RALEIGH, NC-A private investor group that includes Stratford Land and Myrtle Beach Development Group, has acquired 15 Coastal Carolina residential and commercial real estate assets in a joint venture deal. Terms of the all-cash deal were no disclosed.
In the Hilton Head area, the joint venture acquired Hilton Head Lakes, a fully entitled, 2700-acre master-planned development halfway between Savannah and Hilton Head, and Traditions, a 1,900-acre, fully entitled, master-planned development with a Tommy Fazio championship golf course in play.
In the Myrtle Beach area, the companies acquired Wild Wing Plantation, a 1,000-acre development with a 27-hole golf course community; Sandridge, a 1,600-acre undeveloped parcel of land bordering the Intracoastal Waterway in North Myrtle Beach; Grey Plantation Parcel, one of the last undeveloped parcels in the 8,000-acre master planned Carolina Forest development; and Windsor Plantation, a 300-lot development located seven minutes from the ocean with active home building underway.
“We handpicked these properties,” Ralph Teal, managing member of the joint venture, tells GlobeSt.com. “These are A locations and most of them are active to some degree. Some have builders in place who are taking down lots every week. They offer immediate cash flow and they will also be among the first properties to pick up as the markets get stronger.”
Mark MacDonald, managing director for Stratford Land’s Virginia, the Carolinas and Washington, D.C. operations, tells GlobeSt.com the major assets in the portfolio come with a tremendous amount of infrastructure already in place, including active lot sales, golf courses in play, streets, utilities, and recreational amenities.
“The discounted values at which we’re acquiring these properties—often under 25 cents on the dollar—are even more appealing when you consider how much infrastructure is in place and how market ready these assets are,” MacDonald says. “Also, several of the major assets were already under the control of our JV partners so we’re really building on their existing portfolio.”
The partners have not formally outlined plans for the portfolio. But Teal says the group will take advantage of its reset pricing and maintain sales momentum where it exists. The group may also reposition properties that aren’t quite as active. This acquisition is a bet on the future.
“We think it’s largely a matter of timing the recovery and we’re patient investors,” MacDonald says. “This Carolina coastal area is very hot with retirees and we believe the market will come back strong as the economy stabilizes.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
