JANUARY 31, 2014
BEST USE QUESTION For years, commercial real estate leaders have argued about the future of Greenville’s County Square. Here’s a look at some of the plans on the table. F O C U S
C O M M E R C I A L
R E A L
E S T A T E
UBJ UP FRONT
High Priority By Ryan Johnston | associate publisher firstname.lastname@example.org
Welcome to our first quarterly
best geographical assets (with central real estate issue. Four times a year, access, an uninhibited skyline view UBJ will focus on the past quarter and and proximity to Falls Park, the the topics related to the physical future Cancer Survivor Park, the growth of the Upstate. This has been Drive stadium, Augusta Road and one of our top editorial priorities since downtown Greenville) and putting Day One, and we hope county offices and parking facilities that these four special there is not the issues give you an inside look into this highest and best use. growth and the conI understand why the versations surroundcounty enjoys that location – it is all ing these opportuniabout access and ties. transportation for This week’s cover story on the future of county residents. I am County Square is such not saying these an opportunity – just offices do not deserve one of the many BIG to sit on a convenient chances for us to location. There are RYAN JOHNSTON decide as a communiplenty of large accesty what we are missing and what is sible blocks of land, central to truly a property’s highest and best use. downtown Greenville, to build Many thanks are due to Clemson’s something special like this. I just do Real Estate & Development program not believe it needs to be located on for helping us look at the outcome of such precious soil. their County Square project. Here’s a BIG idea: If access and I understand that the county and transportation are so critical, why not the city have begun “high-level” take this opportunity and relocate conversations regarding the site’s these offices above a new Multimodpotential use. High-level? Why can’t al Transportation Hub? That’s just one crazy idea. I would they be intense public conversations? love to hear more, and not after the These BIG opportunities are the highest priority for all of us as we decisions have been made behind define and develop the next centers closed doors, away from the experts and the neighbors. I fear that if there of influence in the Upstate. Call me naive, but I wish there could is not a larger public/private converbe some sort of brain trust composed sation around these assets that they of city and community stakeholders, will end up falling short. developers and planners that could Before decisions are made and the sit down and discuss the significance headlines are written, why can’t we of this property and its highest and have a more serious discussion? You best use. Let’s throw out BIG hairy can’t recreate these large geographiideas, ask the hard questions and cal locations that are in transition. really push the envelope. Because I It’s time to get really creative, think will tell you one thing: This city did really big and realize that these type not get where it is today by voting of opportunities allow us to continue status quo. to make Greenville one of the best If I were at that table, I would argue cities to live, work and play in the that taking what is one of the city’s country.
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UPSTATE BUSINESS JOURNAL 3
Volume 3, Issue 5
January 31, 2014
WORTH REPEATING “The facility is now dated and not the most efficient use for county offices. We can do better.” Joe Kernell, Greenville County administrator, on County Square.
“It behooves the county to be deliberate and careful with its planned uses. It has a lot of potential, but it must be carefully considered and planned.” Doug Harper, chairman of general contracting firm Harper Corporation, on the possible future of County Square.
“If you don’t have a sense of urgency, you’re dead.” Dan Sterling, president of Green Cloud Technologies.
MONEY SHOT: Regus is considered to be the largest and one of the top companies in the world that delivers executive office space – like this space, on the fifth floor at NOMA tower, 220 N. Main St.
On the New Coding Gold Rush… “We try to paint a more accurate picture,” says Eric Dodds, the cofounder of the Iron Yard. Dodds says the Iron Yard’s Academy eschews the “pretty typical Silicon Valley sensationalism” in favor of a realistic approach to student success. Fast Company magazine, discussing coding schools in an article, “Hacking Hack Schools to Make Them Work.” Read the whole thing at bit.ly/fcironyard.
4 UPSTATE BUSINESS JOURNAL
January 31, 2014
Look for Bikas Drive In Restaurant to open its second Greenville location soon at 2818 Wade Hampton Blvd… Plans are being laid for a new, 12,000-square-foot retail strip center called Suber Commons at Wade Hampton Boulevard and N. Suber Road in Greer. Tenants-to-be reportedly will include Doctors Express, Heartland Dental and IHOP…
A new 57-townhome complex is in the works at the other end of Suber Road. Greer City Council is poised to consider first reading approval of an ordinance to change the zoning at 1249 S. Suber Road from singlefamily to multifamily in preparation for the complex, to be called The Townes at Riverside Park…
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Ridership, Revenues Up at Greenlink Buses to include Wi-Fi, GPS to aid in finding routes By Jennifer Oladipo | senior business writer | email@example.com
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6 UPSTATE BUSINESS JOURNAL
January 31, 2014
Greenlink reported that ridership last year when the agency did not increased for the fifth year in a row in renew its contract with Clear Talk, 2013, up 10 percent. The public whose service was not available in the transit agency also announced several Pickens and Clemson areas. Verizon 2014 goals at its annual meeting is the new provider. Monday at County Square. Soon, riders also be will able to look A total of 933,275 people rode online to find where buses are located Greenlink last year, compared with with the addition of CAD-AVL, or 839,670 in 2012. That led to revenue Computer-Assisted Dispatch, Autoincreases. The revenue for 2013 was mated Vehicle Location. The GPS $934,109, which is also an increase location feature will be available of 10 percent commid-February and will pared to 2012 and an ➤ BY THE NUMBERS improve the staff’s increase of 39 percent ability to locate buses compared to 2009. as well. Previously, Greenlink riders in 2013 Manager of Adminthey had to call disistration Greg Baney patchers by radio to Greenlink riders in 2012 said that although addetermine a vehicle’s ditional routes to location, which could Clemson and Easley take several minutes. Greenlink revenue in 2013 were added during Greenlink also hopes 2013, the increased to launch a smartridership was more phone app for customfrom 2012 attributable to “an iners to have the same creased public profile information in the from 2009 and more reliable coming months. service.” The Clemson Other plans include service added 350 to 400 daily pas- an updated website, text messaging sengers, said Transit Director Mark system, automated announcements Rickards, but those numbers are not on buses and extended service hours included in the 2013 calculations. on Woodruff Road. New trollies are “I think part of the reading rider- set to arrive in the spring as part of a ship is up is because the economy is partnership with the Greenville Drive. up in Greenville County. We see a lot Meanwhile, construction is ongoing of people going to jobs that we didn’t at Greenlink’s new administrative see three or four years ago,” Rickards suite at the transit center at 100 W. said. McBee Ave. formerly occupied by Greenville’s public transit system Greyhound Bus Lines. Administrative recently added amenities that will staff is expected to join the operations make rides easier to find and better staff there mid-March. connected. Friday was the projected “It’s all needed, and we’ll see what deadline for all buses to be equipped we can check off this year,” Rickards with wireless Internet access. Green- said. “We’re still not where we hope link had previously provided Wi-Fi to be long-term, but were making but the service was suspended late progress.”
$934,109 Up 10% Up 39%
UBJ ECONOMIC DEVELOPMENT
State Recruited $5.4B in Investment in 2013 By Jennifer Oladipo | senior business writer | firstname.lastname@example.org
The S.C. Department of “South Carolina has proven JOB ANNOUNCEMENTS CAPITAL INVESTMENT Commerce reported that new its place as a manufacturing NEW business recruitment and expowerhouse as we outpace COMPANY NAME JOBS COMPANY NAME INVESTMENT pansion of existing businesses our neighboring states in Boeing 2,000 Boeing $1,000,000,000 generated $5.4 billion in capital manufacturing GDP,” said Benefitfocus 1,200 Google $600,000,000 investment and 15,457 jobs last state Secretary of Commerce STARTEK 665 The Keer Group $218,000,000 year. Bobby Hitt in a release from Time Warner Cable 644 Michelin North America $200,000,000 The manufacturing sector the governor’s office. “While The Keer Group 501 Colgate-Palmolive $196,000,000 comprised 68 percent of new we build on this track record, jobs and 82 percent of capital we continue to diversify our Element Electronics 500 ZF $175,000,000 investment last year, with development strategy, with ZF 450 Harbor Freight Tools $75,000,000 10,442 jobs and $4.5 billion focus on technology and inJN Fibers 318 Essex Holdings, Inc. $54,400,000 in investment recruited in novation, life sciences and EcoDual 307 Weber Automotive $51,000,000 2013. More than half of those logistics-related fields to Colgate-Palmolive 300 Fitesa $50,000,000 dollars, $2.8 billion, came grow the state’s economy.” from expansions of existing The governor also noted that businesses. more than 3,800 jobs went to That mirrors the national trend which showed record highs com- the Institute for Supply Manage- rural areas, and more than a quarter of growth in the manufacturing pared with 2010 and 2011, accord- ment and the Federal Reserve of new jobs were tied to foreign comsector with a strong finish in 2013, ing to various measurements from Board. panies.
January 31, 2014
UPSTATE BUSINESS JOURNAL 7
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UBJ QUARTERLIES Delta Apparel Sales dropped 6.7 percent at Delta Apparel for its first quarter, which ended Dec. 28, 2013. Net sales were $100.0 million, down from $106.8 million for same quarter of the previous year. Sales were strong for the company’s Salt Life brand, acquired in the previous quarter, and revenue for the Art Gun Web sales subsidiary increased more than 50 percent compared with the same period of the previous year. But sales declined 16 percent for the Soffe, Junk Food and The Game brands. The company said Soffe products will be back on the shelves at certain mid-tier retailers for spring 2014, which should drive sales growth at Soffe in the second half of the fiscal year. The quarter also showed higher costs resulting from a recent manufacturing expansion.
Chairman and CEO Robert Humphreys said that while a number of factors combined to produce an unfavorable effect on Delta’s first quarter results, “we are also seeing many positive things in our business. The weak demand for basic undecorated tees experienced during most of the quarter began improving toward the end of December.” Additional bookstore programs for the upcoming season that should improve results for The Game, which specializes in collegiate apparel. “Consumer demand for Salt Life is strong and we are excited about the product expansions that will hit retail shelves in the coming months. Salt Life’s expansion into California is continuing and we expect it to gain traction and provide strong growth opportunities in the years ahead,” Humphreys said.
DELTA APPAREL, INC. (NASDAQ: DLA) NET SALES Q1 2014 $100.0M
Q1 2013 $106.8M NET PROFITS
I N T R O D U C T O R Y R AT E F O R 1 8 M O N T H S Q1 2014 ($1.5M)
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8 UPSTATE BUSINESS JOURNAL
January 31, 2014
Q1 2013 $0.46M
DILUTED EARNINGS PER SHARE $(0.20)
Palmetto Bancshares Palmetto Bancshares, holding company for The Palmetto Bank, reported a net income of $2.68 million for the fourth quarter ended Dec. 31, 2013, a slight decrease from $2.71 million in the same quarter of the previous year. Total assets decreased $8.8 million in the fourth quarter ended Dec. 31 to $1.1 billion at Dec. 31, 2013, primarily due to the strategic reduction in time deposits and related cash, the company said. Net income was $28.6 million for the entire year ended Dec. 31, 2013. That is up from a net loss of $1.9 million in 2012. Results for both the third and fourth quarters of 2013 and the year ended Dec. 31 reflect a non-cash income tax benefit related primarily to the carry-forward, for income tax purpos-
es, of net operating losses from 2010 to 2012 that can be used to offset future taxable income. The company originally wrote off this income tax benefit in the fourth quarter of 2010, but due to a return to sustained profitability recovered this benefit in the third quarter. Chairman and CEO Samuel Erwin said he was pleased with the results. “Both commercial and retail loan production remained solid, reflecting our strategies to focus on niche lending in addition to our traditional products. Focused execution on loan growth, funding cost reduction, noninterest income generation, expense management, and improving asset quality, all contributed to our profitability for the fourth quarter and the year,” he said in a >> statement.
Unemployment Drops in December By Jennifer Oladipo | senior business writer | email@example.com
South Carolina’s seasonally adjusted unemployment rate dropped to 6.6 percent in December, down from 7.1 percent in November. The substantial decrease also marks the first time since 2001 that South Carolina’s rate has dropped below the national average. The national unemployment rate for December was estimated at 6.7 percent. The S.C. Department of Employment and Workforce reported Tuesday that since December 2012, the unemployment rate has declined 2.0 percentage points and the total number of unemployed people declined by 43,493. During the same period, 26,824 people found work and 16,669 people left the labor force. The largest December 2013 gains were in in trade, transportation, utilities, leisure and hospitality and other services, which together added more than 7,400 jobs. Government, con-
>> PALMETTO BANCSHARES (NASDAQ: PLMT)
struction, education and health services saw declines totaling 2,000 jobs. In the Upstate, the Greenville metro area saw a 1.4 percent increase in nonfarm employment. Spartanburg metro employment increased 0.56 percent, and Anderson metro led the way with
a 1.92 percent increase. “Getting our unemployment rate to this nearly six-year low didn’t happen overnight and didn’t happen by itself – it’s the product of Team South Carolina working together to build the kind of business environ-
ment that attracts new companies and encourages existing ones to expand,” said Gov. Nikki Haley in a statement. “The fact that more South Carolinians are working today than since 2008 proves we are moving in the right direction.”
NONFARM EMPLOYMENT BY INDUSTRY, SEASONALLY ADJUSTED STATEWIDE – DECEMBER 2013 JOBS BY INDUSTRY
NOV. 2013 TO DEC. 2013 DEC. 2013 NOV. 2013
DEC. 2012 TO DEC.2013
DEC. 2012 # CHANGE % CHANGE # CHANGE % CHANGE
Total Nonfarm Employment 1,913,300 ,907,000 1,876,500 6,300 0.33% 36,800 1.92% Construction 83,100 83,500 78,800 -400 -0.48% 4,300 5.17% Manufacturing 224,700 224,200 220,700 500 0.22% 4,000 1.78% Trade, Transportation, and Utilities 366,500 363,300 358,400 3,200 0.87% 8,100 2.21% Information 25,100 25,100 25,300 0 0.00% -200 -0.80% Financial Activities 101,800 101,900 100,400 -100 -0.10% 1,400 1.38% Professional and Business Services 240,000 239,600 232,500 400 0.17% 7,500 3.13% Education and Health Services 213,800 214,200 210,800 -400 -0.19% 3,000 1.40% Leisure and Hospitality 230,700 227,700 223,800 3,000 1.30% 6,900 2.99% Other Services 69,700 68,500 70,300 1,200 1.72% -600 -0.86% Government 354,200 355,300 351,700 -1,100 -0.31% 2,500 0.71%
TOTAL ASSETS Q4 2013 $1.1B
Q4 2012 $1.15B
DILUTED EARNINGS PER SHARE +/-4.7%
NET INCOME Q4 2013 $2.67M
Q4 2012 $2.71M
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January 31, 2014
UPSTATE BUSINESS JOURNAL 9
Spartanburg Pub Fosters Business Idea Hub By Jennifer Oladipo | senior business writer | firstname.lastname@example.org
About 80 people gathered at the launch of Grain Ideas last week. The new entrepreneurship meetup and speaker series kicked off at Growler Haus, the craft beer pub that expanded from Anderson to Spartanburg earlier this month. Its goal is to be a regular opportunity for people to gather and see how their ideas might become businesses. Business owners, representatives from the City of Spartanburg and the Chamber of Commerce, and other interested community members attended. The event began with former Spartanburg Mayor Bill Barnet’s discussion of revitalization activities in Spartanburg’s Northside neigh-
borhood and the potential for more. He highlighted assets such as universities and special setups that make the area “high potential despite high poverty,” and said he was hoping for a $30 million federal
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grant to do more. Afterward, attendees broke into groups and shared their ideas for Spartanburg on special coasters that they then exchanged for a free beer at the bar. The evening closed with a pitch presenta-
tion by Southyeast Labs, a Greenville-based startup that harvests local yeast strains for area beer producers. Growler Haus owner Craig Kinley had piloted the idea at the pub’s Anderson location. He is working with Jeremy Boeh and others at Wofford College’s entrepreneurship program. Some attendees did not have entrepreneurial goals, but wanted to support the program. Jillian Kersh and Todd Riddle, who work at Sherman College of Chiropractic, said they attended the event in order to stay abreast of developments in Spartanburg, especially downtown. “We have 300 students and the more involved that we are, the more they are connected,” Kersh said.
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10 UPSTATE BUSINESS JOURNAL
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January 31, 2014
A crash course in startup culture comes to the Upstate with Startup Weekend February 21-23 in Spartanburg. Individuals pitch ideas, form teams, present projects and compete for prizes over 54 intense hours. The event was formed by a Seattle-based nonprofit and has since spread to more than 200 cities worldwide where local organizers have brought the event to their communities using the same basic model. Kate McCarthy, an organizer, said many in the tech community are expected to participate, but the forum is open to all ideas. “If you want to pitch a hot dog stand, you can pitch a hot dog stand,” she said. Ideas must
be for brand-new ventures, however. Organizer Cate Ryba said food and mentors would be provided for the weekend. Potential prizes include in-kind services to help ideas get off the ground. “We will have some sweet swag from Amazon and Google and tons of local food and brews,” she said in a statement. “This is going to be a great event for Spartanburg.” Judges include Matt Dunbar, managing director of the Upstate Carolina Angel Network; Scott Cochran, dean of The Space at Wofford College; Peter Barth, CEO of The Iron Yard; and Jack McBride, CEO of Contec. More information is available at spartanburg.startupweekend.org.
By BRAD WYCHE
Doing Well by Doing Good In the quick sound-bite, us-versus-them world in which we now live, a widely held belief has arisen: Protecting the environment is bad for the economy. But that’s a myth. We can have it both ways – environmental protection and economic prosperity. There are many examples proving the point. Here are just five:
equivalent of conserving 325 million gallons of gasoline and 12,000 rail cars of coal. Conservation-oriented development reduces infrastructure costs and increases profits. In the Upstate, with the population increasing at the rate of 42 people every day, continued development is inevitable. But by using conservation principles in designing projects, developers can reduce both environmental impacts and infrastructure costs. A study in South Carolina evaluated the economic and environmental costs of two different residential subdivision designs very similar to those shown below; both accommodated the same number of houses.
green space. Companies in search of new locations and workers in search of new jobs will avoid places with a poor or declining quality of life. Sadly, the Upstate’s quality of life is gravely threatened by poorly planned growth that is consuming the region with spread-out developments and massive seas of asphalt. According to a Clemson University study, our region lost over 700,000 acres of its forest cover from 1992 to 2010 – the equivalent of Greenville and Cherokee Counties combined. (Replanted areas aren’t included in this figure). But the good news is that there are proven policies, programs and incentives that can manage growth effectively and keep our air and water clean Wildflower meadow
Primary conservation areas
Trails Future street extension Knoll with large white oak
lt Powe lls Ro
on Fa ad
Parks, natural areas, greenways and trails increase property values and business profits. Numerous studies show that properties adjoining or in close proximity to parks and natural areas are worth
The Three R’s – reduce, reuse and recycle – improve the bottom line. You can save lots of money by reducing what you buy, reusing what you already have and recycling what you no longer need – a strategy known in short as the “Three R’s.” It’s a classic win-win that avoids pollution from expanded and new landfills and incinerators and lowers purchasing and disposal costs for individuals and companies. Again we have great examples right here in the Upstate. BMW uses methane gas from the Palmetto landfill to supply most of the power for its Greer plant, and Milliken recycles 98 percent of all its waste and has reduced the use of chemicals by 88 percent over the last 10 years. An encouraging sign is that the recycling industry in South Carolina is booming. Since 2006 this industry has invested $4 billion in the state, providing 21,000 jobs. Recycling activities in 2012 alone represented the a lton F Powe
Green buildings reduce operating costs and increase employee productivity. Over the last 10 years we have witnessed an exciting increase in the number of buildings (new and renovated) that meet well-accepted green standards, such as LEED (Leadership in Energy and Environmental Design) and EarthCraft. These buildings use 30 to 70 percent less energy, sell and lease faster and at higher prices and rates, reduce employee absenteeism by over 15 percent and improve employee productivity by over 6 percent because they are such nice and healthy places to work. Think of the huge positive impact of those percentages on a company’s bottom line. At Upstate Forever’s LEED Platinum office in Greenville, we use 80 percent less energy than the same building, traditionally designed and constructed, would consume. So these savings translate directly into more funding for our work. By the way, all UBJ readers are cordially invited to visit our office at 507 Pettigru St. and see the amazing array of energy-efficient and environmentally friendly technologies and features. I’m sure you’ll be inspired to use some of them in your own office or home. So you’ll save money while helping keep our air and water clean.
more and appreciate in value faster than comparable properties located farther away. The reason is obvious: Most people are willing to pay more to live next to green space. In addition, trails and greenways increase property values and profits for trailside businesses. We have a great example of this right in our backyard: the spectacularly successful Greenville Health System Swamp Rabbit Trail. The SRT had over 400,000 users in only its second year of operation and has attracted several new businesses focused on serving these users. Trailside businesses reported an amazing average increase of 47 percent in sales from the first to second year of the SRT’s operation. Travelers Rest, reinvigorated and transformed by the SRT, now boasts: “TR Means Trail.”
The study concluded that the traditional design in which almost the entire tract is developed produced 43 percent more runoff, 60 percent more chemical pollution and three times more sediment, and it cost twice as much to build – in short, more adverse impacts on both the environment and the developer’s pocketbook. Quality of life and economic development are inextricably linked. Essential elements of a high quality of life include vibrant communities, clean air, clean water, and plenty of
January 31, 2014
and our quality of life high. All that is needed is the political will, mainly at the County Council level, to adopt and implement them. I can think of no better way to conclude than to quote the great Ray Anderson, former chairman of Interface Carpet and one of the pioneers of the sustainability movement: “You can do well by doing good.”
Brad Wyche is the executive director of Upstate Forever and can be reached at bwyche@upstateforever.
UPSTATE BUSINESS JOURNAL 11
UBJ YOUR MONEY
New Real Estate Opportunities in the New Year Take advantage of new Abandoned Buildings Act and Tangible Property Regulations The new year brings new opportunities for the real estate community and those who own commercial property in South Carolina. The impact of the recently released South Carolina Abandoned Buildings Revitalization Act will allow a South Carolina tax credit for up to 25 percent of the expenses incurred to redevelop an abandoned building. The incentive starts for projects completed in 2014 through 2019, and should be considered when determining net cost or whether to pursue a rehabilitation project. Also released in 2013 were federal Tangible Property Regulations (TPR), which will affect capitalization policies for businesses in 2014 and beyond. Both the South Carolina
Abandoned Building credit and TPR are facts- and circumstances-based. Here’s an overview of how the Act and final Tangible Property Regulations are affecting real estate property holders in South Carolina.
Abandoned Buildings Credit
The South Carolina Abandoned Buildings Revitalization Act created new tax incentives for rehabilitating, renovating and redeveloping qualifying abandoned buildings beginning in 2014. To qualify for the credit, the abandoned building or structure must have been continuously closed for business, or non-operational for income-producing activity, for a period of at least five years preceding
the date on which the new owner files a Notice of Intent to Rehabilitate (NIR). The NIR should be filed before any expenses have been incurred at the building site. To qualify for the credit, the taxpayer must incur these expenses: • More than $250,000 must be spent for qualifying buildings located in unincorporated counties or municipalities with populations of greater than 25,000 (in most recent U.S. census). • More than $150,000 must be spent for qualifying buildings located in unincorporated counties or municipalities with populations of at least 1,000 but not more than 25,000.
• More than $75,000 must be spent for qualifying buildings located in a municipality with a population of less than 1,000. There are also certain applicable limitations on the amount of the credit the taxpayer may receive. A taxpayer may claim up to a 25 percent South Carolina credit for qualifying expenses. The credit will offset a taxpayer’s South Carolina tax liability dollar for dollar up to 50 percent of the total liability with the balance carrying forward. The credit is also transferrable to other taxpayers, making it favorable for real estate developers. Taxpayers who wish to utilize this credit >>
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12 UPSTATE BUSINESS JOURNAL
January 31, 2014
By MARK COOTER
should understand the other requirements to qualify and how they relate to a specific site.
Also issued in late 2013 and coming into effect in the New Year is the final Tangible Property Regulations (TPR) Act. This comprehensive regulatory package not only changes the rules regarding whether costs are required to be capitalized or expensed, but it also affects the tax treatment of acquisition, improvement and disposition costs for all tangible property, including buildings. Tax authorities view the new regulations as favorable to taxpayers, containing de minimis expensing safe harbor rules for costs that meet certain requirements. Whether property is leased or owned, companies will need to make changes to their current capitalization policies to avoid the risk
of noncompliance. These changes need to be effective as of Jan. 1. The final TPR contain rules for: • Materials and supplies • Capitalization of improvements/unit of property definitions • De minimis threshold • Dispositions/retirements of building components (proposed)
What to Do Now
The complex rules surrounding compliance and possible necessary changes to your accounting methods will require strategic planning to take advantage of these tax savings. Three suggested action items when addressing the Abandoned Buildings Revitalization Act and TPR would be to: • Prioritize – Put in place written policies and procedures as soon as possible at the beginning of this tax year. • Identify opportunities – Take a look at the structural building com-
ponents to see where action could take place to provide tax savings. • Create a timetable – Many of the regulations associated with the South Carolina Abandoned Buildings Revitalization Act or Tangible Property Regulations are complex and will take time to understand. Those with a proper timetable and those who will be able to put in the effort will receive the most favorable changes under these new regulations. Consult with your tax advisor before implementing any strategies associated with the South Carolina Abandoned Buildings Revitalization Act or Tangible Property Regulations. Mark Cooter serves as the managing partner of Cherry Bekaert’s South Carolina Upstate practice, where he is responsible for executing the growth and branding strategy for the state of South Carolina.
EXPERT COMMENTARY FROM LOCAL BUSINESS LEADERS The Upstate Business Journal welcomes expert commentary from business leaders on timely news topics that relate to their specialties, especially little-known but significant issues they feel are pertinent to business readers. Our guest columns run 700-800 words and we welcome supporting art that will help explain your points graphically. Please contact Executive Editor Susan Clary Simmons at ssimmons@ communityjournals.com if you are interested in submitting an article for consideration.
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January 31, 2014
UPSTATE BUSINESS JOURNAL 13
By Claire Rozeman, Smoak Public Relations
UBJ THE TAKEAWAY
Strive to Be Significant
Dan Sterling and Edwin McCain discuss setting goals, accepting failure and never slowing down Despite working in different in-
ers of what they want to not working hard enough. Just never make the same accomplish. If you have difficulty mistake twice.” turning your thoughts into McCain added that your concrete goals, McCain ability to ask for help is in suggested that “goals direct proportion to your should be outrageous, but success. The positive people tempering your expectayou surround yourself with tions is key.” are always your biggest allies. Both presenters encouraged entrepreneurs to share Understand Your Business DAN STERLING EDWIN MCCAIN and Your People their goals with someone who can act as an accountability they can – they’re doing it!” Both businessmen repeated the saying “I do business with people” Write Down Your Goals partner. It’s hugely beneficial to have someone who can push you to attain Sterling and McCain agreed that Accept Failure and Move On throughout their presentation. Learnsetting goals should be an entrepreyour goals. Sterling said, “I’m completeSterling delivered a poignant piece ing how to positively interact with neur’s first priority. Sterling suggestly unreasonable and unrealistic. I set of advice during his presentation: peers, co-workers and employees is a goals [for my sales people] that they ed that entrepreneurs write down “Don’t strive to be successful, but sig- hugely significant element in being a goals, making them tangible reminddo not believe they can accomplish, but nificant.” As entrepreneurs, both Ster- successful businessperson. ling and McCain understand that McCain said, “The only way to truly things don’t always go the way you hope learn a business is to go and do the or expect. But Sterling believes that “if hardest job there.” you didn’t make a mistake today, you’re If you own a company and you really LEADERSHIP SERIES want to make progress, Sterling said to PRESENTS lead, not manage. “Get out there with the troops and make things happen.” EVENT: Successful Entrepreneurship Series Keep Moving Forward @ Greenville Tech “If you don’t have a sense of urgency, you’re dead.” While this idea of SterPresident WHO WAS THERE: ling’s may seem extreme, he explained 2014 Spring Successful Hughes Development Corporation that as a teenager he was introduced Entrepreneurship Series to the book “Rhinoceros Success,” members written by Scott Alexander. The book explains how to approach life and TOPIC: Business Practices business like a rhinoceros. Being a 3:00-5:00 Open House to Live By rhinoceros means always waking up 5:00 Presentation · 6:00 Networking Reception in the morning ready to charge, and SPEAKERS: Dan Sterling, Sterling said this is how he lives his Green Cloud Technologies life every day. He credits his accomplishments and success to learning Edwin McCain, nationally how to “start the day going fast and acclaimed singer-songwriter Attending First Friday is free, but space is limited! never slow down.” dustries, Dan Sterling, president of Green Cloud Technologies, and Edwin McCain, a nationally acclaimed singer-songwriter, have very similar views on how to approach business and be a successful entrepreneur. During this Successful Entrepreneurship Series event, both men shared their distinct perspectives on the business practices they live by and the keys to successful entrepreneurship.
BOB HUGHES FEBRUARY 7
1 North Main Street 5th Floor
register at FirstFridayHughes.eventbrite.com
The Successful Entrepreneurship series is an innovative program developed by Serrus Capital Partners that inspires and encourages individuals to develop ventures that benefit the community. A group of industry experts share their experiences and insight, offering proven advice on how to successfully foster business success. Topics include marketing, social media, financial and accounting basics, human resources, leadership and international business. For more information, visit successful-entrepreneurship.com.
14 UPSTATE BUSINESS JOURNAL
January 31, 2014
F O C U S
C O M M E R C I A L
R E A L
E S T A T E
Strong Finish for CRE in 2013 By Sherry Jackson | staff | email@example.com
Results are in for the fourth quarter
OFFICE STATS ON THE GO
of 2013, and quarterly commercial real estate market reports just released show that industrial, office and retail sectors finished out the year strong, and area commercial real estate firms expect an upward trend continuing in 2014.
Y-O-Y 12 MONTH Q4 2012 Q4 2013 CHANGE FORECAST Overall Vacancy 8.7% 7.0% 0.9pp ▼ Direct Asking Rents (psf/yr) $13.82 $17.85 -3.8% ▲ YTD Leasing Activity (sf) 910,314 946,424 16.2% ▲
The Upstate industrial market is still showing improvement and rounded out the fourth quarter of 2013 with a positive absorption rate, and the lowest total vacancy rate (8.4 percent) seen in years, according to the Colliers market and forecast report. The region continues to attract manufacturers and distribution companies through county tax incentives, logistics support from the Inland Port and a skilled labor force. Colliers also states that construction is gaining momentum with several industrial speculative buildings announced and new companies entering the market.
has come to the forefront as available class A space has declined, says the Cushman & Wakefield Thalhimer report. Rental rates in the industrial market have continued to rise as well, reports Lee and Associates. At the end of the fourth quarter 2013, the average quoted price was $3.24 per square foot, representing a 0.6 percent increase compared to third quarter 2013. Lee and Associates also reports the largest industrial projects currently underway are a 300,000-square-foot building at 3288 N. Old Laurens Road and a 120,000-square-foot building at U.S. Highway 123 in Liberty for Taylor Made Gold.
INDUSTRIAL MARKET VACANCY RATES 10.00% 9.00% 8.00%
9.0% 8.7% 7.8%
5.00% 4.00% 3.00% 2.00% 1.00% 0.00%
Graphs provided by Colliers, Cushman & Wakefield | Thalhimer, and NAI Earle Furman.
A new 108,000-square-foot spec building by Atlanta-based Pattillo Industrial Real Estate is expected to break ground soon in Spartanburg County. Also in Spartanburg County, Corporate Center is adding 100,000 square feet of Class A space to its existing park. Construction also continues on the 156,000-squarefoot Class A spec building at Caliber Ridge Industrial Park in Greer being developed by Liberty Property Trust. Demand for build-to-suit buildings
According to Grice Hunt, industrial division broker with NAI Earle Furman, re-shoring, technology and demand-driven supply are what’s driving the market into 2014. NAI’s report shows that the overall vacancy rate is 8.1 percent with 4,016 buildings and 14.4 million square feet in overall vacant space.
Keith Jones and Stuart Wyeth, office division brokers with NAI Earle
improvements with vacancy rates declining and rental rates increasing.
In the retail sector, “growth” was the key word for most retailers, according to Jimmy Wright, retail division broker at NAI Earle Furman. Redevelopment in markets like Clemson Boulevard in Anderson, Haywood and Woodruff roads in Greenville and W.O. Ezell Boulevard in Spartanburg will continue. Diversification of retailers like WalMart through its neighborhood market and Wal-Mart Express should also continue, according to Wright, along with expansion of retailers such as Sherwin-Williams. The Greenville retail market ended 2013 with an occupancy rate of 90.73 percent, said the Colliers report, with big-box closings leading to an increased availability of anchor space, mostly in the eastside and Haywood Road submarkets, but spaces are being backfilled by new tenants. Part of the former K-Mart on Wade Hampton Boulevard has been leased to Planet Fitness and Ollie’s Bargain Outlet with 50,000 of the 104,000 square feet remaining. Conn’s, an electronics and appliance store chain headquartered in The Woodlands, Texas, plans to occupy the former Babies R Us location on Haywood Road. Completion of contemporary, upscale space such as the ONE project downtown and the renovations and construction at Magnolia Park are all contributing to Greenville becoming a shopping and dining destination, according to Lee and Associates.
Furman, report the office market in the Upstate is very active. Both the suburban and central business district submarkets have approximately 10,000,000 square feet of for-lease multi-tenant office space. A good portion of the activity in the suburban market is centered on tenants seeking to move from Class B properties to Class A properties. Within the central business district, the NAI Earle Furman report says that small companies are showing more interest to be located near 24-hour amenities. Greenville Health System is expected to expand its 300 E. McBee Ave. location, backfilling space vacated by Smith Moore Leatherwood when it moved to new space at ONE. The largest transaction in the office sector was the sale of Highwoods in Greenville. Eight buildings, which included the Patewood Business Park, totaled 697,771 square feet and sold for $58.2 million dollars in December 2013, according to the Lee and Associates report. Vacancy decreased in the office market to 7.1 percent, decreasing for the fifth consecutive quarter. Lee and Associates reported a positive net absorption rate of 411,370 square feet in the fourth quarter 2013. Class A space was a positive 125,159 square feet and Class B was at 162,151 square feet. Cushman & Wakefield ThalQ4 2013 RETAIL SECTOR himer reported that asking Number of Buildings 9,488 rents continued to rise, espeMarket Size (sf) 82,471,212 cially in the central business Overall Vacant Space (sf) 5,556,801 district with an average of $19.88 per square foot for Class Overall Vacancy (%) 6.7% A buildings. Direct Vacancy (sf) 5,276,309 With the ONE building Sublease Vacancy (sf) 280,492 almost at full occupancy, ColNet Absorption 280,151 liers predicts that the Greenville Average Asking Rental Rate($/sf/yr) $9.20 office market will show further
January 31, 2014
UPSTATE BUSINESS JOURNAL 15
Inside Commercial Real Estate Designations What do all those letters after those names mean, how do they get them – and are they worth it? By Sherry Jackson | staff | firstname.lastname@example.org
In the competitive market of commercial real estate, having a designation after your name seems almost commonplace. But what do these letters mean, what does it take to get them and are they worth it?
Designation: CCIM – Certified Commercial Investment Member What does it mean? According to the CCIM Institute, a CCIM is considered to be a recognized expert in the commercial and investment real estate industry. This includes brokers, leasing professionals, investment counselors, asset managers, appraisers, corporate real estate executives, property managers, developers, institutional investors, commercial lenders, attorneys, bankers, and other allied professionals. A CCIM is part of a global commercial real estate network with members across North America and more than 30 countries. The experts who possess the CCIM designation can serve as a resource for commercial real estate owners, investors and others. A spokesperson for the CCIM Institute says that more than 15,000 commercial real estate professionals have earned the designation to date and 5,500 professionals are pursuing their CCIM designation.
Local Upstate members? There are more than 200 CCIM
What is the cost?
professionals in South Carolina and approximately 60 members in the Upstate.
CRE has a one-time initiation fee of $2,500 and an annual fee of $1,750. There are three conferences each year: two in the U.S. and one international.
What does it take to get? A CCIM lapel pin is earned by completion of a curriculum that covers essential CCIM skill sets including ethics, interest-based negotiation, financial analysis, market analysis, user decision analysis and investment analysis for commercial investment in real estate. CCIMs have also completed a portfolio demonstrating the depth of their commercial real estate experience. Finally, they have demonstrated their proficiency in the CCIM skill sets by successfully completing a comprehensive examination.
What is the cost? There are different levels of membership. For an Institution membership, which is for those pursuing the CCIM designation, there is a $595 application fee. Courses are required and run from $1,000 to $1,500. There is a $275 examination fee and a one-time initiation fee of $1200. Annual dues are $595.
Is it worth it?
Designation: CRE – Counselor of Real Estate What does it mean? The Counselor of Real Estate is a member of The Counselors of Real Estate, an international group of recognized professionals who provide advice on real property and land-related matters. There are only 1,100 practitioners throughout the world who carry the CRE designation. Membership is by invitation only. Alice Muncaster, director of marketing and communications for The Counselors of Real Estate, says that most members are not brokers, which is different from some of the other CRE organizations. CRE members come from a wide variety of specialties in different aspects of commercial real estate. “It’s a very diverse group of people that are deeply experienced in what they do,” she says.
Is it worth it? Yes, says Ted Lyerly, 2014 president of the South Carolina chapter. “You can gain the latest commercial real estate investment analysis education available, and it serves as a networking forum to generate additional business,” he says. Lyerly says it also helps agents distinguish themselves among the other commercial real estate brokers as someone with experience and knowledge as well as provides access to cutting-edge technology for gathering market information on sites such as demographics and competitive business locations.
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January 31, 2014
Local Upstate members? There are 1,100 members worldwide. In the Upstate, members include Terrence Farris and Steve Navarro.
What does it take to get? Prospective CRE members can either apply or be recommended but must have been in real estate for at least 10 years. Applicants must demonstrate values of integrity, trust and a high level of ethics. Members must provide counseling services within their specialty.
Muncaster says the organization is really more of a community, and the main benefit is that members get “access to people like themselves, which lead to different levels of conversation than they may find elsewhere.”
Designation: SIOR – Society of Industrial and Office Realtors What does it mean? The Society of Industrial and Office Realtors (SIOR) maintains “a designation for those industrial and office real estate brokers who meet the prerequisites for memberships,” says Executive Vice President Richard Hollander. Members must meet pre-education, experience, annual transaction volume, recommendations, a high level of integrity and code of ethics requirements to become a member. Hollander says that the organization’s members are the top 20 percent of industrial and office realtors worldwide. SIOR has more than 3,000 members in 34 countries and is in 680 markets. The organization was founded in 1941 and recently has been growing internationally, >>
>> expanding into Europe, Asia and Latin America. Local Upstate members? There are 72 members in South Carolina. Upstate members include Elizabeth Belenchia, Robert Benedict, Kevin Bentley, P. Randall Bentley, Ford Borders, Bill Burgess, Terrence Farris, J. Earle Furman, Hunter Garrett, Jonathan Good, Charles Gouch, Michael Greer, Grice Hunt, Scott Jones, John Perry Major, Robert Shaw, Stephen Smith, Tom Springer, Givens Stewart, Stuart Wyeth and Brian Young.
What does it take to get? Prospective members can go online to sior.com to fill out an application. Applicants must also have recommendations from current SIOR members. Applications are reviewed by the local chapter, which also conducts an ethics review.
cialist with the Realtors Land Institute. Noble says the organization has a strenuous education program and accredited members must have a proven track record of performance and commitment to the profession. RLI has approximately 1,000 members, with 415 of those accredited land consultants. Members range from land specialists involved in brokerage, sales, consulting, appraisal, development, site selection, marketing, and management of a large range of land property, such as agricultural land, ranches, recreational land, hunting property, timberland, underdeveloped tracts of land, and special purpose properties.
Local Upstate members? Upstate members include Bob King, Matthew Holiday, Rob Metcalf, Rod Rogers and Steven Smith.
What does it take to get? What is the cost? There is an application fee of $175. If accepted, there is a one-time initiation fee of $725 which includes cost of the first conference. First-year dues are prorated. Active members have an annual fee of $1,280 per year. SIOR holds two conferences per year, in the spring and fall.
‘Banner Year’ for Housing in SC By Sherry Jackson | staff | email@example.com
“It was a banner year,” according to the 2013 annual housing market report released last week from the South Carolina Realtors Association. According to the report, nearly every metropolitan housing market embarked upon or continued along the road to recovery. Local and regional markets once burdened by excessive supply levels and heavy foreclosure loads have given way to multiple-offer situations, homes selling in record-low market times and prices rallying to multi-year highs. Many local markets transitioned from
buyers’ markets to sellers’ markets. The Greenville area “remained pretty steady,” said Nick Sabatine, president of the Greater Greenville Association of Realtors. New listings in the Greater Greenville area were up 10.5 percent and closed sales were up 23 percent at 9,463 units. Of those 9,463, 7.6 percent were condos, 10.5 percent were two bedrooms or fewer, and 23.5 percent were in the $100,000 or less range. Inventory increased to 3.6 percent while the days on market decreased 11.9 percent to 89 days.
There are three required courses that total 56 hours, says Noble. Applicants are also required to take 48 elective course hours. RLI also offers a fast-track program for those with other designations or a degree in real estate that eliminates the elective coursework. In order to apply for a designation, applicants must be a member in good standing for at least six months.
Is it worth it? Relationships developed have led to lifelong friendships, says Hollander. There is also “an enormous amount of referral business” generated by the connections made through the organization.
Designation: ALC – Accredited Land Consultant
What is the cost? For new members there is an application fee of $75. Annual dues are $445. Course fees vary and the exam fee is $100. There is a one-time initiation fee of $350 once designation requirements are met. The organization holds an annual conference each year – in 2014, it will be held in Charleston, S.C.
What does it mean?
Is it worth it?
The Realtors Land Institute offers an Accredited Land Consultant (ALC) designation to “the most accomplished and the most experienced in the business,” says Kate Noble, communications and membership development spe-
Noble says that networking is the biggest benefit, citing an example of two ALC candidates in Colorado who just closed a $17 million deal through RLI member referrals. “The connections are invaluable,” she says.
January 31, 2014
UPSTATE BUSINESS JOURNAL 17
Veteran Opinions Upstate commercial real estate leaders talk land, industrial, retail and office By Sherry Jackson | staff | firstname.lastname@example.org
In our first commercial real estate-themed issue of 2014, the Upstate Business Journal reached out to four industry veterans to get their takes on the current state of the Upstate industrial, retail, office and land commercial real estate markets.
L AND OUR EXPERT: JUSTIN HIRSCH, SENIOR ASSOCIATE AT CBRE THE FURMAN COMPANY
Where is the activity as far as land goes in the Upstate? Are there large blocks available? What are the submarket areas? The majority of land sales activity in the Upstate right now is in the residential development arena. Both single-family subdivisions and multifamily (apartment) communities have seen a major comeback since the economic collapse of five or six years ago. Acquisition and development financing is still a challenge for single-family residential developers. But I understand that several lenders are getting back into the A&D loan business, which will hopefully allow us to meet new housing demand in our area. Experienced multifamily developers are not having any trouble financing quality projects right now. Commercial development activity is lagging behind residential, but it also seems to be on the upswing. There are still large tracts of land
available for development, but the prime sites are becoming more scarce. There are very few sites currently available that have all of their development entitlements in place (zoning, utilities, design approval, etc.). This means that most sellers will have to be more patient with contract timelines, so that developers can get their entitlements in hand prior to closing.
What are the rates like for land values? Are they higher or lower? Are they expected to rise? Land values have seemed to stabilize over the last couple of years, after some rapid decline in values from 2008-2010. You could even make the case that land values are actually rising now, just at a slower, more sustainable rate than we saw in the early to mid-2000s. As residential and commercial development activity continues to pick up over the next several years, I could see a steady increase in land values.
What kinds of concessions are being given right now? Landowners with good infill property are not having to concede much of anything in their contract negotiations right now. There is strong demand for quality infill sites, so if the first buyer doesn’t want to pay a seller’s price, that seller can just move on to the next buyer in line. For other, more suburban sites, with a lot of competing land around them, sellers probably won’t be able to get the price they were offered years ago. And they will probably have to agree to give the buyer a longer contract period, so they can have ample time to get the entitlements and run the development analysis that they need.
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January 31, 2014
OFFICE OUR EXPERT: DAVID FEILD, PRESIDENT, COLLIERS INTERNATIONALGREENVILLE
Where is the activity in commercial office space? Are there large blocks available? What are the submarket areas? There is significant office activity in both the Central Business District and the Suburban Submarket. Greenville’s CBD absorbed approximately 38,000 square feet of office space during the fourth quarter of 2013. The CBD continued to receive attention through the fourth quarter with several announcements of hotels and multifamily projects. The development of hotels and apartments in the CBD combined with new retailers and restaurants entering the market will provide strength to our office market. A vibrant downtown and healthy economic environment is attractive to tenants looking for office space. The suburban office market saw a significant uptick in sales activity. Large, contiguous amounts of available office space are still available, although absorption is trending up and we expect this trend to continue. It should be noted that in both the CBD and Suburban markets the number of available large blocks of Class A office space is fewer than those of Class B or C. The Greenville Area Development Corporation announced plans to increase its focus on engineering, finance and information technology firms, which are already strong and present in our region. Successful recruitment of firms in these sectors will be beneficial to the area office market as these are primarily office using firms.
What are the rates like for vacancies and occupancies? Are
they higher or lower? Are they expected to rise? The Greenville office market ended the fourth quarter of 2013 with a lower total vacancy rate and with positive absorption. The total vacancy rate for the market dropped to 17.95 percent at the end of the fourth quarter from 20.18 percent during the third quarter. Average asking rental rates were up to $17 per square foot per year at the end of the fourth quarter, better than the $16.59 rate at the end of the previous quarter. This increase in rental rates for deals that have been completed are allowing landlords to increase their asking rates for vacancies. With construction of office space still minimal, particularly in the suburban market, this increase in rates should continue.
What kinds of concessions are being given right now? Landlords are still offering limited free rent to entice credit-worthy quality tenants to move to their buildings. The size of concessions is getting smaller as the market improves.
INDUSTRIAL OUR EXPERT: BRIAN YOUNG, SENIOR VICE PRESIDENT, MANAGING BROKER, CUSHMAN & WAKEFIELD THALHIMER
Where is the activity as far as industrial space in the Upstate? Are there large blocks available? What are the submarket areas? In general, we have seen a real flight to quality as users have flocked to higher-quality space, thus eliminating almost all of the available Class A space. There are a few Class B and C buildings. Most of the industrial >>
BIG DEALS OF 4Q 2013
By Sherry Jackson | staff | email@example.com
Big commercial real estate deals are always happening here in the Upstate. Here is a sampling of some of the bigger deals that took place in the fourth quarter of 2013. TYPE
BUILDING NAME, SELLER BUILDING OR LANDLORD ADDRESS
SQUARE LEASED FEET OR SOLD
TENANT(S) OR SOLD TO
LEASE RATE OR SOLD LISTING AMOUNT BROKER
Office Patewood 201 Brookfield 690,000 690,000 N/A Not disclosed Cushman & and Brookfield Parkway Wakefield | Thalhimer
Industrial Common Wealth 40 Tyger 221,000 221,000 Exeter $9.7 million Cushman River Rd & Wakefield | Thalhimer
Industrial Guardian Building 5421 Hwy 25, 528,456 N/A Colgate $7.9 million Colliers Products Hodges SC Palmolive International (Givens Stewart and Richard Jackson)
Retail Plaza on Pelham 3935 Pelham 18,796 N/A N/A $5.67 million Jake Van Rd., Greenville Gieson, Bill Sims and Rob Schmidt of NAI Earle Furman
Peter Couchell, CCIM, NAI Earle Furman
Industrial James E. Cashion 800 SE Main St., N/A 77,064 Interkraft SC, N/A – Landlord Simpsonville LLC – Tenant
activity we are seeing remains along the I-85 corridor.
What are the rates like for industrial space? Are they higher or lower? Are they expected to rise? Class A space under 300,000 square feet has asking lease rates in the $4 per square foot range. Class B rental rates are between $3 and $3.75 per square foot. Generally, rental rates are rising and have risen since 2011.
What kinds of concessions are being given right now? We continue to see building improvements such as T5 lights, upgraded sprinklers, and other maintenance
upgrades. We are also seeing some free rent, 1-3 months depending on the lease term.
Randall Bentley N/A & Kevin BentleyLee and Associates
What are the submarket areas?
OUR EXPERT: JIMMY WRIGHT, PRINCIPAL AND BROKER, RETAIL DIVISION, NAI EARLE FURMAN
New activity has been occurring in major retail corridors such as Haywood Road and Woodruff Road in Greenville, W.O. Ezell Boulevard in Spartanburg, Clemson Boulevard in Anderson, and Main Streets in all three areas. Of these main areas, Haywood Road has the most room for continued growth or redevelopment. Submarkets such as Pelham Road in Greenville, Highway 9 in Spartanburg, Clemson and Greenville Street in Anderson have also increased activity.
Where is the activity as far as retail space in the Upstate? Are there large blocks available?
What are the rates like for vacancies and occupancies? Are they higher or lower? Are they expected to rise?
January 31, 2014
In 2013 we saw a moderate decrease in vacancies and a slight increase in occupancies. We expect the continuation of these trends at a similar growth rate of slow to moderate.
What kinds of concessions are being given right now? Concessions that we are seeing most frequently are some combination of: more tenant improvement dollars, where the landlord provides the tenant with an allowance to go toward building improvements; stairstep rent structures, where the rent gradually increases over the term of the lease; and free rent periods over several months for new tenants to get their business up and running.
UPSTATE BUSINESS JOURNAL 19
Magnolia Park Completion Expected This Year Shopping center is 95 percent committed, with 40 percent of businesses now open, developer says By Sherry Jackson | staff | firstname.lastname@example.org
Construction continues at Magnolia Park, the 550,000-square-foot retail behemoth strategically located at the intersections of Woodruff Road, I-85 and I-385, with new stores and restaurants slated to open soon. Many buildings are in various stages of construction, but “we expect everything to be open by the end of this year,” said Marc Yavinsky, executive vice president for Menin Development, a Palm Beach, Fla., company that has owned the shopping center for the past seven years. Cabela’s, a specialty retailer of outdoor merchandise, is expected to open by the end of March, and Golfsmith, a golf and tennis specialty retailer, is looking at a February opening. New tenants at the center previously announced include Nordstrom Rack, Toby Keith’s I Love This Bar and Grill, Dave and Buster’s, Yard House, Babaziki’s Mediterranean Grill and Allen Tate Realtors. Others that have recently signed leases include men’s clothing store Destination XL, Another Broken Egg Café, Beef Jerky Outlet, retail brokerage firm Scottrade, Tucano’s Brazilian Grill and Grimaldi’s Brick Oven Pizzeria. The existing movie theater, Hollywood 20, which is owned by Regal Cinemas, will be changing its signage to Regal Cinemas. The theater will also be painted so that it “conforms and ties together with the rest of the buildings,” said Yavinsky.
In front of the theater will be a large open plaza area where “people can hang out,” said Yavinsky. He said there will also be some sort of feature in the middle of the plaza area, perhaps a fountain, but it hasn’t been decided yet. The two restaurants that flank the theater will have large outdoor patio areas. And while the area that contains Sears, Old Navy, The Christmas Tree Shoppes and Bed, Bath and Beyond is not owned by Menin Development, Yavinksy said they are working closely with that owner since they share an entrance and common property. For many newer tenants, this marks the company’s first entry into the South Carolina market. Cabela’s, Nordstrom Rack, Dave and Busters, Yard House and Toby Keith’s will all be firsts in S.C. Cheddars, Firebirds and Bad Daddy’s
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January 31, 2014
Burger Bar also opened their first S.C. stores at Magnolia Park. Mainstays such as Costco, Rooms to Go, Toys R Us and Regal are doing “some of the top sales volumes in the state,” said Yavinsky, and that has attracted a lot of interest. Yavinsky says that the size and location of the shopping center creates “a regional drawing power that will bring people far and wide. Greenville is a dynamic community that these tenants want to have a presence in.” Menin is working with local Greenville developer Harper Corporation and leasing is being handled by Collett. “Even though we are located in Palm Beach, Greenville has been a great
place to work and develop relationships with the local community,” Yavinsky said. Several other leases are in the works and announcements are expected to be made soon. Yavinsky says the center is about 94 percent committed with about 40 percent (of the tenants) open and operating. “Magnolia Park will be a place for everyone, with a unique group of tenants that don’t exist anywhere else in the state,” said Yavinsky. “There will be a good lineup of restaurants, entertainment venues and retailers, which means there will be something for everybody.”
Office Space Without the Overhead Regus has international market for a la carte business services By Sherry Jackson | staff | email@example.com
Touted as a new way to work, shared flexible office space is becoming a popular option, especially as businesses become more mobile. Entrepreneurs and startup companies can immediately have a professional office environment to work in and greet clients, all without the high overhead expenses and long-term leases. With 1,800 locations in 600 cities across 100 countries, Regus, which was founded in Brussels, Belgium, and is based in Luxembourg, is considered to be the largest and one of the top companies in the world that delivers executive office space. The company recently opened its second Greenville location on the fifth floor at NOMA tower, 220 N. Main St. Its other location at Millport Circle and Butler Road in Greenville opened in March 2013. “As the revitalization of Greenville continues, demand for our a la carte business services increase,” said Donna Scott, Regus’ regional vice president. “Professionals in the market are looking for space they can tailor to their specific requirements.” On the fifth floor of NOMA tower, glass doors give a glimpse into sleek, modern offices, but there is no signage indicating it’s the Regus offices – and that’s by design. “We don’t want the Regus brand to stand out; we’re an extension of all of our clients,” says Denita Kozeny, Regus general manager of the NOMA tower location. Nora Heatherly and Charles Braden round out the three-person support staff and serve as Regus’s first-line greeters once you enter the doors. Regus clients will let them know when their appointments are due, and Heatherly and Braden will greet the appointments by name. “It’s all in an effort to make customers and clients feel welcomed,” says Kozeny. The Regus team also answers phone calls tailored to each of their clients. “It’s amazing what three people can get done. We make a really strong team.”
One of Regus’ selling points is that all employees go through Regus’ “school of excellence training.” This allows each location worldwide to operate the same way so clients know what to expect, whether they are walking into a location in Greenville or Brussels. All Regus customers receive a business world gold card giving them access to any Regus location worldwide, where they can take advantage of daily and commuter office space while traveling. Other small touches provide a level of sophistication and executive care to Regus customers as well, like the gourmet coffee at the refreshments bar and a stocked service pantry with white
china coffee cups and dishware provided (which Regus staffers clean up). Standard office amenities are available, too, like Internet, FedEx service, video conferencing, copiers and conference rooms. Clients can even work with Regus staff members to order office supplies or provide catered lunches for meetings. All 70 Greenville offices come equipped with ergonomic furniture, telephones and even artwork on the walls. Office options range from a virtual office plan that offers a business address for mail, telephone answering, mail forwarding and preferred rates on offices and meeting rooms to private,
January 31, 2014
team and project office configurations. Customers include a wide range of businesses, from accounting professionals, financial advisors, engineers and lawyers, to companies that want a presence in Greenville without a full office team or even larger businesses that may not have enough space for employees or may be building out new space that isn’t quite ready yet. Regus also partners with commercial real estate and residential brokers for referrals and offers a 10 percent com-
mission. “It makes a good synergy between us,” says Kozeny. Current tenants and others are offered referral bonuses.
UPSTATE BUSINESS JOURNAL 21
Plan for The Gallery at Falls Park, designed by Clemson MRED team Mills Armstrong, Sheppard Benjamin, Katelyn Graham, Darren Pellegrin and John Roberson.
What’s the highest and best use for this 31-acre patch of prime downtown real estate?
THE FUTURE OF
By Sherry Jackson | staff | firstname.lastname@example.org
With the economy improving and recent announcements of new development projects downtown such as hotels, apartments and retail, Greenville is once again wondering what will be done with the sprawling, 31-acre County Square property. It’s no secret or surprise that the former Furman University site-turned-Bell Tower shopping-mall-turned-county-government-offices at 301 University Ridge is somewhat of an eyesore. “The facility now is dated and not the most efficient use for county offices. We can do better,” said Greenville County Administrator Joe Kernell. Greenville County and the city of Greenville are both contemplating the potential highest and best use for the property. “Highest and best use” is a concept in real estate appraisal that demonstrates how the highest value for a property is achieved and what – according to The Appraisal of Real Estate – is “the reasonably probable and legal use of vacant land or an improved property, which is physically possible,
22 UPSTATE BUSINESS JOURNAL
appropriately supported, financially feasible, and that results in the highest value.” The county square property “is such a great opportunity,” said Doug Harper, who leads Harper Corporation, a local general contracting firm. “It’s unusual to have such a large tract of land” potentially available within a city. A native Greenvillian, Harper says he has seen the property go through the various stages of transformation over the years. Kernell said that the county has considered several different suggested uses for the property over the years, but probably the most comprehensive planning exercise for the property to date comes from the 2012 graduate class of the Clemson Master of Real Estate Development (MRED) program.
“Bright Kids” Take On County Square
Clemson’s 10-year-old MRED program is one of only nine or 10 such programs in the country. The two-year, full-time graduate program offers a joint
January 31, 2014
degree between Clemson’s architectural and business schools with project-based curriculum that graduates can apply in the working world. “It’s a good program and somewhat unique,” said Kernell. “There are some bright kids in that program.” The program accepts 15-20 new students each year, and required classes include finance, law, construction science and management, architecture, city and regional planning and real estate development. Each second-year class is divided into four teams and given a practicum project that focuses on a “highest and best use” property or area. Projects are not always located in South Carolina, but are usually “within a two-hour drive of Greenville,” said MRED program director Robert Benedict. Previous projects have included Bull Street in Columbia, land near Biltmore Park in Asheville and Morris Brown College in Atlanta. The students choose a “company name” and are then required to do market and financial analysis, a site plan, history, site analysis and proposal, case studies of >>
similar projects, a project timeline, master development plan, housing profiles and land use plans. There’s no thesis or comprehensive exam, says Benedict. The project is all-consuming and competition is fierce. The students are given the assignment in September and present the completed project in April before a jury comprised of local leaders, developers and architects.
Bold Vision From Winning Plan
The presentations from the four teams that tackled County Square all proposed dense, mixed-use developments that took into consideration the current zoning of the property, which is planned unit development in the University Ridge Village Center Overlay District. Maximum height allowed in this district is six stories. All but one of the presentations included a six-story building for county offices. The winning presentation from MRED team Palmetto Property Partners – called The Gallery at Falls Park – proposed the integration of a new six-story, 300,000 square-foot county office building with an additional 1 million square feet of strategically placed mixed-use development along a new network of streets and sidewalks. According to the students’ plan, the development “cornerstones” include integrating the Greenville county office complex as “part of a thriving mixed-use district of downtown which will support and enhance the existing urban fabric of Main Street.” The proposal encouraged outdoor “living rooms” through the implementation of an extensive network of internal pedestrian walkways, public green spaces, alfresco dining options and outdoor residential amenities such as a rooftop pool area for condominium residents and hotel guests. Healthy living would be promoted for district residents and visitors through avenues such as the expansion of the Swamp Rabbit Trail along the site’s northern boundary. Neighborhood retail conveniences would be delivered to the surrounding neighborhoods of Haynie-Sir-
EACH HIGHEST AND BEST USE PLAN INCLUDED: • Development site work and analysis including site history, extensive analysis of existing site conditions including zoning, topography, environmental, utilities, floodplain/wetlands, accessibility and transportation. • Market analysis that looked at residential housing profiles, for-sale comparable properties, and absorption and capture rates, for rent comps, planned projects. Retail market analysis was also included with population stats, vacancy rates and market comparables. • Office market analysis included demand factors and submarket information. Hotel/Hospitality market analysis included revenues, market delineation and supply and demand analysis. • Case studies of other like projects across the country were also done providing documentation on the other projects successes, challenges and best attributes to imitate. • The comprehensive master development plans in each teams presentation included building programs, development strategies a phasing overview and land takedown schedule. The land use plan includes details on travel and leisure, green spaces, structured parking, residential, retail/office space. • Also included was an overall timeline of how the project could be completed. • Architectural typologies showing the vision for the design were included with photos from other similar projects that could be used for reference.
rine, Augusta Road and downtown Greenville and provide destination shopping and dining for the greater Upstate area. When completed, the proposed development would have the 300,000 square feet of county offices, 350 multifamily apartments, 90 condos, 15 townhomes, 217,500 square feet of retail space, 165,000 square feet of office space, and a 110-room hotel. Estimated timeframe for construction was five years. Financial analysis was another important component of the students’ assignment. Deal structures were
included with a purchase model approach that incorporated a public-private partnership for financing public infrastructure. It also included setting up a TIF (tax increment financing) fund. The Gallery at Falls Park total development costs was estimated at $260 million. Infrastructure costs came in at $16.5 million, annual tax-basis generated at full buildout were $2.2 million, total revenues to Greenville county were estimated at $31.1 million and total returns to Palmetto Property Partners approximated $14 million. A land basis of $850,000 per acre was used.
Affordable Living, Theater Also on Table
The second runner-up presentation, The Ridge at Falls Park, included a centrally located retail square that would serve as a focal point for the site. The proposal included plans to extend the city’s park network by offering additional park space on the development site with an added trail network. The third presentation, The Belfry, recommended a town center and entertainment districts at the center of the site, with roughly 72,000 square feet of retail at street level and three floors of apartments totaling 222 units above. The plan would also include a hotel and affordable housing for moderate to low-income residents. A six-floor county building and a war memorial were also proposed. The fourth presentation, Reedy South, would include a state-of-the-art amphitheater, an art house cinema with an outdoor screen, and a luxury 12-room hotel, along with retail, office, condos and apartments. It would also include 150 multifamily units, 29 condos, 350,000 square feet of retail space and 40,000 square feet of office space. Development costs totaled $121.6 million.
“The Sky’s the Limit” for Future Options
For now, Kernell says the county is continuing to ponder the future of the County Square property and what will make the most sense, but there are no concrete plans. “We’re taking a hard, hard look at it,” he said. “We’ll know more as the process develops.” Harper said it “behooves the county to be deliberate and careful with its planned uses. There are a lot of different activities going on there. It’s almost like the sky’s the limit with mixed-use, condos, hotels and maybe even a convention center. It has a lot of potential, but must be carefully considered and planned.” Next up, students in the 2013-2014 class have been “digging into” the Spinx Plaza area at East Washington Street and Laurens Road. Benedict says the teams are working hard on the projects, and the area most likely will include some sort of mixed-use development suggestions. PresenPlan for The Ridge at Falls Park, designed by Clemson MRED tations and judging are set for April 11 and will team Brien Buffington, Jacob be featured in the Upstate Business Journal’s Jackson, Adam Mitchell, Seth Robertson and Jimmy Williams. April 25 Commercial Real Estate Issue.
January 31, 2014
UPSTATE BUSINESS JOURNAL 23
UBJ THE FINE PRINT Greenville High Holds Law Week Greenville High Academy of Law, Finance and Business is holding its third annual Law Week, with the theme of law enforcement. The topics for law week include: police in action, federal law enforcement, criminal court procedures and the law in regards to prosecution and defending
individuals. On Jan. 31 at 10:30 a.m., Greenville Police Department Chief Terri Wilfong is the keynote speaker in the school auditorium. Parents and community members are invited to attend and should call Pam Player at 864-355-5518 for more information.
HomeTrust to Acquire Tennessee Company Asheville-based HomeTrust Bancshares Inc. recently announced it will acquire Tennessee’s Jefferson Bancshares Inc. The deal will make HomeTrust worth around $2.1 billion in assets by adding Jefferson’s more than $498 million in assets and 12 banking offices. The company entered the Upstate market last year with its acquisition of BankGreenville Financial Corp. in a stock deal valued at $7.8 million. HomeTrust Bancshares is the holding company for
HomeTrust Bank and operates 20 offices in western North Carolina. The company has also previously merged with Tryon Federal Bank, Shelby Savings Bank, Home Savings Bank, Industrial Federal Bank, Cherryville Federal Bank and Rutherford County Bank of North Carolina.
Baldor Electric Announces $15M Expansion in Anderson Baldor Electric Company, a manufacturer of energy-efficient industrial electric motors and mechanical power transmission products, recently announced a $15 million investment to expand its Anderson County facility. The move is expected to generate 45 jobs for the area over the next five years. “We are proud to partner with Anderson County, the South Carolina Department of Commerce and the city of Belton on this expansion,” said Tom Mascari, executive vice president for Baldor, in a release. “Our customers expect us to provide them with more value than anyone else in our industry, and the employees we have
in Belton do that each and every day. We believe this investment in our facility and our employees will allow us to continue taking care of customers all around the world from Belton, South Carolina.” Baldor is the largest industrial electrical motor and mechanical power transmission company in North America. Its Anderson County facility produces energy-saving gear reducers used in industrial equipment.
Spartanburg Herald-Journal Publisher Heads to Florida Spartanburg Herald-Journal publisher Kevin Drake was recently named publisher of Lakeland, Fla.-based Ledger Media Group. The Halifax Media Group owns both papers. Drake began his career in Spartanburg in 1997, serving as publisher of the Times-News in Hendersonville, N.C., and regional sales director of Halifax’s Western Carolinas Cluster before assuming his role as publisher of the Herald-Journal in 2012.
“Kevin Drake has done a terrific job leading the Her-
ald-Journal and serving his community,” said Rick Martin, Halifax’s north region publisher, in a release. “We will miss him in this region, but we will find a new publisher for Spartanburg who will lead the newspaper and its digital products to further success. I have a great deal of confidence in the management team in Spartanburg, and I know the operation there won’t miss a beat while we find our next publisher.”
Laurens Electric Co-op Encourages 75 Acts of Kindness Laurens Electric Cooperative (LEC) is celebrating its 75th with its 75 Acts of Kindness initiative. The company will award up to $500 for specific individuals or families in need to 75 different recipients throughout the year, totaling nearly $40,000. “There have been a lot of changes since the creation of Laurens Electric Cooperative back in 1939, but one thing that has not changed is our com-
24 UPSTATE BUSINESS JOURNAL
mitment to the communities we serve,” said J. David Wasson Jr., LEC president and CEO, in a release. “We decided that the best way to celebrate our 75 year history is to give back to those communities.” The program will be funded from LEC’s annual charity events, such as its Million Dollar Hole in One Shootout and annual Poker Run. Shown at left, J. David Wasson Jr.
January 31, 2014
Recipients do not have to be members of the co-op to apply, but must be from Greenville, Laurens or Spartanburg counties. Additionally, the program is not for general charity, schools or church funds, and applicants within established charities must use funds for specific, one-time acts. Applicants may apply online at laurenselectric.com or at one of Laurens Electric Cooperative’s offices.
UBJ SQUARE FEET â€“ DEALMAKERS THE MARCHANT COMPANY ANNOUNCED: Valerie Miller represented Nello and Susan Schafer Gioia in the sale of a 2,133 SF building at 25 S. Laurens St., Greenville. The buyer was Jasmine Cove Apartments LLC. LANGSTON-BLACK REAL ESTATE INC. ANNOUNCED: Jim Griffin recently represented the seller, 601 W. Wade Hampton Blvd. LLC, with the sale of their property located at 601 W. Wade Hampton Blvd., Greer, which consists of a 2,400 SF
building. This former Greer Express Lube facility was owned by a consortium of out-of-state banks that foreclosed on the property earlier. The property will be repurposed as a private fitness center. Aspen Commercial LLC was the purchaser. Tim Allender recently represented the purchasers, Scott Properties LLC, in acquiring a +/-12,000 SF retail-office building located at 5146-5150 Wade Hampton Blvd., Taylors. The space will be the new location for Drew Scott Allstate Insurance with the existing tenant Wedgyâ€™s Pizza.
SANDLAPPER SECURITIES LLC ANNOUNCED:
conservancy, preserving the land from future development.
The company recently raised over $6.24 million for three securitized real estate transactions on behalf of product sponsor Webb Creek Management Group LLC, based in Rome, Ga., as dealer manager.
KDS COMMERCIAL PROPERTIES ANNOUNCED:
Webb Creek sponsored investment opportunities in over 1,675 acres of unimproved lands throughout Clay, Terrell, Webster and Sumter counties in Georgia. Investors in these land deals can hold the property for investment, develop or place in
Physicians Services, in the leasing of medical office space located at 290 Enterprise Drive, Easley.
Mike Kiriakides represented the landlord in the leasing of 2,890 SF of office space at Georgia Road Commons, Simpsonville, to Grand Discovery Consultants of Asheville.
Larry Webb represented the tenant, Bon Secours St. Francis Physicians Services, in the leasing of 2,500 SF of office space located at 1100 Rutherford Road, Greenville. This will be the new location for Wellspring Family Practice.
Larry Webb represented the tenant, Terre Verre, in the leasing of 10,000 SF of distribution space located at 360 W. Phillips Road, Greer.
Mike Kiriakides represented the landlord in leasing 2818 Wade Hampton Blvd., Greenville, to Bikas Drive In.
Larry Webb represented the tenant, Bon Secours St. Francis
Brad Doyle represented the purchaser in the acquisition of 4 acres at
Over 550 deals leased and sold.
the corner of S. Suber Road and Suber Mill Road, Greer. Brad Doyle represented the buyer in the acquisition of 330 Pearman Dairy Road, Anderson. Jamie McCutchen represented the seller in multiple lots at The Reserve at Green Valley in Travelers Rest. Mike Kiriakides represented the seller in the sale of 3.50 acres located at 1000 Woodruff Road, Greenville. Brad Doyle represented the seller in the sale of a 4,000 SF office building located at 667 N. Academy St., Greenville.
5 million+ SF under management. Thank you to our clients in
Greenville, Spartanburg & Anderson for a successful 2013.
Commercial Real Estate Services, Worldwide.
January 31, 2014
UPSTATE BUSINESS JOURNAL 25
UBJ SQUARE FEET
Sales at The Reserve at Lake Keowee Increase By Sherry Jackson | staff | email@example.com
The luxury residential commu-
2013, which brought the total number of completed homes in The Reserve to 232. The Reserve also welcomed 69 new club members from 20 states and the Caribbean as a result of the sales and construction activity. Families from 40 states traveled to The Reserve to view properties. “We could not be more excited to welcome more families to The Reserve this past year,” said Rutledge Livingston, the community’s director
nity The Reserve at Lake Keowee is going strong, reporting a sales increase of 50 percent in 2013 with more construction and development planned in 2014. The Reserve also posted a record year in new-home construction. Fifty-one home plans were submitted to the community’s architecture review committee, and 40 homes broke ground. Twenty-four new-construction homes were finished in
of sales. “The Reserve continues to offer a high-quality lake living experience that is very appealing to buyers across the U.S. and internationally.” Created in 2000 by Greenwood Communities and Resorts, The Reserve at Lake Keowee is an award-winning residential community that spans 3,900 acres in the foothills of the Blue Ridge Mountains, with 30 miles of shoreline on Lake Keowee. The community in-
cludes a 200-slip marina, Village Center, Jack Nicklaus Signature Golf Course, and more than 1,400 acres of parks, preserves, trails and green spaces. In addition to introducing its second phase of homes within Village Point, a marina-front neighborhood, in August 2013, The Reserve at Lake Keowee has home construction activity within two additional neighborhoods: The Cottages at Laurel Pond and High Grove.
Mills Mill Community Plans Submitted By Sherry Jackson | staff | firstname.lastname@example.org
Plans were submitted to the Greenville Planning Commission for a new townhome community called the Cottages at Mills Mill. Located behind the current Mills SETH ST.
CL CIR LAKE
Mill condo complex, the planned community would be situated on 2.67 acres at Guess and Seth streets. Twenty-nine units are proposed with common-area courtyards and alleyways with garages in the rear of the homes. Craig Gaulden Davis is listed as the architects. The developer is listed as Mills Mill Associates LLC. The plans will be reviewed at the Feb. 13 meeting.
THE PANEL HAS SPOKEN...
26 UPSTATE BUSINESS JOURNAL
January 31, 2014
UBJ SQUARE FEET Essex Ct.
Kent L n Gilfilling Rd.
FOR LEASE: 400 S. Pleasantburg Drive
d. lling R
TAX MAP: 00266000101124 Dr. view Bates
Real Estate Development & Lifetime Achievement Who’s Who Sponsored by
Accounting Who’s Who Sponsored by
ZONING: C-3 MUNICIPALITY: Greer
By Sherry Jackson | staff | email@example.com
may soon be coming to the former Travel Inn site on Wade Hampton Boulevard. Called the Chartwell Apartments, plans submitted to the Greenville planning commission show the community would be comprised of nine three-story buildings on 5.4 acres. The property is already zoned for multifamily development. The one- and two-bedroom apartment complex would be located at Brookside Circle, Gilfilling Road and Wade Hampton Boulevard and include on-site bicycle racks, a gym, park area and internal walking track, according to the plans. The developer is listed as Johnston
SQUARE FOOTAGE AVAILABLE: 3,400 COUNTY: Greenville
109 Apartment Units Proposed for Wade Hampton A new 109-unit apartment complex
GLA: 11,500 SF
Properties from Greensboro, N.C., and the architect is Miller/Player Associates in Greenville. Johnston Properties held a neighborhood meeting Jan. 29 at the Stone Lake pool clubhouse on Chick Springs Road to allow nearby residents to view the plans and ask questions. The plans will be reviewed at the Feb. 13 planning commission meeting.
Hospitality Who’s Who Sponsored by
Charitable Who’s Who Sponsored by
LEASE RATE: $11.50/sf/year LEASE TYPE: NNN UNIT CONDITION: Grey Box YEAR BUILT: 1995 The shopping center at 400 S. Pleasantburg Drive with anchor tenant Honeybaked Ham is getting a makeover. Exterior renovations are currently underway. Honeybaked Ham renewed its lease last year for seven more years. The store is the second highest-grossing Honeybaked Ham store in the U.S. The property is owned and managed by RealOp Investment Funds and is listed by Avison Young.
Legal Who’s Who Sponsored by
Financial Services Who’s Who Sponsored by
Medical Who’s Who Sponsored by
Political Who’s Who Sponsored by
MORE WILL BE REVEALED IN NEXT WEEK’S ISSUE... January 31, 2014
UPSTATE BUSINESS JOURNAL 27
UBJ ON THE MOVE HIRED
New hires, promotions & award winners can be featured in On The Move. Send information & photos to firstname.lastname@example.org.
Joined O’Neal Inc. as project manager. Pindak has more than 25 years of professional engineering-procurementconstruction (EPC) experience. He previously worked with Gilbane and MWH Constructors as well as Pfizer. He received his B.S. in civil engineering from Brown University and a master’s in civil engineering from Virginia Polytechnic Institute.
Named as companywide logistics specialist and Gaffney office branch manager of Phillips Staffing. Childers joins Phillips after more than a decade of experience in professional management and logistics. Most recently, he served as distribution center manager for a global logistics company in Spartanburg.
Joined the Greenwood Genetic Center (GGC) as director of development for the Greenwood Genetic Center Foundation. Hann is a certified fundraising executive with 17 years of experience in creating and executing development and fundraising programs, primarily for health care organizations.
James L. “Jay” Rogers
Joined JHM Hotels as director of legal services. Hart was previously an attorney in the Florence, S.C. office of Turner, Padget, Graham & Laney. He received his bachelor’s in finance from Auburn University, his MBA from Samford University, his JD from Cumberland School of Law, and an LLM from Georgetown University.
Named as executive director of information technology for Spartanburg Methodist College. Arrington comes to SMC from the Union Hospital District, where he was the director of information systems. Prior to the hospital system, he served in various IT and communication roles with Exopack LLC, ProVest Wealth Advisors and IMT Duncan.
Joined Nelson Mullins Riley & Scarborough. Rogers is the former chairman of the board of directors of the Greenville Area Development Corporation. He has practiced law in Mexico and Brazil and served an appointment by the U.S. Secretary of Commerce to the South Carolina District Export Council from 20102013.
W hen you are done reading this paper, please recycle it. 28 UPSTATE BUSINESS JOURNAL
January 31, 2014
ARTS: Kristen Floyd joined Centre Stage as the director of development. Floyd is a graduate of Vanderbilt University with a degree in education and human and organizational development, and has worked in various roles in the nonprofit field for the last few years. FINANCIAL SERVICES: DeHollander & Janse Financial Group recently announced that Ashton Lawrence has joined as a paraplanner. Lawrence was previously a registered representative from New York Life Securities. INSURANCE: Signal Insurance Group recently announced that Graham Coleman has joined the company as a property and casualty insurance producer. Coleman has over 12 years of experience in the real estate industry and is a licensed property and casualty producer. LEGAL: The partners of Nelson Mullins Riley & Scarborough LLP have elected Greenville attorneys Sean Faulkner and Mike Johnson to the partnership. Both are former attorneys of counsel who both joined the firm in 2012. Faulkner has experience as a title insurance agent for Chicago Title Insurance Company and represents sellers, purchasers, lenders and developers. Johnson was previously an attorney for the U.S. Securities and Exchange Commission in Washington, D.C. Harrison, White, Smith & Coggins P.C. recently announced the addition of
Michael Q. Gault. Gault graduated from the Charleston School of Law in 2013. Prior to law school, he graduated from Wofford College with a B.A. in government in 2010. NONPROFIT: The Barbara Stone Foundation recently announced that Jeff M. Martin has been elected to serve on its board of directors. Martin is an attorney with Grimes Teich Anderson LLP. REAL ESTATE: Coldwell Banker Caine recently welcomed Andrigoula Karanikas as a residential sales agent to its Easley office. Karanikas joins Coldwell Banker Caine with experience in the restaurant industry, and previously worked as manager of Captain’s Cap. She received her B.S. in management and marketing from UNC Charlotte. Allen Tate Realtors proud to announce that Keaira Huffman and Mary Moore have joined the company’s Greer office, and Martha Rosenberg has joined the company’s forthcoming Woodruff Road office. Huffman brings more than six years of experience in strategic business and event management, client relationship building and problem-solving. TECHNOLOGY: Worthwhile recently announced the hiring of Jessica Toulson as production scheduler. Most recently, Toulson served as a finance and pricing analyst for a local heating and cooling distributor. She is a Bob Jones University graduate who earned a mathematics degree.
UBJ NEW TO THE STREET 1
e ad W
2. The Scarpetta Group, developers of FileMaker, iOS and Web applications, recently held a ribbon cutting at 425 N. Main St., Unit D, in Simpsonville. For more information, visit scarpettagroup.com or call 877-501-8038.
. vd Bl n o pt m a H
t. hS t r No E.
Dr. ntburg Pleasa
1. Bullard Strength & Conditioning recently opened at 15 Pelham Road, Suite B, in Greenville, near the intersection of E. North Street and North Pleasantburg Drive. For more information, visit bullardsc.com, call 864-315-0394 or email email@example.com.
St. E. North
Pe lha m
Hayw ood R d.
ple Ma N.
Jo ne sv ille
. St in Ma N.
Ga rris on Rd .
Rd. E. Georgia
$1.5 BILLION TOTAL VOLUME
Office. Industrial. Retail. Or Investment. Cushman & Wakefield | Thalhimer provides strategic real estate solutions. We thank all our clients for helping us finish out 2013 strong with completed assignments of over 13.6 million square feet in leases, 8.0 million square feet in sales, and a total transactional volume of almost $1,500,000,000. WELLS FARGO CENTER 15 South Main Street, Suite 925 Greenville, SC 29601 | p: 864.370.8155 | thalhimer.com
January 31, 2014
UPSTATE BUSINESS JOURNAL 29
UBJ PLANNER FRIDAY JANUARY 31
TUESDAY FEBRUARY 4
ROTARY CLUB GREENVILLE EAST MEETING
GSHRM MEMBERSHIP MEETING
CityRange, 615 Haywood Road, Greenville; 12:30-1:30 p.m. FOR INFORMATION: facebook.com/ GreenvilleEastRotary NORTH GREENVILLE ROTARY CLUB The Poinsett Club, 807 E. Washington St., Greenville; 12:30-1:30 p.m. COST: Free to attend, lunch $16 CONTACT: Shanda Jeffries at 864-968-2319 or firstname.lastname@example.org
MONDAY FEBRUARY 3 GCS ROUNDTABLE The Office Center at the Point, 33 Market Point Drive, Greenville; 8:30-9:30 a.m. SPEAKER: Myles Golden TOPIC: The Collective Genius Theory DETAILS: Call Golden Career Strategies at 864-527-0425 to request an invitation GSHRM COMMITTEE PLANNING MEETING Greenville Technical College, Buck Mickel Center, 216 S. Pleasantburg Drive, Greenville; noon-1 p.m.
CONTACT: president@ greenvilleeastrotary.org
Thornblade Club, 1275 Thornblade Blvd., Greer; 11:30 a.m.-1:30 p.m. TOPIC: Affordable Care Act COST: $25 per person REGISTER AT: greenvillehr.shrm.org
COACHES 4 CHARACTER
Courtyard Marriott/ Nantucket Seafood, 50 W. Broad St., Greenville; 5 p.m.
COST: Free for Greenville Chamber members; $20 for non-members CONTACT: 864-242-1050 REGISTER AT: greenvillechamber.org POISED FOR GROWTH 2014 SYMPOSIUM: UPSTATE REAL ESTATE FORECAST The Peace Center, Gunter Theatre, 300 S. Main St., Greenville; 4:30-6:30 p.m.
TOPIC: Thank You Reception for Jack Leggett
CONTACT: christina. email@example.com
COST: $50 donation to Coaches 4 Character, includes cocktail and hors d’oeuvres
GOLDEN STRIP TOASTMASTERS
CONTACT: Greg Blatt at gblatt@ coaches4character.com or 843-816-3297 COACHES 4 CHARACTER PROGRAM FOR THE STUDENTS
University Center, 225 S. Pleasantburg Dr., Auditorium Room 204, Greenville; noon-1 p.m. FOR INFORMATION: tmbilingue. toastmastersclubs.org
Redemption World Outreach Center, 74 Byrdland Drive, Greenville; 7 p.m.
CONTACT: Jeff Alfonso at jeff@ alfonsointerpreting.com
TOPIC: Thank You Reception for Jack Leggett COST: Free for Students, $5 donation for adults CONTACT: Greg Blatt atgblatt@ coaches4character.com or 843-816-3297
TOPIC: HR Management Conference
COST: Free for guests FOR INFORMATION: bit.ly/gstm01312014 CONTACT: Prasad Patchipulusu at firstname.lastname@example.org
WEDNESDAY FEBRUARY 5
NON-PROFIT ALLIANCE Greenville Chamber of Commerce, 24 Cleveland St., Greenville; noon-1:30 p.m. TOPIC: Keeping Events Legal, Profitable, and Fun
HANDSHAKES AND HASHBROWNS Sir George’s White House Salon, 200 School St., Greer; 8-9 a.m. COST: Free for Greer Chamber members
FOR INFORMATION: greenvillehr.shrm.org
REGISTER AT: greerchamber.com
30 UPSTATE BUSINESS JOURNAL
Grace Covenant Presbyterian Church, 739 N. Main St., Mauldin; 7-8 p.m.
January 31, 2014
SPEED NETWORKING Village Hospital Pelham, Village Hospital Community Room, 250 Westmoreland Rd., Greer; 11:45 a.m.-1 p.m. COST: Free to Greer Chamber members CONTACT: Katie Witherspoon at katie@ greerchamber.com 2014 MANUFACTURERS ROUNDTABLE Greenville Chamber of Commerce, 24 Cleveland St., Greenville; 12:30-1:30 p.m. TOPIC: Healthcare Strategies COST: Free to Greenville Chamber members; $15 per guest CONTACT: Darlene Parker at 864-239-3706 REGISTER AT: greenvillechamber.org BREWMASTERS Commerce Club, 55 Beattie Place, Greenville; 6:30 p.m. SPEAKERS: Scott Sheridan and Jason Selby, Stone Brewing FEATURED BEERS: IPA, Arrogant Bastard Ale, Vertical Epic, Smoked Porter COST: $20 per Commerce Club member, $25 for non-members DETAILS: Dress code
is business casual, but jeans are okay. RSVP TO: lynn@ naturewalkphotos.com, 864-232-5600, or commerce-club.com FOR INFORMATION: ccbrewmasters.com
THURSDAY FEBRUARY 6 BUSINESS NETWORK INTERNATIONALNETWORKING DAY Crown Plaza, 851 Congaree Road, Greenville; 8-9:30 a.m. COST: $15, includes continental breakfast catered by Ruth’s Chris CONTACT: Shanda Jeffries at sjeffries@ flynnwealth.com or 864-968-2319 GCS TOASTMASTERS TD Convention Center, 1 Exposition Drive, Greenville; noon-1 p.m. FOR INFORMATION: goldencareerstrategies. com/toastmaster.html CONTACT: Ann or Myles Golden at email@example.com or firstname.lastname@example.org SYP FIRST THURSDAY SOCIAL Olive and Then Some, 124 Magnolia St., Spartanburg; 5:30-7 p.m. FOR INFORMATION: syspartanburg.com
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Historic photo available from the Greenville Historical Society. From “Remembering Greenville: Photographs from the Coxe Collection,” by Jeffrey R. Willis
Supplying fresh fruit and vegetables to grocery stores, Pearce-Young-Angel was founded in Columbia in 1903 by Christopher Columbus Pearce. In 1926, the business expanded its operations to Greenville under the guidance of C.C. Pearce Jr. At this point the firm ceased to be a mere purveyor of fresh produce and entered the food service industry as a supplier to restaurants and hotels. In 1937, Pearce-Young-Angel became first in the area to handle the distribution of frozen foods. In 1967, Pearce-Young-Angel formed a merger with Consolidated Foods, distributor of the Monarch brand of foods. The name of the firm then became PYA/ Monarch Inc. When first coming to Greenville, the company was located at 490 McBee Ave. in a former warehouse of the Piedmont & Northern Railroad. In 1960, PYA/Monarch moved to White Horse Road. PHOTO PROV IDED
McBee Avenue has completely changed from the time Pearce-YoungAngel was located there. New office, residential and retail spaces now line the street. The area of the former warehouse is currently vacant.
CURRENT PHOTO BY GREG BECKNER / STAFF
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January 31, 2014
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UPSTATE BUSINESS JOURNAL 31
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