Southeast Amenity Wars Extend From Multifamily To Office

Veteran real estate developer and Charleston, SC native John Darby believes the ongoing battle as to which multifamily developer has the best amenities in many Southeast markets, is now taking shape in the office sector as well.

Darby, the president and CEO of The Beach Co., a full-service real estate brokerage, development, management and construction services business, says office tenants are looking for space that is fully-equipped and with all the amenities that will keep their respective workforces productive and happy.

Since Darby took over at the helm of the Charleston-based firm as president in 1999, the company has grown to 300 employees and has experienced significant expansion of its development platform. In the post-recession period, he has strategically repositioned the company’s focus to Class A multi-family mixed-use development. The company now has a presence in 16 cities across the Southeast region with industrial, multifamily, retail and office projects.

Globest.com: Can you identify any trends on the horizon for the mixed-use market in the Southeast?

 Darby: There seems to be an amenity war among multifamily developers, but we’re seeing that trend shift to office as well. Multifamily amenities for employers give businesses a significant edge, so we are currently incorporating some of these aspects to a mixed-use project under development in Charleston’s historic district. The Jasper, one of The Beach Company’s current projects, will offer employee-driven amenities like cafes and restaurants, specialty grocers, boutique health and wellness studios and an abundance of parking—all set in a prime location. On top of that, office tenants will have access to the property’s rooftop pool and garden, corporate wine cellar, and club room with private lounge and demonstration kitchen. Employers are looking for properties that come fully equipped with everything needed to attract talent and to keep employees happy, healthy and productive.

Globest.com: How does The Beach Company differentiate and customize its products for the Southeast market?

 Darby: Understanding the sub-market differences within the Southeast is key in how we plan and market our communities. For example, The Beach Company currently has two multifamily projects under development in Nashville that appeal to two very different audiences and offer distinctly different experiences. One sits on the banks of the Cumberland River in West Nashville and features a modern lodge aesthetic drawing from the wooded settings along the river. This 402-unit community will offer rents substantially lower than downtown, allowing it to tap into a much wider renter pool while offering larger living spaces.

The other project is located nearby in Nashville’s booming SoBro neighborhood. Once filled with empty buildings, this area has been revitalized by the opening of the Music City Center convention center and trendy new restaurants and bars. Residents are a short walk from all the bustling urban-renewal neighborhood has to offer. It also features 5,400 square feet of commercial space that caters to the walkable urban lifestyle many downtown residents are looking for.

Globest.com: The Beach Company is headquartered in and develops in historic Charleston, SC. What are some of the challenges you encounter building in historic areas and how do you overcome them?

 Darby: If you only preserve what’s historic and don’t develop new projects, the city starts to look like a movie set—frozen in time. Meanwhile, we have more than 40 people moving to Charleston every day, who are driving, working and need a place to live. Developers must be willing to mix the modern with the historic with projects that complement its surroundings. A blend of historic and contemporary architecture helps a region retains its roots, but also adds value by embracing the needs of the modern resident.

A major challenge to developers in historic areas is opposition groups. Charleston has numerous, active historic preservation groups whose members are passionate, well-educated and very well-funded. As such, they are a force to be reckoned with for any developer working there as they can make it difficult to do business, delaying the permitting process and potentially tying up projects in the courts.

It’s vital that all organizations involved understand the development process so they can provide constructive feedback and reach a consensus—at times, this means meeting with and educating involved parties. Most importantly, it means compromise, and not just among the preservation groups.

As a family-owned business developing in our hometown, we take this feedback seriously and continuously benefit from this type of discourse. Just as we focus on respecting a city’s historic legacy, preservation groups must be open to embracing new development, both residential and commercial.

It’s a delicate balance to strike, but The Beach Company is always striving to find the best way to preserve the historic beauty of a city while looking forward to its vibrant future.