CHARLESTON, SC-CNL Macquarie Global Growth Trust entered into a joint venture with Woodfield Investments to build a 258-unit, class A multifamily residential development on 32 acres in Mount Pleasant, SC. CNL cites strong demand for multifamily housing in Mount Pleasant.
As of March 2011, according to Real Data, there were no units under development there. The joint venture purchased raw land for $3.4 million, and the two companies will work together to develop and lease high-quality units. Construction on the project is scheduled to begin in the third quarter this year.
"We are bullish on early cycle multifamily development,” Paul Ellis, CIO of Macquarie Global Growth, tells GlobeSt.com. “One of the few asset classes where there are positive supply and demand characteristics."
As CNL sees it, the development costs for the project are low compared to pricing for stabilized transactions--and that creates an investment opportunity the firm believes will offer capital appreciate for its shareholders. Ashburn, VA-based apartment development company Woodfield will manage the construction and development. CNL will infuse capital, strategic guidance and oversight.
“We are particularly excited about the opportunity in Charleston because of the economic diversity of the market--tourism, military, medical, aerospace, defense, and shipping,” Ellis says. “Furthermore our site is in the Mt. Pleasant submarket, one of the most prestigious submarkets in Charleston County having experienced 35% population growth since 2000.”
Part of the Charleston metropolitan statistical area, Mount Pleasant has an average annual household income of about $89,000. CNL’s research reveals area residential trends are moving away from home ownership, and there is a limited supply of high-quality, new construction apartment complexes.
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