Sun News - Toward the end of 2010, residential lot sales along the Grand Strand quietly started to pick up, driven by low prices, a shift that may slowly help improve what has been a struggling home building industry, according to area Realtors and builders. Residential lot sales increased almost 43 percent in 2010, up from 406 sales in 2009 to 580 last year, according a local company that tracks the real estate market. Prices on lots have dropped dramatically, and that has allowed some buyers the ability to build a new home they may not have been able to afford several years ago. The increase in lot sales may boost the home building industry as construction gets under way on neighborhoods where there has been little activity on vacant land. Those partially empty communities may start improving and the local economy will benefit from the added construction activity, according to area Realtors and builders.
The former president of the Horry Georgetown Home Builders Association, said that the real estate market and the home building industry have changed and that 2011 should bring improvements. "I think everything has been reset," he said. "We're now in the new normal. I think things have leveled off, we've seen the absolute worst." The activity in the market is good news, but added that there is still a lot of inventory on the market. The absorption rate for residential lots in Horry and Georgetown counties is 59.01, which means there is a roughly 59-month or nearly five-year supply of lots on the market. The owner of a local real estate franchise office, said lot sales picked up in 2010 for his company with a majority of the buyers he sold to planning to build on the property. "Someone can buy out there and build and their price per square foot is equal to or less than the resales," he said. The pick-up in lot sales follows the downturn that brought the sales almost to a standstill. A year ago this wasn't even a conversation," he said. "The prices of these lots have come down so much that it starts to make sense." Many of the lot owners who are selling, or losing the properties in foreclosure, bought the land as an investment or planned to move from up North but plans changed. Some of those owners have had to take a "massive" loss, and the buyers are sometimes getting lots for the cost of putting in the sewer, water and electric lines, he said. The median sales price for a residential lot on the Grand Strand in 2010 was $44,900, which was down from $57,000 in 2009, and down about 55 percent from the peak in 2006.
Another local broker said the lot sales, some of which are in what were nearly dormant subdivisions, are good for the real estate market as a whole. "You've got to have sticks going up to create activity, and it's working," she said. "I think you're going to see more new construction than the past two years, but not massive amounts." Builders along the Grand Strand have mostly struggled as business dropped with the collapse of the real estate market. Despite what some describe as an improvement in consumer attitudes, the number of building permits continued to drop last year. The number of building permits issued by Horry County was down slightly, dropping from 1,471 in 2009 to 1,440 in 2010, according to Market Opportunity Research Enterprises, a company that tracks the real estate market. In Georgetown County, the number of permits rose from 119 in 2009 to 132 last year. Brunswick County, N.C., permits dropped to 779 in 2010 from 852 in 2009, according to MORE. Builders are having to find ways to get business, and the dropping land prices, which allow them to offer the finished home at a lower price, are helping.
Lot sales are a good indication but it's unlikely that every one of those sales will translate into an immediate build. Some buyers are seeing good values on lot prices and are buying with the intention of building a year or two from now, he said. The low prices on lots have helped some potential customers, though. "For a long time over the last several years a lot of [lot prices] got to a point that they were squeezing people out of the marketplace, and what's kind of happened is that prices have been reset and readjusted," he said. "That has given some people an opportunity that may have been priced out." He is optimistic about the year ahead, and the number of inquiries to his company is up about 15 percent so far in January over what it was last year. He said there may be some more challenges ahead, including with financing, but that the industry can only improve. Financing does still present a challenge to some buyers, but Coyne said banks' tightening of restrictions makes sense. "Without a doubt it's been challenging," he said, adding "I feel like some of that has been overly restrictive, but it will find its level too."
Another improvement, said the owner of a local home building company, is that cash purchasers have more confidence and are comfortable spending their money. Despite some financing challenges, more lenders are offering financing on new homes than were at this time last year, he said. He has 11 homes under way, and said the company's philosophy is that prices have to meet the market, because that is what buyers want. He said he builds new custom homes that compete with or beat the prices of existing homes, even those in foreclosure. "When the market turns you have to find product that will sell, that the market will bear." The company has been able to do that by keeping margins low and using a volume-based mentality, negotiating contracts with suppliers and subcontractors in advance in bulk, to be able to provide lower prices. "Lot prices have depressed and now somebody can buy those lots, have a warranty and can have exactly what they want," he said.
That ability to customize a new home is a draw to many buyers, said a real estate analyst with the Coastal Carolinas Association of Realtors. "Most people if they had the option of a new and a resale home and they were the same price, people would choose the new home," he said. The builder building in the right price range is most likely going to do well, especially if that price is competitive with prices of an existing house in the same neighborhood. Typically new construction helps boost prices in a neighborhood or subdivision, and while in the short-term current construction may not do that, the activity should benefit the community, he said. Some communities homeowners' associations have started working with Realtors and builders to resolve potential issues and try to get lots sold and houses built. "The market is recovering. Building is growing here," he said. "Everybody's starting to think towards the future and doing what everybody has to do to get these products going."
Thursday
Familiar face buys The Market Common in Myrtle Beach
Sun News - It is still unclear what changes may take place at The Market Common, but the new owners aren't strangers to the property; the parent company of the buyer was also the parent company of the previous owner. BEI-Beach LLC, which bought the property last week, is a subsidiary of Leucadia National Corp. LUK-MB1 LLC, which owned The Market Common property before it failed to make payments and JP Morgan Chase foreclosed on the property, also was a subsidiary of Leucadia. LUK-MB1 was run by McCaffery Interests Inc., but Leucadia was the financial partner. BEI-Beach LLC paid $19,178,122 for the property, according to Horry County property records. A spokesman for JP Morgan Chase said the company does not comment on specific client relationships. What changes might be made or how the purchase will affect businesses or shoppers is unclear because Leucadia declined to comment about the purchase. Hatton Gravely, a spokeswoman for The Market Common, said she was not authorized to comment on the sale. JP Morgan Chase foreclosed on The Market Common in May after LUK-MB1 failed to make payments. LUK-MB1 owed more than $105 million on a construction loan, which was used for the more than 370,000 square feet of retail shops, almost 24,000 square feet of office space and 195 residential units that make up the core of The Market Common. JP Morgan's spokesman also said he could not comment on the loss on the property.
The owners of The Market Common probably would have been able to continue to make payments on the loan, but chose to default because the property is no longer worth what it cost to build, said Dan McCaffery, president of McCaffery Interests in May. The loan that LUK-MB1 LLC had on the property was a nonrecourse loan, which means in the case of a default and foreclosure, the bank cannot go after the company's or any company employee's assets. Caffery said the property's value has dropped, and there were better investments than continuing to pay on the loan, despite nothing being wrong with the project. Tom Leath, the Myrtle Beach city manager, said that the city is pleased that Leucadia is involved because the company managed the property well before, and it appears that it has the money to succeed. "We are pleased that the purchaser is tied to Leucadia because we think obviously they know exactly what the issue is, and they understand the market having been here a few years," he said. "There is no learning curve with them."
A representative of Leucadia called Leath last Friday to tell him that the sale was finalized and said that he would be in town in the next couple weeks and would like to meet with the city. Leath said that he hasn't heard from them again yet, but that at a meeting, he would stress the desire to keep the current mix of tenants at The Market Common. He said that companies throughout the country are choosing to walk away from properties that have substantially lost value and are no longer sound investments, so this situation is not unique. "If you look at the foreclosure as a calculated business decision, then I don't think it's odd that they got back in line to buy it back," Leath said. The sale to the same company surprised Penny Vaigneur, the owner of Copper Penny at The Market Common. "I'm very surprised that it worked out that way," she said. "In fact it's very difficult to understand why all that transpired." Vaigneur said that she's glad the property has a new owner and that she has always been pleased with the management. Vaigneur said she'd like to see better signage and more traffic because it has been a slow year for her business at The Market Common. "I believe that the economy was the main factor that affected it; I don't think it was the owners or the management," she said. "I hope they've learned a lot from this, and I just hope they'll be ready to keep their promises and work on things that will bring people to the center.
The owners of The Market Common probably would have been able to continue to make payments on the loan, but chose to default because the property is no longer worth what it cost to build, said Dan McCaffery, president of McCaffery Interests in May. The loan that LUK-MB1 LLC had on the property was a nonrecourse loan, which means in the case of a default and foreclosure, the bank cannot go after the company's or any company employee's assets. Caffery said the property's value has dropped, and there were better investments than continuing to pay on the loan, despite nothing being wrong with the project. Tom Leath, the Myrtle Beach city manager, said that the city is pleased that Leucadia is involved because the company managed the property well before, and it appears that it has the money to succeed. "We are pleased that the purchaser is tied to Leucadia because we think obviously they know exactly what the issue is, and they understand the market having been here a few years," he said. "There is no learning curve with them."
A representative of Leucadia called Leath last Friday to tell him that the sale was finalized and said that he would be in town in the next couple weeks and would like to meet with the city. Leath said that he hasn't heard from them again yet, but that at a meeting, he would stress the desire to keep the current mix of tenants at The Market Common. He said that companies throughout the country are choosing to walk away from properties that have substantially lost value and are no longer sound investments, so this situation is not unique. "If you look at the foreclosure as a calculated business decision, then I don't think it's odd that they got back in line to buy it back," Leath said. The sale to the same company surprised Penny Vaigneur, the owner of Copper Penny at The Market Common. "I'm very surprised that it worked out that way," she said. "In fact it's very difficult to understand why all that transpired." Vaigneur said that she's glad the property has a new owner and that she has always been pleased with the management. Vaigneur said she'd like to see better signage and more traffic because it has been a slow year for her business at The Market Common. "I believe that the economy was the main factor that affected it; I don't think it was the owners or the management," she said. "I hope they've learned a lot from this, and I just hope they'll be ready to keep their promises and work on things that will bring people to the center.
Tuesday
WonderWorks on the way at Broadway Beach in Myrtle Beach
Sun News - Inside a trailer at Broadway at the Beach, construction workers sit around a table littered with blueprints. On the walls, artists renderings show what might look impossible at first: a building that looks as if its been uprooted and placed on its roof. Just outside, that fantastical building is becoming a reality. WonderWorks, an upside-down science attraction, is roughly halfway finished and on track for its March opening, said Jackie Vasquez, director of sales and marketing for WonderWorks. "Structurally, it's all there," Vasquez said. The four-story building that was a skeleton about two months ago is now covered in yellow insulation and the fake stone exterior will start to go up by mid-January, Vasquez said. "Once that all happens we'll be able to play inside and move all the exhibits in," she said while standing in what will be the ropes course and laser tag area. "It all happens pretty fast." Once complete, there will be a build-your-own roller coaster exhibit, hurricane simulator, illusion gallery and video arcade among other exhibits, she said. The attraction will also begin hiring in late January or early February to fill about 100 to 120 positions, General Manager Robert Stinnett said. Positions include exhibit attendants, retail associates, cafe staff and ropes course staff, he said, and applications are available at WonderWorksOnline.com/myrtle-beach.
Myrtle Beach International Airport Breaks Record
Sun News - Michael Malone thought he had done something wrong when Myrtle Beach International Airport staff asked to speak with him after his flight landed Thursday afternoon. Instead, the New York resident was given a bag of prizes for being the 839,451st passenger to fly into the airport in 2010, breaking the previous record for most inbound passengers set in 2007. "I didn't know why I was being singled out," Malone said. "It's great. A pleasant surprise. A bonus for New Year's weekend." Malone received two tickets on Spirit Airlines in addition to taffy, postcards and a miniature football. It's an impressive accomplishment, considering national unemployment is roughly 10 percent and consumer confidence is at all time lows, said Michael Boyd, an aviation consultant who has worked with Myrtle Beach in the past to bring new air service. No other airport had growth rates comparable to Myrtle Beach in 2010, Boyd said. Although the airport can't sustain its pace forever, it could continue to see 5 to 10 percent growth in the next couple of years, said Boyd, president of Colorado-based Boyd Group International. The airport is aiming for 1 million passengers in 2011, airport director Michael La Pier said at the event welcoming Malone and others on a flight from LaGuardia. "I think we've got a good shot at it," La Pier said.
Spirit Airlines' plan to introduce flights to five new destinations - Washington, D.C.; Plattsburgh, N.Y.; Niagara Falls, N.Y.; Latrobe, Pa.; and Charleston, W.Va. - next year will go a long way toward accomplishing the goal, he said. Porter Airlines will also expand on the number of seasonal flights it began offering to Toronto in 2010, he said. La Pier said he expects more airlines to announce new routes soon but did not say which airlines or destinations. Breaking the record in 2010 shows that the efforts of the city, Horry County, Myrtle Beach Area Chamber of Commerce and Myrtle Beach Golf Holiday to bring new tourists are paying off, La Pier said. Advertising for the Myrtle Beach area has jumped since 2009 when the City Council imposed a 1 cent sales tax, with the proceeds going to the chamber's promotions budget. Since then, the chamber has spent about $17 million promoting the Grand Strand out-of-state, according to chamber leaders. "In a period when the economy is not doing so well and a number of markets throughout the country are seeing downturns in their traffic, we're actually setting a record," La Pier said. The airports expansion will add six new gates and allow the airport to meet the rising demand, he said. The expanded airport will only further Myrtle Beach's reputation as "the Vatican of golf," Boyd said. "What's the key is to have a facility that can handle 'large' airplanes so they can carry golf bags," he said.
Spirit Airlines' plan to introduce flights to five new destinations - Washington, D.C.; Plattsburgh, N.Y.; Niagara Falls, N.Y.; Latrobe, Pa.; and Charleston, W.Va. - next year will go a long way toward accomplishing the goal, he said. Porter Airlines will also expand on the number of seasonal flights it began offering to Toronto in 2010, he said. La Pier said he expects more airlines to announce new routes soon but did not say which airlines or destinations. Breaking the record in 2010 shows that the efforts of the city, Horry County, Myrtle Beach Area Chamber of Commerce and Myrtle Beach Golf Holiday to bring new tourists are paying off, La Pier said. Advertising for the Myrtle Beach area has jumped since 2009 when the City Council imposed a 1 cent sales tax, with the proceeds going to the chamber's promotions budget. Since then, the chamber has spent about $17 million promoting the Grand Strand out-of-state, according to chamber leaders. "In a period when the economy is not doing so well and a number of markets throughout the country are seeing downturns in their traffic, we're actually setting a record," La Pier said. The airports expansion will add six new gates and allow the airport to meet the rising demand, he said. The expanded airport will only further Myrtle Beach's reputation as "the Vatican of golf," Boyd said. "What's the key is to have a facility that can handle 'large' airplanes so they can carry golf bags," he said.
Pat Boone Family Theater replaces NASCAR cafe in Myrtle Beach
Sun News - A new theater named for a famous singer could open in Myrtle Beach as early as March, a representative of the entertainment company behind the theater said Thursday. The Pat Boone Family Theater will open this spring in the former NASCAR Cafe at the corner of U.S. 17 and 21st Avenue North in Myrtle Beach, said Glenn W. Milligan, president and chief executive of Liquid Metal Holdings. The theater will open May 1 at the latest for the start of the peak tourist season, Milligan said. The location was chosen because of the high volume of traffic through the intersection, he said. Boone, who rose to fame in the 1950s and '60s and continues to record pop and Christian music, will help book acts for the theater and will also perform several shows each year, Milligan said. Illinois-based Liquid Metal is in the process of applying for permits to renovate the building. Turning the cafe into a 600-seat theater should take two to three months once they begin, Milligan said. The exterior of the building will remain mostly unchanged, except for different signs, he said. The venue will join the tribute artist show Legends in Concert in opening this spring in the Broadway at the Beach area. Jay Lodge, CEO of the nearby Palace Theatre, said he welcomes the competition. "The town is big enough and we bring enough tourists to the town that it's great to give them something else to do," Lodge said. "Our philosophy is it's clearly not going to go away, so if we can't beat it let's join it."
Milligan had first announced the Pat Boone Family Theater would open in spring 2010, before it had a location, but the project was delayed by the weak economy and contract issues, he said. Milligan declined to give further details, but said, "We've resolved what we needed to resolve." A representative of Burroughs & Chapin Co. Inc., which owns the building where the theater will be located, declined to elaborate, saying the company does not comment on pending contractual matters. The theater will be able to offer a more intimate setting than older, larger theaters in Myrtle Beach, Milligan said. "We believe that our 600-seat theater is the prototypical theater of the future," he said. There will be up to 1,400 performance slots at the theater, 500 of which will be filled by resident illusionist Morgan Strebler, Milligan said. Strebler was given the 2011 Merlin Award, one of magic's top awards with past winners including David Copperfield and Siegfried & Roy. For his Myrtle Beach show, called "Inside Your Mind," Strebler says he will read minds, bend metal with his thoughts and perform large stage illusions. "My big show is usually 2,500 seats. This is something smaller," he said. "I can do my magic, and there's not a bad seat in the house." The venue will also be available for local gospel groups and regional singers to use, Milligan said. The theater plans to operate year-round and will hire 30 to 40 staff members, he said. Milligan said the theater will offer better prices than competitors, a claim Lodge said he doubts is possible. With only 600 seats, the Pat Boone Family Theater would be hard-pressed to offer lower ticket prices and still put on a good show compared to The Palace Theatre, which has 2,500 seats, Lodge said. A new theater will push others to produce better shows and give Myrtle Beach theater a better reputation in general, he said. "It will keep everybody on their toes," Lodge said.
Milligan had first announced the Pat Boone Family Theater would open in spring 2010, before it had a location, but the project was delayed by the weak economy and contract issues, he said. Milligan declined to give further details, but said, "We've resolved what we needed to resolve." A representative of Burroughs & Chapin Co. Inc., which owns the building where the theater will be located, declined to elaborate, saying the company does not comment on pending contractual matters. The theater will be able to offer a more intimate setting than older, larger theaters in Myrtle Beach, Milligan said. "We believe that our 600-seat theater is the prototypical theater of the future," he said. There will be up to 1,400 performance slots at the theater, 500 of which will be filled by resident illusionist Morgan Strebler, Milligan said. Strebler was given the 2011 Merlin Award, one of magic's top awards with past winners including David Copperfield and Siegfried & Roy. For his Myrtle Beach show, called "Inside Your Mind," Strebler says he will read minds, bend metal with his thoughts and perform large stage illusions. "My big show is usually 2,500 seats. This is something smaller," he said. "I can do my magic, and there's not a bad seat in the house." The venue will also be available for local gospel groups and regional singers to use, Milligan said. The theater plans to operate year-round and will hire 30 to 40 staff members, he said. Milligan said the theater will offer better prices than competitors, a claim Lodge said he doubts is possible. With only 600 seats, the Pat Boone Family Theater would be hard-pressed to offer lower ticket prices and still put on a good show compared to The Palace Theatre, which has 2,500 seats, Lodge said. A new theater will push others to produce better shows and give Myrtle Beach theater a better reputation in general, he said. "It will keep everybody on their toes," Lodge said.
The Market Common in Myrtle Beach Sold Out of Foreclosure
Sun News - The Market Common has been sold out of foreclosure to BEI-Beach LLC, according to a written release from an attorney involved in the sale. Gregory Maloney, court-appointed receiver for The Market Common, conducted the sale, said Franklin Daniels, Maloney's attorney, in a written statement. Staff at stores and restaurants in The Market Common said Friday that they planned to continue to operate normally. Lenders filed a foreclosure suit against the center in May after owners failed to make loan payments. Daniels' statement did not give details on the sale or information on BEI-Beach LLC. Neither party in the sale could be reached immediately for comment. Center Marketing Manager Hatton Gravely said she was not authorized to comment on the sale. BEI-Beach is a limited liability company that was incorporated in Delaware on Dec. 27, according to Delaware's Division of Corporations records. Daniels' statement did not say how much BEI-Beach has agreed to pay for the complex. The Market Common had no set price, according to a sales flier produced by Jones Lang LaSalle, which marketed the complex to potential buyers. Jones Lang LaSalle also employs Maloney. The sales flier listed conditions for the sale were "as is, where is," and Jones Lang LaSalle hoped to find someone to buy with cash up front. Center management did not inform the staff of King Street Grill in The Market Common of the sale, manager Emerald Rabon said. Rabon said she hoped that the new owners would do a better job of running the mall than the last owners. "Advertising wise, they could have done a lot more to get Market Commons out there," she said.
Business has been strong at the restaurant, Rabon said. A 2010 quarterly report from LUK-MB1 reported that many Market Common shops and restaurants had requested and are paying reduced rents and that some businesses are struggling to stay afloat. At the time, about 37 of the 55 businesses were on a "watch list." Those tenants have either requested rent relief, could get rent adjustments or risk being kicked out if the companies don't fulfill certain requirements. Some were receiving financial assistance, are closing or owe money. JPMorgan Chase Bank filed a foreclosure suit against The Market Common's developer and owner, LUK-MB1 LLC, in May. LUK-MB1, which is owned by the Leucadia National Corp., stopped making payments on more than $105 million it owed lenders. The loan was for more than 370,000 square feet of shops, almost 24,000 square feet of office space and 195 residential units that make up the core of The Market Common, which opened in 2008.
Business has been strong at the restaurant, Rabon said. A 2010 quarterly report from LUK-MB1 reported that many Market Common shops and restaurants had requested and are paying reduced rents and that some businesses are struggling to stay afloat. At the time, about 37 of the 55 businesses were on a "watch list." Those tenants have either requested rent relief, could get rent adjustments or risk being kicked out if the companies don't fulfill certain requirements. Some were receiving financial assistance, are closing or owe money. JPMorgan Chase Bank filed a foreclosure suit against The Market Common's developer and owner, LUK-MB1 LLC, in May. LUK-MB1, which is owned by the Leucadia National Corp., stopped making payments on more than $105 million it owed lenders. The loan was for more than 370,000 square feet of shops, almost 24,000 square feet of office space and 195 residential units that make up the core of The Market Common, which opened in 2008.
Notable Properties in Myrtle Beach Sold
One of the Carolina’s leading real estate development groups including owners of Hilton Head Lakes and Stratford Land have formed a joint venture which acquired 15 Coastal Carolina residential and commercial real estate assets in the coastal Carolina region. The real estate portfolio includes over 7390 acres of fully-entitled land with a large amount of infrastructure already in place and 725 developed lots, 7245 partially developed lots, and 15,519 permitted lots within popular master-planned communities in Hilton Head and Myrtle Beach and one undeveloped parcel in North Myrtle Beach. The portfolio also includes two commercial loans secured by in-service assets such as a golf course, several office buildings, residential lots, and a beachfront property. A purchase price and immediate plans for the properties have not been revealed for the transaction that closed on December 22, 2010.
“The financial strengths of both groups combine to give this joint venture the staying power to ensure that each of these properties is developed to its highest potential at the perfect time.” 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 1900-acre, fully entitled, master-planned development with a Tommy Fazio championship golf course in play.
Click on the link below for the full article:
http://ow.ly/3C6Th
“The financial strengths of both groups combine to give this joint venture the staying power to ensure that each of these properties is developed to its highest potential at the perfect time.” 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 1900-acre, fully entitled, master-planned development with a Tommy Fazio championship golf course in play.
Click on the link below for the full article:
http://ow.ly/3C6Th
Conway Shopping Center Sold
Developers Diversified Realty Corp. (DDR) has sold a South Carolina shopping center to a New York City-based investment company. Gateway Plaza is located at 2701 Church St. in Conway. Constructed in 2002, the 62,400-square-foot center is anchored by Office Depot and Burkes Outlet. A Walmart shadow anchors the property. Jeff Winokur of White Plains, N.Y.-based JH Winokur Inc. represented both parties in the deal. The acquisition price was not released.
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