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OFFERING MEMORANDUM
567 KING STREET | OPPORTUNITY ZONECHARLESTON, SOUTH CAROLINA
DEAL ROOM
Confidentiality and Disclaimer
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
Non-Endorsement Notice
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.
ACTIVITY ID: ZAA0450224
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PRICING & FINANCIAL ANALYSIS
567 KING STREET
CHARLESTON, SOUTH CAROLINA
DEMOGRAPHIC SUMMARY
1 MILE RADIUS
2018 POPULATION 24,078
AVERAGE HH INCOME $61,714
OFFERING SUMMARY
PRICE $3,400,000
PRICE/SF $703.64
CLICK HERE FOR COMPLETE DEMOGRAPHIC REPORT
PROPERTY DESCRIPTION
GROSS LEASABLE AREA (TOTAL)
GROSS LEASABLE AREA (RETAIL) GROSS LEASABLE AREA (VRBO)
4,832 SF
1,915 SF2,917 SF
YEAR BUILT/RENOVATED 1900/2016
ZONING GENERAL BUSINESS (GB)
TYPE OF OWNERSHIP FEE SIMPLE
LOT SIZE (TOTAL) 0.07 ACRES
OPPORTUNITY ZONE YES
ACCOMMODATIONS OVERLAY YES
SHORT TERM RENTALS OVERLAY YES
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PROPERTY DESCRIPTION
PROPERTY OVERVIEW• Urban Mixed-Use Investment | Infill Location | Charleston, SC• Located in Short Term Rental Overlay and Accommodations Overlay• King Street | World Famous Tourist Destination | 7.3 Million Visitors in 2018• Two Story Building | Street Retail and Residential • Federal Opportunity Zone | Upper King Street• Income Producing Asset | Established Short Term Rental Units • Value Add Potential | Owner User Potential | Available Retail
Marcus & Millichap is pleased to present to qualified investors the opportunity to acquire a 4,832-SF mixed use property on historic King Street in downtown Charleston, SC. The property consists of 1,915-SF of street level retail space (currently leased to Ice & Pan) and 2,917-SF of residential space on the first and second floors. The residential space is currently operating as short term rental units (See Airbnb pictures and links below). The upstairs rental unit consists of 4 bedrooms and 4 bathrooms (10 guests maximum), ideal for large parties and corporate rentals, and the downstairs unit consists of 1 bedroom and 1 bathroom (4 guests maximum). The units offer high end finishes, modern décor, and an unbeatable King Street location. The current owners have seen steady increases in revenue each year since converting the residential portion of the building to short term rental units. (Contact broker for financial details)
The property is zoned General Business (GB) and is located within the highly desirable Accommodations Overlay as well as the Commercial Short-Term Rental (STR) Overlay (see details on page 9). The STR Overlay is a small area that includes Upper King Street and the Cannonborough-Elliotborough neighborhood which links King Street to the Medical District and the Medical University of South Carolina, just north of the College of Charleston campus.
This excellent location downtown is among a highly sought-after group of properties and one of few properties on King Street that is commercially zoned within both the Short-Term Rental Overlay and the Accommodations Overlay. Which means you can legally have short term rental units (VRBO/Airbnb). In addition to this zoning, the property is located in a Federal Opportunity Zone. (See pages 8 and 9)
This area of Upper King Street and the Upper Peninsula is an area of hyper growth and development. The proximity to The College of Charleston, the Medical University of South Carolina, the Citadel, the Port of Charleston, Museum Mile and world class shopping and dining is unprecedented. An investor can immediately benefit from a trophy location on King Street with established short-term rental units and a recently updated building in the heart of downtown Charleston. The current owners have invested over $300,000 in property improvements since 2016. (see page 7 for details).
*Contact broker for information on the retail space.
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PROPERTY DESCRIPTION
SUBJECT PROPERTY
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FACING SOUTH
AERIAL LEGEND
1 SKYGARDEN (STUDENT HOUSING)
2 HOMEWOOD SUITES (139 ROOMS)
3 MY HOUSE ON MEETING (STUDENT HOUSING)
4 THE CHARLESTON MUSEUM
5 CHARLESTON VISITOR CENTER
6 VISITOR CENTER PARKINGGARAGE
7 CHARLESTON SCHOOL OF LAW
8 DEWBERRY HOTEL
9 HOTEL BENNETT
10 TD ARENA
11 PORT OF CHARLESTON
12 CRUISE SHIP TERMINAL
13 HISTORIC CHARLESTON CITY MARKET
14 COLLEGE OF CHARLESTON (12,000+ STUDENTS)
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PROPERTY DESCRIPTION
8
PROPERTY DESCRIPTION
GROUND FLOOR RETAIL | ICE & PAN
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PROPERTY DESCRIPTION
ONE BEDROOM VRBOCLICK HERE: AIRBNB WEBSITE
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PROPERTY DESCRIPTION
FOUR BEDROOM VRBOCLICK HERE: AIRBNB WEBSITE
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CHARLESTONSOUTH CAROLINA
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MARKET OVERVIEW
MARKET OVERVIEWCHARLESTON, SOUTH CAROLINA
Located along the Atlantic seaboard, the Charleston metro encompasses Charleston, Berkeley and Dorchester counties in southeastern South Carolina. A favorable business climate is helping draw companies and workers to the region. The metro population has grown by roughly 275,000 people since 2000 and the market is forecast to receive another 64,000 people through 2022. Charleston is the largest city in the metro with 134,200 residents, followed by North Charleston with 109,300.
NORTH CHARLESTON
MT. PLEASANT
JOHNS ISLAND MORRIS ISLAND
PORT ACITVITY
LARGEST CONTAINER SEAPORTS ON EAST COAST
TOURISM INDUSTRY
7.3+ MILLION VISITORS$8 BILLION
ECONOMIC IMPACT
KEY INDUSTRIES
AEROSPACE AUTOMOTIVE IT & DEFENSE
ENERGYLIFE SCIENCES
MAJOR EMPLOYERS
13
MARKET OVERVIEW
NORTH CHARLESTON
MT. PLEASANT
JOHNS ISLAND MORRIS ISLAND
NEWS AND NEARYBY DEVELOPMENTS
COURIER SQUARE
Courier Square, Evening Post Industries’ redevelopment on Upper King Street, continues the expansion of Charleston’s urban fabric north from the city’s already bustling Broad Street area over three phases of construction. The first phase is composed of two distinct buildings side by side: an office building on Meeting Street and a residential building on Columbus Street overlooking a greenway serving as a city park and a passage to downtown for pedestrians and cyclists.
The office building, headquarters for the property developer Greystar, continues Charleston’s classical tradition of nineteenth-century commercial architecture, using Greek Revival details to mark the five-story structure that provides 70,000 square feet of office space. At the ground level, shopfronts set into rusticated stone facades activate Meeting Street. The upper floors are stucco with Ionic columns; the metal-paneled fifth-floor penthouse offers views out to the Cooper River to the east.
Click HERE for more information.
MORRIS SOKOL FURNITURE
For nearly a century, bedding and other furnishings once beckoned customers into the former Morris Sokol Furniture showroom in downtown Charleston.
Now a plan is in the works to put people in beds for overnight stays and residential use in the large, vacant building on upper King Street.
Initial plans call for a 50-room boutique hotel, 20 condominiums, street-level retail and structured parking in a rear warehouse, according to Mike Shuler, one of the owners in the partnership that bought the nearly block-long structure in 2016 for $22.5 million. A project name has not been announced.
Work on a first phase of redevelopment could begin by next year in the two- and three-story store that closed in 2015 after 94 years, most of them at that location.
Click HERE for full article (Post & Courier).
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MARKET OVERVIEW
ECONOMIC DRIVERS
COLLEGE OF CHARLESTON
The College of Charleston is a public sea-grand and space-grant university located in Charleston, South Carolina. The school was founded in 1770 and chartered in 1785 making it the oldest college in South Carolina. There are more than 10,000 undergraduates and approximately 1,000 graduate students and more than 500 teacher-scholars. The College of Charleston offers 61 majors, 78 minors, 24 master’s degree programs, and 10 graduate-level certificate programs.
PORT OF CHARLESTON
The Port of Charleston continues to be the fastest growing major port in the United States. The Port has five public terminals owned and operated by the South Carolina Ports Authority. These facilities handle containers, motor vehicles, and other rolling stock, non-containerized goods and project cargo, as well as Charleston’s cruise ship operation. From 2011-2017, container volume is up 58% and the total volume in 2017 was 2.2 million TEU, a new record high for container volume. The State of South Carolina is investing $300 million to make Charleston the deepest port on the US East Coast in 2020.
MEDICAL UNIVERSITY OF SOUTH CAROLINA
The Medical University of South Carolina (MUSC) is one of the nation’s top academic health science centers, with a 700-bed medical center and six colleges. Its campus is located on more than 80 acres in the city of Charleston, with an overall population of about 13,000 clinicians, faculty, staff and students. Nearly 3,000 students in six colleges (Dental Medicine, Graduate Studies, Health Professions, Medicine, Nursing, and Pharmacy) study for degrees at the baccalaureate, master’s, doctoral, and other professional levels.
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DEMOGRAPHIC ANALYSIS
0.5 MILE 1 MILE 1.5 MILE
2010 HOUSEHOLDS 3,427 9,044 12,577
2018 HOUSEHOLDS 3,741 10,003 13,644
2023 HOUSEHOLDS 3,735 10,077 13,733
0.5 MILE 1 MILE 1.5 MILE
2010 OWNER OCCUPIED HOUSING UNITS 22.1% 27.1% 34.5%
2010 RENTER OCCUPIED HOUSING UNITS 77.9% 72.9% 65.5%
2018 OWNER OCCUPIED HOUSING UNITS 21.8% 26.7% 33.8%
2018 RENTER OCCUPIED HOUSING UNITS 78.2% 73.3% 66.2%
2023 OWNER OCCUPIED HOUSING UNITS 22.0% 26.8% 33.8%
2023 RENTER OCCUPIED HOUSING UNITS 78.0% 73.2% 66.2%
0.5 MILE 1 MILE 1.5 MILE
2010 POPULATION 9,061 22,182 31,799
2018 POPULATION 9,734 24,078 34,021
2023 POPULATION 9,616 23,907 33,772
0.5 MILE 1 MILE 1.5 MILE
$ 0 - $ 14,999 31.0% 31.9% 28.0%
$ 15,000 - $24,999 12.1% 11.4% 10.5%
$ 25,000 - $34,999 9.9% 9.1% 8.4%
$ 35,000 - $49,999 13.2% 10.7% 10.6%
$ 50,000 - $74,999 12.3% 12.3% 12.6%
$ 75,000 - $99,999 6.8% 7.0% 7.3%
$100,000 - $124,999 6.4% 6.1% 6.7%
$125,000 - $149,999 4.1% 3.3% 3.9%
$150,000 - $200,000 2.6% 3.4% 4.4%
$200,000 to $249,999 0.8% 1.8% 2.8%
$250,000 + 0.9% 3.0% 4.9%
MEDIAN HH INCOME $31,767 $32,474 $38,930
PER CAPITA INCOME $21,289 $27,124 $32,579
AVERAGE HH INCOME $50,317 $61,714 $77,089
CLICK HERE FOR COMPLETE DEMOGRAPHIC REPORT
FOR MORE INFORMATION:ANDREW MARGULIES First Vice President | InvestmentsSenior Director, National Retail GroupTel: (312) [email protected] License: 264059IL License: 475147606
HARRISON CREASON (LEAD)Senior Associate | InvestmentsNational Retail GroupTel: (843) [email protected] License: 91161