  • 3950 Faber Place Drive, anchored by a long-term GSA lease at above market rent, sold at an astounding $384/SF to a Washington, D.C. based investment firm that specializes in buildings leased to the federal government;
  • Confirming that high water-mark price was the sale of the new 25 Calhoun Street asset downtown at $370/SF; purchased by a fund that included local investors and overseas capital;
  • Building I at The Offices at Belle Hall in Mt. Pleasant sold at $226/SF to a Texas-based investor;
  • Bridgeview, a portfolio sale consisting of three single-story buildings approximately 60% occupied in North Charleston, sold at about $71/SF to a local investor;
  • Bowman Center sold in May at $119/SF at 50% occupancy; and
  • Two unrelated buildings on Johnnie Dodds Boulevard in Mt. Pleasant sold in February – one at $89/SF and 50% occupied and one building at $174/SF on a short-term lease to a high credit tenant.

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