12/18/23 South Carolina Mastermind Group Meeting

South Carolina November 2023 – Key Take Aways

Brad Toy of Wilson Kibler shared that some of their tenants have begun asking about subletting their space out. Edward Wilson of Wilson Kibler said that industrial still remains strong. He has a couple tracts of land under contract for lite industrial and recently closed a medical project. Holly Douglas Schaumber of Douglas Development shared that the Multifamily Housing Bonds application just opened up after 2 years. She also said the workforce housing is the biggest need at the moment. JR Charles of the City of Mauldin said that Mauldin currently has 3500 permitted lots under development. The population in Mauldin is continuing to boom. Bridgeway station is up and running. Josh Workman of Tax Credit Marketplace said that they will end up about 35% above with 19 projects. They have seen a lot of large textile projects coming for 2025-2026. He also shared that the corporate transparency act goes into effect in January. Mark Cooter of Cherry Bekaert said that energy is a big component of what they are seeing for both residential and commercial. Estate tax exemption gets cut in half in 2026. He recommends getting clients to think ahead. Megan O’Neill of Wyche, PA shared that developer clients are excited about the idea of interest rates coming down. Scott Lynn of Cache Realty Capital provides equity capital to developers. He currently works mainly with distressed deals. He is hopeful that rates may be topping out which would lead to value stabilization. Tice Wellborn of Terracon said that affordable housing is still in high demand for them. They have kickoff for 5 new projects this week. Tice specializes in brownfields work and shared that federal brownfields tax credits are back on the table since 2012. He is hopeful that this will go through. Bobby Lyons of Lyons Industrial Properties specializes in industrial properties. The bigger product range has slowed down. 10-60,000 sq ft is the hot size range at the moment. Class A slowed down. Land deals are going well for them. In 2022, they did 3 times normal volume and 2 times normal volume in 2023. Bradley Cox of Pinnacle Financial said that it is challenging in the banking world. Staying busy on the CNI side but thinks that will turn in the next 12 months. Chisolm Nicholson of Flagship Properties works in smaller range industrial. He said that Mom and Pop tenants in under 5000 sq ft are getting hammered with lease rates. Greenville is still hot. Chris Schweighart of Aline Capital said that Inventory remains low for industrial. They had a really good year. They are starting to see some Sale Lease Backs in their industry. Sam Faulkenberry of Aline Capital focuses heavily on investments. Buyer and tenant representation are keeping them busy. Jack McGinness of Bellwether Enterprise says it is interesting to be in this industry in this market. Matt Good of Bellwether Enterprise closed fewer transactions this year but still had a good year. They are chasing refinancing. He is cautiously optimistic for next year. Laurens Nicholson of Windsor Aughtry has 3 hospitality projects in Arkansas that are in development. Stormie Ellenberg of Clear Mountain Properties works primarily with multifamily and some smaller industrial flex. Their pipeline is busy. They have 2 projects in the works – Townhomes in Laurens County and multifamily in Travelers Rest.