Investor Duo Unveil Plans for Myrtle Beach SFR Community
Construction is underway at the projects, which ACRE and ARK Residential have agreed to acquire.
Private equity firm ACRE and investment manager ARK Residential have begun preleasing at The Springs at Arcadia, a 150-unit single-family-for-rent community being developed in Myrtle Beach, S.C.
Construction is underway, with the two companies slated to acquire the homes in the master-planned Arcadia community directly from the builder, Atlanta-based Pulte Group. Approximately 30 homes are expected to be delivered each quarter with an estimated completion date in the first quarter of 2024. The SFR homes will be the exclusive rental community within the larger master-planned development. The Springs at Arcadia will be managed by Elmington Property Management.
A Cushman & Wakefield equity, debt and structured finance team, comprising John Alascio, Chuck Kohaut, TJ Sullivan, John Spreitzer and Aaron Graves, arranged $37 million of acquisition financing for the project.
The Springs at Arcadia will have three- and four-bedroom detached homes with various floorplans ranging in size from about 1,500 to 2,300 square feet. The one- and two-story homes will have energy-efficient appliances and fixtures, as well as fully sodded and professionally landscaped front, rear and side lawns and two-car garages. Amenities will include access to the master-planned community’s recreational center, including a clubhouse, pickleball courts and a resort-style pool.
Bret Hewett, vice president of acquisitions for ACRE, said in a prepared statement the firm is excited to plant a flag in Myrtle Beach, a growing market that is seeing strong demand for SFR product. The Springs at Arcadia is part of a larger roll out of SFR communities under ARK’s The Springs brand. Other communities are slated to open throughout the Carolinas, Georgia and Texas. The Springs brand communities will be tenant-focused properties that offer full-service rental housing with a wide array of amenities, including health and wellness offerings.
ARK Residential was formed by Midtown Equities LLC, a privately-held real estate investment and development company that serves as the investment platform for the Cayre family. The firm has a national and international portfolio of more than 14 million square feet in the residential, retail, office, industrial and hospitality sectors. ARK Residential was formed to pursue SFR communities, multifamily, mixed-use assets and land development opportunities in key markets throughout the United States.
S.C. Project Details
David Beare, a co-founder and partner of ARK Residential, said in prepared remarks the property will offer a rare opportunity for those seeking rental options in Myrtle Beach. He noted the property is surrounded by tall pine trees and feels private and secluded, but is close to large employers, supermarkets and retail centers.
Myrtle Beach is a key part of South Carolina’s $24 billion tourism industry and home to Myrtle Waves, one of the largest waterparks on the Eastern seaboard, the Carolina Opry, the Myrtle Beach Boardwalk, Myrtle Beach State Park, Hard Rock Park and more than 90 golf courses. Notable employers in the region include GE Aviation, Lockheed Martin, Honeywell, Boeing, Conway Medical Center, Grand Strand Regional Medical Center and Tidelands Health.