Continental Realty Corporation (CRC), a Baltimore-based real estate investment and management company, has purchased its fifth asset in the greater Charleston, South Carolina metropolitan area with the $55.5 million acquisition of Sweetgrass Landing Apartments, located at 1100 Legends Club Drive in Mount Pleasant. Developed in 2001 and formerly owned by Chaucer Creek Capital, the two-story, 14-building community was 96% leased at the time of this off-market transaction. CRC acquired 175 of the 200 apartment units, with the remaining 25 consisting of privately-owned condominiums. Tai Cohen of Cushman & Wakefield represented the seller.
The asset was purchased on behalf of Continental Realty Fund V, L.P., 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 sixth multifamily community acquired by the Fund, following last month’s purchase of The Six Apartments, a 92-unit community located at 2170 Snyder Circle in Mount Pleasant. The Six Apartments is located four miles to the south of Sweetgrass Landing Apartments on Highway 17.
Other Charleston-area assets owned and managed by CRC include Mount Pleasant Towne Centre, a 510,000 square foot open-air regional shopping venue in Mount Pleasant, and 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. Both assets were purchased in 2020. CRC also owns and manages West Ashley Shoppes, a nearly 140,000 square foot neighborhood retail center in Charleston.
1,174 square foot average unit size represents most expansive in local submarket
Constructed as condominiums in 2001, Sweetgrass Landing Apartments is situated directly adjacent to North Highway 17. It consists of one, two and three-bedroom floorplans ranging from 787 to 1,596 square feet of space, with an average unit size of 1,174 square feet the community. The community’s floorplans are the largest in the greater Mount Pleasant submarket. Ten custom floor plans are available, with a portion of the units featuring attached garages that allow direct entry into the homes. Standard features include open kitchen areas with a dining room, extra-large kitchen sinks, tile backsplashes, walk-in closets, stainless steel appliances, master bedrooms that can accommodate a king-sized bed, in-unit washers and dryers, garden tubs, screened patios and private balconies.
“Sweetgrass Landing has an impressive track record of performance and, after the completion of an extensive renovation and upgrade strategy, we confidently believe we can significantly elevate this asset to best-in-class status,” stated Ari Abramson, Continental Realty Corporation’s Vice President of Acquisitions. “This off-market transaction was nurtured and successfully executed due to the deep relationships we have formed in the local real estate community, and we plan to seek additional opportunistic acquisitions as we grow our portfolio.”
Resident amenity package features include an outdoor swimming pool with fountain and sundeck, a clubhouse with fireplace, a fitness center, an automotive care center, and a pet park. The community has a card-access gateway and is beautifully landscaped throughout, including tree-lined driveways.
Critical mass of assets in greater Charleston area provides portfolio-wide efficiencies
“Given its strategic location, proximity to retail amenities and placement within an economically-thriving submarket, Sweetgrass Landing Apartments represents an excellent addition to our expanding multifamily portfolio in the greater Charleston area,” stated JM Schapiro, CEO of Continental Realty Corporation. “We are excited to operate Sweetgrass Landing and The Six as a portfolio and leverage our operating efficiencies in the Mount Pleasant submarket. Along with our retail holdings, we have successfully created economies of scale to realize cost efficiencies and synergies. We have proven our ability to execute on similar value-add repositioning programs, and our team intends to carry out that strategy again with Sweetgrass Landing.”
New owner intends to invest $5 million in capital improvement strategy
During the initial years of its ownership, CRC intends to execute an extensive capital improvement strategy, valued at approximately $5 million, that will include improving the units’ interiors and the leasing office. Efforts will focus on replacing and upgrading the flooring, installing granite countertops and undermount sinks in the kitchen and bathroom areas, and adding a modern appliance and technology package.
Sustained vibrancy and growth of Mount Pleasant trade area
Sweetgrass Landing Apartments is directly adjacent to Roper St. Francis Mount Pleasant Hospital, which continues to attract employees relocating to the Mount Pleasant area. Nearby amenities include Laurel Hill County Park, Charleston National Golf Club, Isle of Palms Beach, Market at Oakland and Six Mile Marketplace. Downtown Charleston can be accessed in 20 minutes and Charleston International Airport is approximately 30 miles away.
The Mount Pleasant area’s 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 Landing Apartments 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.