Charleston investment sales had another banner year in 2017

Investment Recap

According to Real Capital Analytics, Charleston investment sales (over $5 million) for the year 2017 totaled about $1.06 billion, up 9% over 2016, and slightly eclipsing the previous peak of $1.004 billion in 2016. The average price for an office property was $160 per square foot, while flex prices ranged from $84 per square foot up to $254 per square foot.

Multifamily

As in recent years past, local sales were led by multifamily (apartment) sales at $439 million, or approximately 41% of the total sales. There were 21 multifamily communities sold in 2017, totaling 3,921 units. Sale prices ranged from $63,000 per unit to $213,000 per unit, and the average price per unit ended the year at $112,000. The largest multifamily transaction was Simmons Park on Daniel Island at just over $60 million or $204,000 per unit, purchased by Wicker Park Capital out of Savannah.

Office

Office building sales commanded the second-most investment dollars at $217 million, or 21% of the total sales. During 2017, 16 buildings sold totaling 1.39 million square feet. The largest office transaction of 2017 was the Holder Properties’ four-property portfolio, which sold to a JV of Garrison Investment and Charleston-based Cobalt Property Group for approximately $65.5 million or $236 per square foot.

Retail

Shopping center | retail sales, including single tenant assets, totaled $192 million, or approximately 18% of the total sales. Of those sales, $36 million were single tenant assets such as three Walgreens shops and the Wal-Mart Neighborhood Market in Goose Creek. In addition, there were three assets totaling $23 million on King Street, which averaged $547 per square foot. Also, the purchase of most of the Citadel Mall and its JCPenney box totaled $22.1 million or approximately $53 per square foot.

2017 Q4 Investment Report Charleston Colliers

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