Purchase follows recent acquisition of Sweetgrass Landing Apartments in Mount Pleasant for $55.5 million by Baltimore-based real estate investment and management company
BALTIMORE, MD (April 20, 2022) – Continental Realty Corporation (CRC), a Baltimore-based real estate investment and management company, has purchased its sixth asset in the greater Charleston, South Carolina metropolitan area with the $17 million acquisition of Sweetgrass Corner, a nearly 90,000 square foot neighborhood shopping center located at 1909 N Highway 17 in Mount Pleasant. CRC acquired this asset in an off-market transaction from New Market Properties, a subsidiary of Preferred Apartment Communities, Inc. (NYSE:APTS). The center is adjacent to Mount Pleasant Towne Centre, a 510,000 square foot regional shopping venue acquired by CRC in 2020.
Sweetgrass Corner was purchased on behalf of Continental Realty Fund V, L.P., and a co-investment vehicle related to Fund V, both managed by CRC. Fund V is a $210.8 million private equity fund focused on acquiring value-add retail and multifamily properties in the Mid-Atlantic and Southeast regions. This represents the tenth retail asset acquired by Fund V, following last year’s acquisition of South Plains Crossing, a 144,241 square foot retail center in Lubbock, Texas and it closely follows Fund V’s purchase, earlier this year, of Sweetgrass Landing Apartments for $55.5 million. Since its inception, Fund V has acquired 14 retail and multifamily properties.
In addition to Mount Pleasant Towne Centre and Sweetgrass Landing Apartments, Fund V owns The Six Apartments, a 92-unit community located at 2170 Snyder Circle in Mount Pleasant, which CRC acquired in January. CRC Funds now own six assets in the greater Charleston area, including Central Island Square, a mixed-use project within the 4,000-acre master-planned community of Daniel Island and consisting of 313 multifamily units and nearly 30,000 square feet of retail space; and West Ashley Shoppes, a nearly 140,000 square foot neighborhood retail center near downtown Charleston.
Delivered in 1999 and situated on approximately 10 acres between N Highway 17 and Hungry Neck Boulevard at the intersection of Isle of Palms Connector, Sweetgrass Corner features 13 tenants offering a mix of medical and personal care services, as well as sit-down and fast-casual restaurants. The site was formerly anchored by a BI-LO supermarket which was shuttered as part of a strategic decision by its parent company in 2019.
Nearly 45,000 vehicles pass the site on a daily basis via US Highway 17, and the center is located on a strategic corridor connecting Mount Pleasant to Charleston, with direct links to Interstate 526 serving the nearby towns of Daniel Island, North Charleston and West Ashley. Nearly 60,000 consumers, with an average household income exceeding $125,000, reside within a three-mile radius of Sweetgrass Corner.
Strategic investment
“Sweetgrass Corner presents a rare opportunity to own a large tract of commercial real estate in a rapidly expanding submarket where we continue to invest,” stated Josh Dinstein, Senior Vice President, Acquisitions for Continental Realty Corporation. “Through our long-term relationship with the seller built over many years, we were able to structure a completely off-market transaction to acquire the center which is directly adjacent to our highly successful Mount Pleasant Towne Centre. We perceive an extremely high barrier to entry for new retail projects, which only increases the value and attractiveness of strong and strategically-located shopping centers. Our team expects to create value by upgrading the center over time and implementing a more cost-efficient property management strategy.”
Mount Pleasant trade expected to sustain continued long-term growth
The Mount Pleasant area median household income is expected to increase by 13% over the next five years to more than $113,000.The area’s population grew 33% between 2010 and 2020 and home values rose by more than 75% over the past decade. Sweetgrass Corner is located within the Charleston Metropolitan Statistical Area (MSA), recognized as the fourth-largest municipality in South Carolina.
Major employment centers of Charleston and North Charleston include Joint Base Charleston (36,000 employees), Medical University of South Carolina (13,000 employees), The Boeing Company (8,200 employees) and the Berkeley County School District (approximately 7,000 employees). Nearly seven million tourists visit the area annually, injecting more than $7 billion into the local economy.
“We remain interested in real estate investments within the greater Charleston and Mount Pleasant region based on their enduring economic fundamentals, led by the continued influx of new businesses and residents into the area, an attractive climate and lifestyle, as well as favorable data and trends that indicate the continuation of this momentum,” explained JM Schapiro, CEO of Continental Realty Corporation. “Each of our retail, multifamily and mixed-use properties in this area has performed above expectations and we intend to aggressively target new assets that present value-add opportunities and match the exacting criteria in our acquisition due diligence. Sweetgrass Corner adds to our critical mass of properties in South Carolina, and given its irreplaceable location, we intend to thoughtfully execute a value-add strategy and deliver solid risk-adjusted returns to our investors.”
Headquartered in Baltimore and founded in 1960, Continental Realty Corporation is a full-service commercial real estate and investment company focused on acquiring and operating retail and multifamily properties. The privately-held firm owns and manages a diversified portfolio of retail centers consisting of more than five million square feet of commercial space and over 9,000 apartment homes across ten states, with a portfolio value exceeding $3 billion. For additional information, visit www.crcrealty.com.
