Evans Georgia Outparcel Market Report

Evans, Georgia is not only the best place to live in the United States according to Money Magazine, but also a great place to conduct business.  If you are looking to locate your business in Evans, here’s some information that may help you as you search for a location.

From 2019 to 2020, the price of an outparcel averaged almost $900,000.  The outparcels in our study ranged in size from .54 acres to 1.16 but averaged .92 acres.

An outparcel is defined as a small lot on the outer edge of a shopping center, usually reserved for later sale of fast-food or chain restaurant, also called a pad site.  Generally, outparcels are around 1 acre in size.  In theory, the price of an outparcel should have some relationship to fundamental attributes such as access, visibility, demographics, and quality of the anchor or development that it sits in front of.

Sites that had full-motion direct access to traffic had the highest sale prices per acre.   515 Mullins Crossing had the highest sale price (1.296M/Ac) in our study and sat on a signalized intersection in front of a Belk-anchored shopping center.

Access is another important factor.  Washington road is a thriving commercial corridor partly because it has a turn lane (or suicide lane) on most of its stretch from Downtown Augusta past Evans.  Many commercial corridors are seeing medians and concrete barriers installed, and this limits access to the other lane, and creates “dead zones” or pockets where there is not enough traffic to satisfy retailer’s requirements.   Many shopping center developers limit access to the main road and give outparcels access via an internal road structure.  The Mullins Crossing Outparcels are good examples of this.  This can be an issue for Quick-Serve Restaurants (QSRs) that need to get parking and a drive-thru on a small site—having two curb cuts can be a good way to get cars in and out and still have room for parking.

Another consideration for retailers is off-site utilities.  Many shopping center developers size stormwater and parking in such a way to allow the outparcels to be very efficient—not only saving them money in site costs but also allowing them to be very efficient and potentially fit on a smaller site.

Something to be aware of is residual value.  Many anchors such as Wal-Mart will place Covenants, Conditions, & Restrictions (CCRs) on their outparcels, which will impact the number of users that occupy the outparcel, which would negatively impact their sale value.  Another item to consider would be size—although your current user may be able to use a site smaller than .7, most others can’t, and will make finding another tenant a challenge should your current tenant vacate.

You can find our Evans Outparcel Report here..  Please let me know if you see additional details for us to add, and don’t hesitate to reach out to us with questions.   For developers—what trends are you seeing as you search for outparcels?   For users—what are common themes you’ve seen across the best sites that you have occupied?   We’d love to hear from you.  Thanks for reading!

This post originally appeared in Jonathan Aceves’s blog and is republished with permission. 

The Basics of Historic Tax Credits

What are historic tax Credits?  Historic Rehabilitation Tax Credits are available for developers who renovate historic buildings.  These include federal and state historic tax credits.  The federal tax credit is 20% of the qualified expenses over 5 years.  Most states (GA and SC included) have 25% tax credits, often with a cap.  Georgia’s tax credit is capped at $300,000 for the time being, and South Carolina’s is capped at 1,000,000. 

Which buildings qualify for this credit?  Buildings located in historic districts or individually listed in the national register of historic places qualify, also buildings deemed by the state historic preservation office to be historically significant. 

Historic Tax credits are incredibly complex instruments.  They can be used to make historic renovation projects feasible that otherwise would not make financial sense.  They can be coupled with other programs such as the opportunity zone program or enterprise zone programs.  This article will cover some of the basics and provide links to helpful resources. 

What are financial guidelines?  First, you must spend more than the adjusted basis in your renovation.  Make sure to talk with a tax professional to help you organize this calculation, but basically you must spend an amount greater than what the building is worth. Second, only certain expenses are eligible for the credit—these are “qualified rehabilitation expenditures” (QREs).  QREs include construction costs, taxes, consulting expenses, architectural costs, among others.  Generally, additions to the building do not quality, as well as furnishings, commissions, and appliances.   

Are there guidelines for the renovation?   Yes.  The secretary of the interior has guidelines for the renovation they’d like applicants to follow, repairing rather than replacing historic elements, preserving distinctive finishes and features, and maintaining the historic character of the building.  You can see their 10 principles here

Is there a requirement to hold the property for a certain amount of time?  Yes.  You must hold the property for 5 years. 

Who can use historic tax credits?  In many cases, application of the Federal tax credit is limited to passive income for taxpayers with adjusted gross income above $250,000.  Real estate professionals, short-term rental operators, and C-corps are exempted from this rule.  See questions 35-37 here.  

How do you apply?  We generally recommend that an applicant work with a consultant and an accountant to help them with the applications.  Reach out to us and we can connect you with expert consultants. 

We’d love to learn from you and hear your feedback!  Have you ever participated in a historic tax credit project?  Have you evaluated a historic renovation? 

This post originally appeared in Jonathan Aceves’s blog and is republished with permission. 

Depot developer Bloc Global threatens to walk from Downtown deal

Today the Augusta Chronicle reported that it looks like the proposed $94 million dollar Augusta Riverfront Depot project is teetering on the edge of collapse.  Bloc Global, the developer, has asked for the return of their $50,000 held in escrow, or they will terminate from the deal.  

 

In 2016, the commission authorized the city DDA to market a 6.3-acre riverfront parcel at the corner of Reynolds and Sixth streets and we later learned of a pretty major conflict over the employee parking lot at the site that was provided for Unisys Corp the year before. 

 

What are your thoughts on this project?  What do you think will be the result?  

 

Read the full story:

https://www.augustachronicle.com/news/20200107/depot-developers-threaten-to-withdraw-from-deal

 

Columbia County Apartment Development Rezoning Moves Forward

 

Columbia County Apartments
Blackstone Camp Apartments Elevation
Blackstone Camp Site
Aerial View of Apartment Site

 

Southeastern Development received a recommendation for approval on zoning revision to modify the shape of the site on Blackstone Camp Road.  The property is near the upscale River Island Subdivision in Columbia County.  The project would be limited to 274 units, and would follow the River Island PUD narrative design standards.  Southeastern Development has already started the site work.  The project was technically approved in 2002. It recently has received a lot of criticism from neighbors, including a petition for the Columbia County Commission to reconsider.  

 

I think this is a good project and will ultimately be good for this community.  I think it’s important to have a healthy mix of housing, and new Class-A apartments force older complexes to lower their prices, and create a cycle which helps create a diverse offering of housing products.  Also, A-Class housing becomes B-Class housing, B-Class housing becomes C-Class, and so forth.   

 

It seems that lower-income neighborhoods that don’t want to see change and diversification fight against gentrification, while higher-income neighborhoods that don’t want to see change fight against “higher crime rates” and “overcrowding of schools”.  

 

Hare are a few additional resources, the Augusta Chronicle Article, the recent rezoning application on this project, and a 2010 Study by Columbia County on Multifamily development.  

 

This looks like a great project that should be great for Columbia County.  Augusta is continuing to grow!  What are your thoughts? 

 

 

155-Unit Downtown Opportunity Zone Apartment Project Moving Forward–Continued Growth Downtown

 

Artist Rendering of Millhouse Station
Artist Rendering of Millhouse Station

 

Downtown Augusta continues to announce new projects and developments! Developer Ivey Development announced Friday they had closed on the land for a new downtown apartment complex.  This new development is in the immediate vicinity of two other ongoing development projects on Telfair Street, and three blocks from the newly completed Georgia Cyber Center.  

 

Ivey Development, developer for the 155-Unit Apartment Complex at 11th and Fenwick in Downtown Augusta, announced on Friday December 6th that they had closed on he land and were moving forward with the project. McKnight Construction has been selected as the General Contractor.  The land was purchased by Ivey Development from Jeff and Joey Hadden, who also own Phoenix Printing across the street.    

 

1024 Telfair Street – Augusta Office Solutions

This project is 500 feet from Augusta Office Solutions’ new building at 1024 Telfair,and a block from the city’s new fire station at 928 Telfair Street.   RD Brown is the general contractor on 1024 Telfair Project, which appears to be moving along nicely. 

 

This is great news for the City of Augusta!  155 high-end apartments will help fill in the housing gap created by continuing downtown developments, and will continue to press demand for retail and office space in the Central Business District.  

 

Congrats to Beman Group and Ivey Homes on what looks to be an incredible project! McKnight Construction Company, Inc. will serve as the general contractor. Trotter-Jordan represented the seller.  

 

What is your opinion of the downtown momentum?  What do you think we will see in 2020?

 

Augusta Chronicle Article: https://www.augustachronicle.com/business/20191206/ivey-development-acquires-downtown-land-to-build-155-unit-apartment-community

 

MKnight Construction Website: https://www.mcknightconstructionco.com/#1

 

Ivey Development Website: https://www.iveyhomes.com/

 

Article about the new fire station: https://www.augustachronicle.com/news/20190109/new-fire-station-slated-for-telfair-street

 

Update from RD Brown on construction of Augusta Office Supplies’ Telfair Street Building: https://www.browntrusted.com/overview/awards-accolades/

132-Unit Student Multifamily Housing Development given Preliminary Approval

2715 N Davidson
Photo is of the 2715 N Davidson Apartment Development, another project that College Acres was involved with.  –Charlotte Business Journal

 

 

132-Unit Student Multifamily Housing Development on Druid Park Ave given preliminary approval. Myrtle Beach Developer College Acres has proposed to build a four-story #apartment development aimed at Paine & AU students. David Despain, the developer, has developed a number of similar properties, and was also involved in working with Coastal Carolina University for the development of the HTC Center in Conway, SC.

 

It is great to see developers take notice of what’s happening in Augusta. This looks like a great project and should have a big positive impact in that neighborhood!

 

Augusta Chronicle Article: https://www.augustachronicle.com/news/20191202/developer-proposes-student-housing-complex-on-druid-park-ave

 

Info on Charlotte Project: https://www.bizjournals.com/charlotte/blog/real_estate/2015/07/developers-planning-147-unit-apartment-complex-in.html

 

Info on Wilmington Project: https://www.starnewsonline.com/news/20190103/more-student-housing-proposed-near-uncw

Wilmington Project Approved in October: https://www.wect.com/2018/10/18/wilmington-planning-commission-approves-college-acres-townhome-development/

 

Horry City Council Minutes RE: Tiff Bonds for HTC Center:

https://www.horrycounty.org/Portals/0/Docs/council/archives/min04-0518.pdf