Woodfield Buys 32 Acres for 258-Unit Apartment Project in Suburban Charleston, S.C.
- Jun 03, 2011
Mt. Pleasant, S.C.–Woodfield Investments LLC is well aware that there is a gap between supply and demand in the apartment market in Mt. Pleasant, S.C., a highly sought-after Charleston suburb, and the company has made a major move toward filling the void. Woodfield partnered with CNL Macquarie Global Growth Trust Inc. on the purchase of a 32-acre parcel that will soon become the site of the 258-residence Woodfield Long Point apartment property.
Woodfield and CNL Macquarie acquired the land for the project from Redus SC Land LLC for just over $3.4 million. As per terms of the joint venture agreement, Woodfield will spearhead construction and development of the multifamily community, while CNL Macquarie will be responsible for supplying strategic guidance and oversight, as well as capital. The company made an equity investment of approximately $6.8 million for a 95 percent stake in the partnership. As for additional project financing, Wells Fargo Bank N.A. has provided a $21.4 million construction loan.
When all is said and done, Woodfield Long Point will not only offer Class A residential units to a hungry rental market, it will provide such amenities as a 7,300-square-foot clubhouse encompassing a state-of-the-art fitness facility, yoga room, business office and high-tech media center. Given the state of the apartment market in Mt. Pleasant, Woodfield Long Point will not want for rental applicants.
“Mt. Pleasant is the most desirable area in metropolitan Charleston,” Andrea Pevey, multifamily market analyst with apartment research firm Real Data, tells MHN. “It has that community feel yet there’s a lot of new development; it’s definitely growing.” However, those coveting new apartment accommodations in the area have to clamor for the very few opportunities that exist. “Demand is high mainly because there hasn’t been much development lately.” According to Real Data statistics, during the six-month period ending in February of this year, only one apartment community containing just 60 units in Mt. Pleasant reached completion.
There is a dearth of supply in Mt. Pleasant and in any number of cities across the country for what have become obvious reasons. Practically every multifamily developer halted, or at least curtailed, building activity once the housing market crashed, the credit market froze and the recession took hold in 2008. However, the apartment sector is leading the commercial real estate market’s comeback now that job growth is on the rise, consumer confidence is returning and the economy appears to be on the mend. Alas, many young adults who did not create new households and people who doubled-up in residences due to financial challenges are now primed to rent. Also, Pevey adds, “The housing market is still so low that people are more intrigued by renting than buying.”
The Housing Studio is behind the design of Woodfield Long Point, and CF Evans has been tapped to serve as general contractor for the project. Upon completion of the development, a CNL Macquarie subsidiary will manage the property. The groundbreaking is expected to occur shortly, according to Woodfield.