JV Receives $22M in Financing for SC Property
- Oct 18, 2019
Hunt Real Estate Capital has provided a $21.7 million loan to a joint venture of Drucker + Falk and Eastham Capital to purchase Litchfield Oaks, a 192-unit property in Pawleys Island, S.C. The Freddie Mac conventional multifamily loan features a fixed-rate, seven-year term that will amortize over 30 years.
Located at 5 Ashcraft Circle, Litchfield Oaks was built in 1999 as a three-story building on a 20-acre site. The property offers 18 one-bedroom, 144 two-bedroom, and 30 three-bedroom units. According to Yardi Matrix data, Litchfield Oaks is 93.8 percent occupied, with an average rent of $1,195. The previous owner, Graycliff Capital, had acquired the community in November 2013 from Aspen Square Management for $16.6 million, Yardi Matrix data shows.
Drucker + Falk and Eastham Capital plan to invest $1 million in much-needed renovations. In a statement, Hunt Real Estate Capital Director James Kelly said that the renovations will fully update the unit interiors with high-end finishes including new kitchen backsplashes, bathroom lighting, faucet fixtures, kitchen and bathroom countertops and cabinets, and installation of washer and dryer in all units. The renovations will also update the lighting, doorknobs and ceiling fans in all common areas as well as renovate the clubhouse, Kelly added.
John Beam, Hunt’s managing director, said that the improvements and amenities will help serve the medical, manufacturing and retirement communities that are found nearby Litchfield Oaks. Beam added that the borrowers chose the property because of its strategic location that saw high demand and a scarcity of rental units.
Change in Charleston
But that’s set to change as the nearby South Carolina state capital Charleston is seeing more development activity due to high demand. According to a recent ranking by Yardi Matrix, the city was the top spot for multifamily completions.
Due to its economic growth from its cargo and automotive industries, Charleston saw a spike in multifamily demand. In the first quarter of 2019, the city saw 1,890 units come online and will likely see 3,650 units come online throughout the entirety of 2019. While the 2019 figure of deliveries is 18.5 percent less than 2018’s 4,475 units delivered, Charleston is still leading over other U.S. markets.