Madison Lines Up Capital for South Carolina SFR Project
Charleston’s build-to-rent inventory is set to expand by 169 units.
Madison Capital Group has raised $16 million in preferred equity for the development of a 169-unit luxury single-family rental project in Charleston, S.C. BenCo Construction will serve as general contractor.
Units will feature quartz countertops while the community amenities are slated to include a clubhouse, gym, swimming pool and grilling stations, as well as a fire pit.
Madison entered the build-for-rent market in March. The company planned to build or acquire attached townhomes and cottage-style homes in growing Sun Belt markets, according to prepared remarks by Madison CEO Ryan Hanks. At the time, Madison’s pipeline consisted of roughly 900 single-family units in markets such as Charlotte, Charleston, Hilton Head and Florida’s Space Coast.
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Located at 1380 Bees Ferry Road, the project is about 13 miles northwest of downtown Charleston, while U.S. Route 17 is more than 1 mile away. Several retail options and quick-service restaurants are 2 miles away.
Charleston ranked first as the top U.S. vacation destination, according to Travel + Leisure. The city’s millions of annual visitors generate a significant economic boost—more than $8 billion. Additionally, the metro is estimated to see 35,000 new jobs over the next 5 years.
Charleston’s sizable SFR pipeline
Metro Charleston’s single-family rental comprised more than 2,500 units under construction as of October, according to Yardi Matrix data. The amount of build-to-rent units underway places the metro on par with other Sun Belt markets such as Orlando, Fla. (2,696 units).
Last year, developers brought online more than 1,150 single-family rental units across nine Charleston communities, the data provider reveals. Should the market climate hold, an estimated 1,147 units are expected to debut this year.
The advertised asking rates for the single-family rental sector in Charleston witnessed a 0.5 percent growth year-over-year as of August, after three consecutive months of build-to-rent rate contraction, the same source shows.