Charleston Regional Business Journal - February 9, 2015

February 9 - 22, 2015 • www.charlestonbusiness.com

Volume 21, No. 4 • $2.00

Riley says change takes ‘unrelenting commitment’

By Liz Segrist

lsegrist@scbiznews.com

Tech over 300

Tech-focused organization holds its biggest event ever in Charleston.

Page 2

“W

e began this journey together in 1975,” Charleston Mayor Joe Riley said to kick off his 39th and final State of the City address.

Standing before residents, family, City Council and media in City Hall, Riley looked back over the city’s progress during his 40-year

stint as mayor and shared a long list of goals he would like to achieve before his term ends in January 2016.

Riley wants to focus on creating new parks, museums and green spaces; completing longterm infrastructure projects; and developing mixed-use spaces within the city while maintaining Charleston’s character.

“I’m also proud of the recognition and fame that Charleston has received, but we are

New rules, new budget for CRDA

Total package

Deal merges MWV and RockTenn into $16 billion packaging company.

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INSIDE Upfront............................. 2 In Focus: Residential Real Estate.................... 15 List: Homebuilders........ 22 At Work.......................... 27 People in the News......... 27 Business Digest.............. 27 Hot Properties................. 30 Viewpoint........................ 31

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By Ashley Heffernan

Photo/Ashley Heffernan

Automaker looking toward Southeast for expansion, and S.C. likely on the list.

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See RILEY, Page 8

Cradle to Career report pinpoints where gaps begin

Alliance rewrites bylaws after year of turmoil.

Page 3

Volvo S.C.?

not resting on our laurels. We have much to do,” Riley said.

When Riley came into office 40 years ago, City Council developed a strategic plan to redevelop “the economically devastated center of our city: King Street,” Riley said.

Riley said the city has worked for decades to make the right investments and slowly rebuild

GAME ON

North Charleston’s $500,000 face-off with Stingrays The S.C. Stingrays hockey team, which loses $500,000 to $700,000 each year according to its owners, says it had two options to fix its finances: Ask North Charleston for money or cease operations.

Full story, page 12

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aheffernan@scbiznews.com

ven though all four school districts in the Lowcountry were recently rated as excellent by the S.C. Department of Education, the Tri-County Cradle to Career Collaborative doesn’t want business leaders to think there isn’t still work to be done.

The collaborative used regional data to examine where disparities exist between students of different socioeconomic and racial backgrounds, then broke the information into eight core indicators ranging from kindergarten readiness to postsecondary enrollment and compiled that data in a regional education report that was released Jan. 29.

Ted Legasey, chair of the collaborative’s data committee, said businesses should pay attention to more than just high school graduation and college enrollment data. He said preparation for kindergarten has an impact on children’s future proficiency in reading and math, their graduation rate and their ability to transition into the workforce.

“Ultimately, it’s all about our workforce readiness,” Legasey said. “Just think of what a crime it would be if we have all this financial See CRADLE TO CAREER, Page 10

Multifamily building boom

Apartment projects rising across the Lowcountry as generational trends shift.

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Upfront:

Briefs, brights and business news

On the Record “I’m also proud of the recognition and fame that Charleston has received, but we are not resting on our laurels. We have much to do.”

— Charleston Mayor Joe Riley in his 39th and final State of the City address Sparc President Eric Bowman (left) talks to Dig South founder Stanfield Gray and Sunny Gray during the Tech After 5 event in January in partnership with The Harbor Accelerator. (Photo/Andy Owens)

Hundreds flow into King Street for tech-focused event

Many came to the January edition of Tech After 5 well before the 5:30 p.m. start time.

For an hour it didn’t let up, as hundreds of would-be entrepreneurs, business owners, startups, makers, programmers, public relations pros and scores of others stood in line, grabbing beer from coolers on both sides of the registration table.

The Harbor Entrepreneur Center hosted Tech After 5 in the accelerator’s new location at 633 King St. in Charleston.

About 300 people signed up to attend, and the house was packed. Event organizer Phil Yanov said it was the largest Tech After 5 in the organization’s history. The Post and Courier offered up free parking at its nearby employee lot.

Shortly before the event began, Yanov sent an email urging attendees to take full advantage of the networking opportunity presented by the hundreds of people present.

“Do whatever it takes to make sure that you enter the room with a plan to meet five people,” Yanov said. “We want tonight to be more useful to you than any other networking event you have ever attended.”

Tech After 5 is held periodically in North Carolina, South Carolina, Georgia and Texas. In South Carolina, Tech After 5 is held once a month in Greenville, Columbia and Charleston.

Auto theft comes down to a business decision We get the pickup trucks — those things last forever and, you know, you always need to haul stuff. But what’s the fascination with the Honda Accord?

That’s the car that thieves go after the most in the Carolinas and Georgia. And not just any Accord, but the 1996 and 1997 models, according to data from the National Insurance Crime Bureau. South Carolina is tracking nationally on this stat: In 2013, the Honda Accord was the most stolen vehicle across the U.S. As it turns out, thieves are savvy about their business.

While you can’t respect or condone the crime, the rip-off artists understand what the market wants.

The bureau says thieves pick the 1990s-era cars because anti-theft technology wasn’t incorporated into the Accord some 20 years ago. The numbers back that up: Fewer than 300 of the 2013 model year Accords were stolen in that same year, but car thieves took more than 8,100 Accords built in 1996. The Accord has been one of Honda’s most popular models for a long time, and a lot of those cars built 20 years ago need parts, so there’s likely a robust aftermarket for ... ahem ... used car parts.

It’s really just supply and demand, and we’re guessing not a lot of car thieves went to business school to learn that.

Top 10 stolen vehicles in S.C. 1.

2.

3.

4.

5.

’97 Honda Accord ’99 Ford Pickup (full size) ’99 Chevrolet Pickup (full size) ’02 Ford Explorer ’98 Chevrolet Pickup (small)

6. ’05 Toyota Camry 7. ’01 Ford Crown Victoria 8. ’05 Dodge Pickup (full size) 9. ’00 Jeep Cherokee/Grand Cherokee 10. ’07 Chevrolet Impala

Source: National Insurance Crime Bureau

One number

32,676,000,000

$

The gross domestic product in the Charleston metro area in 2013, according to data from the U.S. Bureau of Economic Analysis. Compared with five years ago, the region’s GDP has risen by 18.4%, from $27.6 billion in 2009.

Feb. 9 -22, 2015

www.charlestonbusiness.com 3

CRDA moving past financial turmoil

By Ashley Heffernan aheffernan@scbiznews.com

A

fter a tumultuous first half of the fiscal year, the Charleston Regional Development Alliance is looking now to rebound with new bylaws and full support from the three counties that help fund it.

The alliance’s executive committee and board of directors met in late January to discuss the organization’s finances now that Berkeley, Charleston and Dorchester counties have agreed to restore funding after cutting much of it in mid-2014. Their cuts prompted the alliance to lay off three employees at the end of the year.

The board agreed to a budget for the remaining months of FY 2014-2015, which ends June 30, that will leave the organization with a net income of about $750,000.

About $150,000 of the surplus will be used to pay down debt, $200,000 will be contributed to the organization’s regional strategy campaign, $200,000 will be designated for special projects and the remaining $200,000 will be added to the alliance’s reserve account, according to CRDA treasurer Rudy Thomas, who is also the director of taxation for Dixon Hughes Goodman LLP. “It’s been a tough year expense-wise and income-wise and fear-wise with not being able to make it this year,” he said.

“The conversations have been … let’s

keep these spending cuts in place that we have through the end of the year, and come up with a year-end surplus that we can then apply to the CRDA’s balance sheet to make us a lot stronger financially going forward.”

New rules

The alliance also agreed to revise its bylaws in exchange for the local counties restoring funds.

The new bylaws, which were approved by the executive committee and await an official vote by the full board, specify all investors are equal. Investors are classified as private, county, municipal, chamber, quasi-governmental and economic leadership councils that participate in the CRDA. “No favoritism is to be granted among investors within CRDA, and investors should join for the purpose of increasing economic development for the tri-county area, not for individual gain or favor,” the new draft bylaws say.

The new bylaws increase the number of voting members on the executive committee from 11 to 15, with eight members from the private sector and seven from the public sector. The public sector will include two appointments from each of the counties and one rotating seat from the major municipalities. The cities will rotate yearly among North Charleston, Goose Creek, Mount Pleasant, SummerSee CRDA, Page 7

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Talking to existing industries Bob Whitten, president and CEO of Showa Denko Carbon Inc., asked how the Charleston Regional Development Alliance’s executive committee plans to move past criticism it faced about working with existing industries.

“This is a very touchy subject. It was one of the bitterest pills I had to swallow or listen to while I was chairman,” he said.

He said the criticism was mostly against CRDA CEO David Ginn and from leaders of the three area counties.

“The kinds of things that I heard was there was no need for David Ginn or anybody at CRDA to be wining and dining at any fancy country clubs — very, very vicious sort of complaints,” Whitten said.

Lonnie Carter, current chairman of the CRDA executive committee, said he dealt with the topic head-on.

“David knows the boundaries and how that’s supposed to operate,” Carter said.

New Charleston County Council Chairman Elliott Summey, who recently replaced Teddie Pryor on the committee, said the

CRDA should play a pivotal role with companies already in the Lowcountry.

“Let’s be honest: It’s common sense. If we have an existing company in this market that is looking at a major expansion — not just blowing out a wall and adding 10 or 15 jobs, but a major expansion — that expansion is going to be competitive with other regions, other states,” Summey said.

“That’s common sense. Therefore, the CRDA has a role and a seat at that table, and they should feel like they’re wanted.”

During his tenure, Pryor was outspoken about his dislike of the CRDA working with existing industry. He said businesses in a county should be the county’s responsibility.

“I don’t care what any bureaucrat says, it’s common sense in this business,” Summey said. “I think I can speak for my colleagues, who are all private business folks just like me, we’re not bureaucrats.

I expect our folks to use a commonsense approach. We’ve got to communicate, and that’s how we’re going to treat it, for at least the next year, in Charleston.”

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Feb. 9 - 22, 2015

Business news from around S.C. Clemson researcher gets go-ahead on crop drone An unpiloted research aircraft has been cleared for takeoff above farm fields at Clemson University’s Edisto Research and Education Center in Blackville. The drone will monitor crop health and gather data to improve crop productivity by letting growers know precisely when and where to water, fertilize or spray crops.

The drone can also quickly spot livestock problems that require attention.

Joe Mari Maja, a research sensor engineer at the center, received Federal Aviation Administration approval in December to fly a drone as part of an effort with “intelligent agritronics devices.” The sensor technologies can be used to collect crop data quickly, helping farmers improve soil quality and eradicate pests and disease. A monitor on the aerial device can analyze a 10-acre field in under five minutes, work that takes a person days or weeks to complete, Maja said in a Joe Mari Maja, a research sensor engineer at Clemson University, statement.

“I believe the applica- received Federal Aviation Administration approval to fly this drone tions for this are just enor- for agriculture research. (Photo/Clemson University) mous,” said Maja, who has a background in computer engineering. He said using the devices “is a game changer in precision agriculture.”

Maja is developing sensors that can transmit crop data to wearable products such as smart glasses. He’s built prototype circuit boards that will allow the aerial monitors to communicate directly with farm technology like irrigation systems.

“That’s my dream,” Maja said.

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Haley OKs gas tax increase, with certain conditions Gov. Nikki Haley called for raising the state gas tax by 10 cents a gallon over three years as part of a roads-improvement plan. However, Haley said she’d support the increase in gasoline tax only if the legislature agrees to cut income taxes to 5% from 7% over the next 10 years and restructure the S.C. Transportation Department.

Technology consulting firm opens Columbia office Charlotte-based Seedspark, which provides small to midsize companies technology solutions to help clients improve productivity and efficiencies, opened an office at 5000 Thurmond Mall in Columbia.

Mortgage firm investing $22M in S.C. headquarters Founded in 2008, Movement Mortgage plans to move its headquarters to Lancaster County from Virginia Beach, Va. The company, which expects to create 650 jobs, is led by Casey Crawford, a former tight end with the Carolina Panthers.

Greenville-based outdoor advertising firm sold to private equity firm

Orangeburg’s Cox acquires U.S. utility pole unit from Koppers

In announcing formation of the House Education Policy Review and Reform Task Force, S.C. House Speaker Jay Lucas sought to change the standard for a public education in South Carolina from “minimally adequate” to “exceptional.”

Acon Investments and MidOcean Partners have completed the sale of their portfolio company, Greenville-based Fairway Media Group LLC, to investment funds affiliated with Chicago-based private equity firm GTCR, a statement said.

The acquisition will allow the Orangeburg company to further expand its existing treated wood utility pole business, making it one of the largest providers of the product in the United States.

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An insolvent Seneca-based health insurer in the middle of an FBI fraud investigation owes medical providers about $8 million, a court appointed overseer of the nonprofit’s finances said. Mike FitzGibbons of S.C. Health Cooperative Inc. said the insurer is handling unpaid claims for payment from physicians and medical facilities across the state.

S.C. House speaker creates education reform task force

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Insurer’s insolvency leaves about $8M unpaid

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Feb. 9 -22, 2015

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Feb. 9 - 22, 2015

MWV, RockTenn merger to form $16B packaging firm

By Liz Segrist

lsegrist@scbiznews.com

M

WV, a global packaging company that has Charleston ties through its specialty chemicals and land management divisions, plans to merge with RockTenn to form a $16 billion global packaging company.

Norcross, Ga.-based RockTenn provides packaging and manufactures containerboard and paperboard. It has 27,000 employees in the United States, Canada, Mexico, Chile and Argentina.

Richmond, Va.-based MeadWestvaco Corp., a former paper supplier, provides packaging for the beauty, food, garden and tobacco industries, among others.

MWV employs 15,000 people at 125 facilities in North America, South America, Europe and Asia.

In 2008, MWV sold its paper mill along the Cooper River by Interstate 526 to KapStone Paper and Packaging Corp. for $485 million.

Next door to its former paper plant, MWV produces wood-based chemicals for the automotive and energy industries through its specialty chemicals division, which it plans to spin off from the rest of the company by the end of the year.

MWV spokesman Tucker McNeil

said in an email that the merger does not Merger details Once MWV and RockTenn merge in change those plans.

MWV’s local development and land the second quarter, pending regulatory management division is currently devel- and shareholder approvals, the company oping industrial parks along Interstate will have new a new name, a combined 26 and two mixed-use communities in value of $15.7 billion and adjusted earnSummerville: 5,000-acre Nexton and ings of $2.9 billion.

RockTenn CEO 6,400-acre Summers Steven C. Voorhees Corner. MWV also will serve as the CEO owns its 72,000-acre “It is too early to tell and president of the East Edisto Rural District Properties. what impact the merger combined company; MWV Chairman and MWV announced announcement will have CEO John A. Luke plans last year to Jr. will become the sell 50,000 acres on any given facility or non-executive chairof its East Edisto man of the board. rural properties over locality or jobs.”

A news release the next five years said remaining execfor low-density home Tucker McNeil utive positions will be sites or hunting, farmMWV spokesman named before closing or timbering. ing. Eight directors MWV has owned the from RockTenn and land for 90 years.

Last year, MWV sold all of its U.S. for- six from MWV will make up the board.

The company said it does not know estland to Plum Creek Timber Co. Inc. for $1.1 billion. The company said the whether layoffs will occur. MWV has not sale of its forestland and its impending submitted a WARN filing in Virginia, merger with RockTenn should not alter according to the state’s workforce departplans for the communities being built in ment website. Companies are required to notify state government off upcoming Summerville.

MWV currently owns 87,000 acres in layoffs under the Worker Adjustment and Retraining Notification Act. the Charleston area.

“It is too early to tell what impact the merger announcement will have on any given facility or locality or jobs,” McNeil said.

The companies expect the merger will save $300 million over three years by improving procurement and supply chain processes, eliminating overhead and administrative functions and consolidating purchasing.

MWV stockholders will receive 0.78 shares of the new company for each share of MWV. For each share of RockTenn held, shareholders can elect to receive either one share of the new company or cash equal to the volume-weighted average price of RockTenn common stock during a five-day period ending three trading days prior to closing.

The cash and stock elections by RockTenn shareholders will be subject to proration so that 50.1% of the new company’s ownership will be held by MWV shareholders and 49.9% by RockTenn shareholders.

Luke and Voorhees said the merger combines two companies with complementary products to create a larger packaging solutions provider. cr bj

Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.

Feb. 9 -22, 2015 CRDA, continued from Page 3

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ville and Charleston.

Members of the CRDA executive committee are also members of the organization’s board.

The new bylaws say an investor can be removed from participating in the CRDA’s board or executive committee if a payment is not made within 90 days of the due date, unless an extension is granted. Counties must pay at least $1.45 per capita based on the most recent decennial census.

Five-month plan

Leaders from the CRDA are planning to take 16 trips in hopes of recruiting business to the Lowcountry between now and June, according to CEO David Ginn.

He said eight of those will be outside the United States, five will be focused on aerospace and three will be to attend site-selection consultant forums or events. A handful of the trips are in partnership with the S.C. Department of Commerce.

“The top 30 consultants in this coun-

try really manage or drive about 50% to 60% of the projects that will happen over the next 12 months, so our job as economic development folks on behalf of the community is for those consultants to know us, trust us and when they have something real they call us,” Ginn said.

Some of the trips will be to Los Angeles, Chicago, Paris, Brussels and Germany.

“Our real goal in traveling and really selling is to get clients, prospects and those consultants here to visit,” he said.

“No business investor has ever invested money without being a visitor first. It’s a very profound statement about how we’re all tied together, No. 1. But two, the point is we want them to come here, but every company won’t come here unless we go see them sometimes.”

Ginn said the CRDA picked up eight new projects in early January — two were in aerospace and one each related to pharmaceuticals, call center, automotive, ammunition, distribution and consumer products. cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

Report: Volvo could put new plant in S.C.

By Liz Segrist

S

lsegrist@scbiznews.com

outh Carolina is reportedly on the short list of possible sites for Volvo to build a plant facility.

Les Kerssemakers, the company’s senior vice president of the Americas, is charged with opening a U.S. factory for Volvo, according to several anonymous sources quoted in the Financial Times.

Volvo spokesman Jeroen Demmendaal said in an email that the company has no comment and “there were no supporting quotations to substantiate those claims.”

The story said Volvo officials are in talks with legislators and economic development agencies in Alabama, South Carolina, Kentucky and North Carolina.

“It is our practice that the (S.C.) Department of Commerce does not publicly discuss its economic development or recruitment efforts,” spokeswoman Allison Skipper said in an emailed statement.

The Charleston Regional Development Alliance is currently working on an automotive project, according to officials during a meeting last month, but spokeswoman Claire Gibbons said she could not comment on whether her organization has been talking with Volvo.

“The automotive industry is one we target, so we’re always looking to grow that supply chain,” Gibbons said.

North Carolina currently houses

Volvo and state officials aren’t talking about the possibility of the company locating a plant in South Carolina. (Photo/Provided)

the car company’s Volvo Trucks’ North American headquarters, in Greensboro.

BMW’s campus in Greer and Daimler’s Mercedes-Benz plant in Tuscaloosa, Ala., might have piqued Volvo’s interest.

BMW opened its U.S. manufacturing facility in Greer 20 years ago. The German car manufacturer has since produced 2.6 million vehicles in South Carolina and invested $6.3 billion in growing its Spartanburg County operations, which currently employ about 7,600 workers, according to a recent study from the University of South Carolina’s Darla Moore School of Business.

Ford sold Volvo to Chinese carmaker Geely and parent company Zhejiang Geely Holding Group Co. for $1.5 billion in 2010. Volvo sold 56,000 vehicles in the U.S. last year. cr bj

Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.

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Feb. 9 - 22, 2015 RILEY, continued from Page 1

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Riley said public parks and museums are an important part of cities, allowing all people to experience something that connects them and spans generations.

He hopes the $142 million Gaillard Center that’s under construction will be “one of the most significant buildings in Charleston’s history.” The 1,800-seat performance hall and office space is scheduled for a spring opening.

“This building will be held by succeeding generations as a special, personal treasure that belongs to every citizen,” Riley said. “There will be a lifetime of memories going to the Gaillard.”

Riley also wants to secure funding for the construction of the $75 million International African American Museum on the site of Gadsden’s Wharf on East Bay, where more than 100,000 Africans landed in Charleston and were sold into slavery.

“The International African American Museum will honor those enslaved Africans who were brought to our city hundreds of years ago in the most difficult circumstances to this very site. ... It will enlighten all of us,” Riley said.

the street. In the 1970s, King Street was not lined with offices, tech companies, restaurants and high-end shops, and tourists did not fill its sidewalks every day.

“The rebuilding of a city takes time and unrelenting commitment,” Riley said. “King Street, once an actual poster child of a dying downtown in the 1970s, now boasts a retail vacancy rate — from Calhoun Street to Broad — of zero.”

Riley said Charleston’s growing knowledge-based economy and the boom of local tech firms and startups also helped with the redevelopment of the peninsula.

Riley pointed to the mixed-use Midtown development that’s under construction at King and Spring streets and the future Courier Square mixed-use project on 12 acres off King Street as signs of continued growth on Upper King Street.

The success of Upper King’s redevelopment created a swath of new bars and restaurants and a busy nightlife in the area, a drastic change from when Riley first took office.

Riley said the hospitality businesses are important for a thrivTransportation, ing city, “but, like anyinfrastructure thing else in life, someRiley said the deeptimes you can have too “We have ening of Charleston much of a good thing.”

Harbor to 52 feet is Charleston City Counaccomplished so needed to continue cil approved a one-year the Port of Charlesmoratorium on new bars last year for parts much together but we ton’s growth, as well as to support all of the of the city. have so much to do.” jobs and businesses As growth and develthroughout the state opment boom on the Charleston Mayor Joe Riley that are connected to peninsula, the city plans the port. to create a city center Riley also said the in West Ashley at the Citadel Mall site. Riley also wants to controversial completion of Interstate enhance trails for pedestrians and cyclists 526 has to occur if Charleston is going to and expand parks throughout West Ash- be able to accommodate its population ley. The city recently introduced a five- growth and improve highway congestion.

“Without this important transportapronged economic development plan to enhance the community’s retail and tion artery completed, we will increasingly experience an equivalent of a traffic quality-of-life assets.

Riley said the Charleston region is heart attack because the bypass was never large enough to support a recreational completed,” Riley said.

Riley also advocated for the S.C. facility to attract out-of-state competitions and be used for local teams. He Legislature to pass a gas tax increase to pointed to the Citadel Mall site as a possi- help fund much-needed repairs to the state’s roads and bridges. ble place for such an athletic facility.

On the peninsula, Riley said he wants “It would require substantial public and private funds and regional partner- to see the former Norfolk Southern rail ship. It may take many years to accom- line, which runs parallel to King and Meeting streets, become a pedestrian and plish,” Riley said. transit asset in the city.

Museums, parks “We have accomplished so much The city has tripled its number of together but we have so much to do,” parks in the past 40 years, Riley said. Riley said. “This will be, as it should be, a The Battery recently underwent renova- very busy year ahead.” tions, and Colonial Lake is undergoing an extensive makeover to add pathways, Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter. trees and benches to the park. cr bj

Feb. 9 -22, 2015

Port of Charleston focuses on increasing cargo base in 2015

By Liz Segrist

lsegrist@scbiznews.com

W

ith a harbor deepening study underway, terminal improvements in motion and continued growth post-recession, CEO Jim Newsome said the S.C. State Ports Authority needs to focus on growing its cargo base.

“We can deepen our harbor, we can do all the things we need to do to invest in our infrastructure, but growing our cargo base is crucial,” Newsome said as part of his midyear fiscal 2015 business update during a recent board meeting in downtown Charleston.

Economic development plays a huge role in increasing the cargo coming through the Port of Charleston, but it can be years before a company opens a facility in South Carolina.

To increase the port’s cargo base in the short-term, Newsome said the authority should recruit all importers and exporters looking for less expensive inland economics and continue to grow discretionary cargo, especially agriculture and plastic products.

Newsome also said the port should support long-term economic development projects, such as more distribution centers, manufacturing facilities and transloading operations opening throughout the state.

Newsome said the port’s rebound post-recession has been significant thus far. In calendar year 2009, the port handled 679,000 pier containers, compared with 1.02 million pier containers in 2014.

Newsome credits this growth, in part, to increased cargo, the state’s growing manufacturing base and the port’s owner-operator business model.

The ports authority owns and operates all of its terminals, a contrast to many West Coast ports that privatized their terminals and created landlord-tenant operations in the past decade.

“Those ports are saying they need to act more like the South Atlantic ports now. We have much more control of the quality of our product ... and we are congestion-free,” Newsome said.

Thus far in fiscal 2015, from July through December, the port has seen 15% growth in imports, 7% growth in exports and 27% growth in empty containers compared to the same time in fiscal 2014. Newsome said the port gets paid for each container, whether it’s full or empty.

Newsome expects more modest growth in the second half of fiscal 2015.

Seasonally, soybean exports continue to be strong at about 40 containers a day.

The ports authority has expanded gate hours for truckers, opening the port from 6 a.m. to 7 a.m. Monday through Friday.

The port is averaging about 300 moves during this time slot. The authority also began Saturday service on Feb. 1 from 8 a.m. to noon and 1 p.m. to 5 p.m.

“We’re doing everything we can to give truckers as much opportunity to get in and out of the terminals quickly,” Newsome said.

Board votes to improve terminals

The ports authority unanimously approved a $7 million contract with Global Rigging & Transport to relocate three Morris container cranes from the Wando Welch Terminal in Mount Pleasant to the North Charleston Terminal. Morris cranes move containers between ships and the wharf. The bid also includes the removal of two container cranes that are too old to remain in service.

The board unanimously approved a $589,000 contract with Engineering Design Services to improve about 10 acres within the Columbus Street Terminal to improve existing truck gate infrastructure and expand the container yard.

And the board unanimously approved a $260,000 contract for Cape Romain Contractors Inc. to test the Wando Welch Terminal wharf ’s piles and see what capacity they can withstand. Wando Welch, built in the 1970s, is being repaired and improved to prepare for larger ships expected to flood the East Coast in 2016 after the Panama Canal is expanded and the Bayonne Bridge in New York is raised. cr bj

Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.

Statistics for first six months of fiscal year 2015, July-December

919,500

23 minutes

20-foot containers handled, up 13.2% year-over-year

is the average turn time truckers had for all terminals.

938

About 95,000

ships docked during the period, up 2% from last year

cruise passengers came to port, down 7%

www.charlestonbusiness.com 9

10

www.charlestonbusiness.com

Feb. 9 - 22, 2015 CRADLE TO CAREER, continued from Page 1

Where We Are Now Nearly 80% of kindergartners lack proficiency in vocabulary, and 60% lack proficiency in social and emotional development.

Percentage of kindergartners not proficient by subtest

22%

76%

25%

60%

Letter Naming

Vocabulary

Phonemic Awareness

Social & Emotional Development

Where We Have Gaps Although there are differences in vocabulary performance by race/ethnicity, results show most tri-county children are not proficient in vocabulary by the time they enter kindergarten.

Percentage of kindergartners not proficient in vocabulary

76%

83%

95%

64%

Tri-County

Black

Hispanic

White

* Data are preliminary and likely to change. This is the first year that the specific assessment used here has been administered, so these data may be affected by factors such as test administration protocols, as well as student differences in readiness.

➤

success in this community and a huge segment of our population, our neighbors, get left behind.”

One of the key findings of the report was that children who start behind tend to stay behind. In the tri-county, about 24% of kindergarten students enter school proficient in vocabulary, and about 40% are proficient enough in social and emotional development to thrive in a classroom setting.

The InterTech Group CEO Anita Zucker, who is chairwoman of the Tri-County Cradle to Career Collaborative board of directors, said her immediate focus is on children who haven’t made it to kindergarten.

“The youngest children from zero to 3 that are growing up in a household that is low-income hear 30 million less words.

So they start behind the eight ball,” Zucker said. “Think of how far behind they get if they haven’t had anyone working with them, and here they come to kindergarten. The youngest ages are so critically important, and we can’t put blame on the schools. This is a familial and community issue that is facing all of us.”

By third grade, 82% of students meet reading standards, but proficiency decreases to 72% by eighth grade, the report said. That’s equivalent to one in five students in third grade and about one

in four students in eighth grade who are not reading at their grade level.

National data show that children who are not reading at the right level by the end of third grade are four times less likely to graduate high school than students who are proficient, Legasey said.

“What we have that much of the nation doesn’t have is we’ve got all these solid growth dynamics in this community from the business standpoint. We have the opportunity to resource it correctly; a lot of communities don’t,” he said.

The report also found a widening achievement gap that separates the performance of higher-income students from that of lower-income students.

Students identified as low-income are those who qualify for free or reducedprice meals, which are based on a household income at or below 185% of the federal poverty line. That equates to a family of four surviving on about $44,000 annually.

In the tri-county, 53% of public school students are eligible for free or reducedprice meals, a 7% increase since 2008.

At the third-grade reading level, about 27% of lower-income children don’t reach the standard 600 on the S.C. Palmetto Assessment of State Standards.

About 7% of higher-income children don’t meet the standard. In eighth grade, 41% of lower-income children don’t meet the standard while 15% of higher-income

Feb. 9 -22, 2015

children don’t meet the standard.

“People that are lower-income individuals, our children in particular, are unfortunately not performing as well as those who live in the households where they’re not receiving subsidies, for example, at school,” Zucker said. “In other words, higher-income students are able to achieve more than our lower-income students.”

The problems continue after the student graduates. A large number of local high school graduates who attend Trident Technical College require significant remediation in math, English and reading, the report found. The collaborative looked at Trident Tech students because the data was readily available.

The report said more than 1,000 firsttime freshmen from local high schools who enrolled at Trident Tech did not pass 40% of the courses they attempted during their first term. About 90% of the students needed math remediation, 40% needed English help and about 33% needed reading support, the data showed.

After analyzing the data, the collective found that the Lowcountry’s educational attainment levels don’t match up with future workforce needs that require some level of postsecondary credentials.

About 81% of high school students graduate on time, meaning about 1,300 students don’t graduate within four years of starting high school in the tri-county.

www.charlestonbusiness.com 11

Community leaders met on Jan. 29 to hear about the Tri-County Cradle to Career Collaborative’s first regional education report. After the presentation, they broke into small groups to discuss how the issues can be addressed and what other data is needed. (Photos/Ryan Wilcox)

When broken down by income, nearly 90% of higher-income students graduate on time, while 74% of lower-income students earn their diploma on time, the report found.

Legasey said area colleges are awarding more than 8,000 degrees and certificates a year. Nearly 2,000 are certificates, 1,650 are associate degrees, about 3,300

are bachelor’s degrees, 1,000 are master’s degrees and 400 are doctorates.

“If we look at the job potential side and the kinds of technical and credential and degree training that’s going to be required for these, the pipelines are not big enough to feed these right now,” Legasey said.

Jessica Jackson, global corporate citizenship manager for Boeing South

Carolina and a member of the collaborative’s board of directors, said students in school now are the foundation for the company’s workforce.

“We invest in all of those programs at Boeing because we need to build the local pipeline for our future workforce.

That achievement gap widening, we need to narrow that, and we need to invest in early childhood education,” she said.

Now that the data has been compiled and released, the collaborative’s next step is to build two networks, consisting of 30 to 50 members each, that will meet beginning in March. The networks will each tackle one of the core indicators: kindergarten readiness, led by Trident United Way, and high school graduation, led by the Charleston Metro Chamber of Commerce.

Once the networks are established, they’ll create goals and go to work meeting them.

“There’s a dizzying array of data, far more data than there are useful applications of it,” said John Read, CEO of the Tri-County Cradle to Career Collaborative. “Whatever we do next needs to be more like boots on the ground — or Nikes, or Pradas or whatever people wear — so we’re approaching ground zero where these issues really live.” cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

12

www.charlestonbusiness.com

Feb. 9 - 22, 2015

The Reading Royals defeated the S.C. Stingrays, 2-1, on Jan. 24 in front of 10,535 fans. Attendance was higher than usual because of a Pack-the-House ticket promotion. (Photo/Ashley Heffernan)

North Charleston votes to give Stingrays hockey team up to $500K

By Ashley Heffernan

B

aheffernan@scbiznews.com

y a vote of 8-1, North Charleston City Council approved first reading of an ordinance to pay the S.C. Stingrays hockey team up to $500,000 over the next two years.

The Stingrays have played home games in the city-owned North Charleston Coliseum 40 to 50 days each season since the facility opened in 1993. But it has been difficult to keep the team financially viable, according to city documents.

“At this point, the Stingrays ownership must consider whether to continue subsidizing the team or to cease operations,” a summary of the city ordinance says. “The Stingrays approached the city to explore ways in which the city could adjust its relationship in order to lessen the team’s yearly shortfall.”

The East Coast Hockey League team is owned by the Zucker family, which also owns The InterTech Group and the Carolina Ice Palace in North Charleston, among other properties. Jonathan Zucker said the family has been losing between $500,000 and $700,000 each year for the past several years.

“It’s a service to provide familyfriendly entertainment to the people of the community,” Zucker said. “We do believe the city is and should remain our partner in providing this. That’s how my family looks at it.”

If the ordinance passes final reading Feb. 12, the city will pay the Stingrays during fiscal years 2016 and 2017. The amount each year would total 50% of the Stingrays’ net loss up to $250,000, and the city’s finance director would be given

access to the team’s books to verify the amount.

The agreement would also include a two-year lease agreement for the coliseum, with the team having an option to extend for a third year.

Joe Babik, director of communications at the ECHL, said the Stingrays’ contract with the league is set to expire at the end of the season. A one-year facility lease for home games is required to renew the contact.

Zucker said his goal was to renegotiate the lease agreement to reduce the team’s cost. The team rents the coliseum for about $6,000 per night plus other fees related to labor and the number of tickets sold, according to Zucker. The city receives all the proceeds from parking and half the concessions revenue, which the city then splits in half with the Stingrays.

Since the ECHL needed an agreement in place quickly, Zucker said there wasn’t enough time to negotiate the fees. So he and Mayor Keith Summey discussed the city providing a rebate.

“We said rather than negotiate the finer points, let’s agree to what looks like a subsidy. Our whole goal is to reduce the cost of the lease, and this is the quickest and easiest way to get that done,” Zucker said. “Over the next two years, we’ll get going on the finer points of the lease.”

City Councilman Todd Olds was the only member to vote against the ordinance during the City Council meeting on Thursday.

“I am not here against the Stingrays.

I am not here against Anita Zucker, the Zucker family or the city of North Charleston. I am here about what my

Feb. 9 -22, 2015

www.charlestonbusiness.com 13

Fans watch the S.C. Stingrays vs. Reading Royals game on Jan. 24. Stingrays owner Jonathan Zucker said the team loses $500,000 to $700,000 a year. (Photo/Ashley Heffernan)

constituents expect me as a representative given to us or not, I don’t know,” Olds for them to do, and that’s to preserve and said. “I still don’t see me supporting a protect their tax dollars,” Olds said. business, a private enterprise.”

Summey argued that losing the StingZucker said his family is in the busirays would cause a negative ripple effect ness of getting people to watch hockey. throughout the community. He said the He hopes having the city’s financial supemployees who work in the coliseum’s port will help the team “get some butts food and merchandise sectors would lose in the seats” and return it to the “glory work hours and possibly their jobs, and days” of having 9,000 or more fans at the city would lose food and beverage most games. taxes. He also noted The team has that the city recentcompleted marly paid to redo the ket studies and has “If the Stingrays were coliseum’s ice and been meeting with purchased a Zamseason ticket holdnot paying anything to boni ice resurface ers to learn ways machine. to improve the fan the city, if we were not “You’re talking 40 experience, accordnights. These people ing to Zucker. tenants, it would be a live in our communi“We’ve learned ty while they’re here. that 85% of people at subsidy. But we pay.”

If you want to close the Stingrays games Jonathan Zucker it, fine,” Summey don’t care about S.C. Stingrays owner told Olds. hockey; they care Olds responded about the entertainthat the city would ment value of their not allow 40 nights to pass without pick- time and dollars spent,” Zucker said. ing up other events for the venue.

He noted that promotions, such as a “We go after every event that’s on the “Pack the House” event on Saturday that market now,” Summey said. “We might drew more than 10,500 fans to the colipick up five or six more.” seum, are being held and developed to Olds said paying the Stingrays would make more money for the team and the establish a precedent for other private city. businesses.

“This is not a subsidy,” Zucker said. “If “You can slice this a hundred different the Stingrays were not paying anything to ways, but you can’t sell it to the public the city, if we were not tenants, it would like you’re trying to sell it. The public sees be a subsidy. But we pay.” this as a subsidy, they see it as corporate Councilmen Edward Astle and Samuwelfare, and that’s the way it’s perceived,” el Hart were not present for the vote in Olds said. “I think it sets a precedent for late January. During the Jan. 15 finance others to open their hand and say ‘Will committee meeting, they voted to recomyou subsidize me?’” mend approval of the agreement. CounOlds said he hopes that between now cilmen Bob King, Dwight Stigler and and the next vote, the Stingrays owners Olds voted against it during the commitwill provide more information on their tee meeting. finances, specifically their costs and sales Reach staff writer Ashley Heffernan at revenue.

“It’s been requested. Whether it gets 843-849-3144 or @AshleyBHeff on Twitter. cr bj

14

www.charlestonbusiness.com

Feb. 9 - 22, 2015

SnapCap to double team, relocate to Cigar Factory

By Liz Segrist

C

lsegrist@scbiznews.com

harleston-based SnapCap plans to at least double the size of its team and move into a 3,200-squarefoot office in the Cigar Factory.

The Web-based finance lender employs 10 people at 205 King St. in downtown Charleston with plans to relocate to the fourth floor of the five-story brick building located on East Bay Street at the foot of the Ravenel Bridge.

Built in the 1880s and most recently home to Johnson & Wales University, the Cigar Factory is undergoing massive renovations.

SnapCap will join tenants Garden & Gun magazine, The Indigo Road restaurant group, Exceed Physical Culture gym, design firm Fritz Porter, Midland Mortgage Corp., tech firm EnviroMix Inc., The Law Office of M. Brooks Derrick LLC and Strategic Risk Solutions.

“The redevelopment of the northern half of the Peninsula is symbolic of the growth projected for Charleston over the coming years, and the Cigar Factory will serve as a visibly prominent landmark signaling that growth,” SnapCap President and co-founder Hunter Stunzi said.

As SnapCap prepares to relocate, Stunzi said he expects to hire at least 10 more employees over the next year for sales, processing and credit and underwriting positions.

Stunzi and Chris Mettler, SnapCap’s vice president of operations, founded the company in 2012 after both working at banks, where they were frustrated by what businesses had to go through to secure loans. Many entrepreneurs were denied loans or the process took too long to be helpful, Stunzi said.

They wanted to find a way to quickly vet business owners or companies for loans.

SnapCap provides business loans up to $250,000 to existing businesses, usually within 48 hours. The majority of the loans are for fewer than 12 months, and the average loan is $38,000.

“We’re having the fastest conversation with our users; faster than all of our competitors,” Stunzi said.

The company recently nabbed Automated Trading Desk founder Steve Swanson as an investor and mentor. Swanson founded ATD in Charleston in 1988 and joined Citi’s Global Electronic Trading Products and Services group when Citi acquired ATD. “When we first met, I saw a lot of similarities between what is happening at SnapCap and what we had been doing at Automated Trading Desk,” Swanson said.

“The ability to take data and correlate that to help you make decisions on whether it would be a good trade, which is what we did at ADT, or a good loan, in SnapCap’s case ... was immediately exciting.”

How it works

Stunzi said he’s not looking to lend to people who are trying to consolidate debt or make payroll for that month. He said he feels that lending on a “needs basis,” such as with payday lenders, is unethical.

SnapCap loans are designed for business owners who need to grow their inventory, expand their workforce or move, for example. SnapCap lends to coffeeshops, mechanics, real estate agents, e-commerce firms, kennels, landscapers and taxi companies, to name a few.

Among the company’s recent loans were $65,000 to a Fort Myers, Fla.-based medical supply firm for an expansion; $12,000 to an Anaheim, Calif.-based child-care center to hire more employees and $11,000 to a Houston-based computer repair firm for marketing.

“It’s really critical for us as a lender with money at play that the people are borrowing for the right reasons. ... We’re not interested in lending to people who can just barely pay it back,” Stunzi said.

“We want them to make money from borrowing our money — and from that we develop relationships with borrowers that span many, many loans.”

SnapCap implemented an aggressive online advertising campaign; its site usually appears as the top paid search result when someone Googles “business loan.”

SnapCap’s sales team reviews each applicant’s financial information and credit score for the three months prior.

Each employee reviews about 10 applicants a day on average, Stunzi said.

Ideal borrowers have been in business for at least three years, have about $100,000 in revenue and maintain an average bank balance of $1,500, among other factors.

Loans are divided into daily payments that are debited automatically from a merchant’s account. SnapCap does not disclose its rates.

Swanson and Stunzi, both College of Charleston alumni, wanted students to have the opportunity to work at SnapCap part time while in school.

As a member of the College of Charleston’s Business School Board of Governors, Swanson helped create an internship program for finance and business undergraduates at the college. SnapCap currently has four interns. cr bj

Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.

In Focus:

Residential Real Estate

Shift to apartment living spurs growth

By Ashley Heffernan

T

aheffernan@scbiznews.com

here has been a fundamental shift in how people are choosing to live, and it’s being spearheaded by the millennial generation, according to Dan Doyle, vice president of development at The Beach Co. On the surface, the Lowcountry appears to be experiencing a boom in construction of new apartment complexes. But Doyle sees it as more than just a temporary change in demand.

“For so long, people would strive and have this end goal of owning a home.

I don’t think that’s the case as much today as it used to be,” he said. “A lot of it is related to the age demographic. The millennials, they are really driving this.

There is a huge population coming into the workforce, and they’re really wanting a different type of lifestyle.”

Millennials — classified as the generation born after 1980, according to the Pew Research Center — tend to not focus on the amount of space within an apartment, condominium, town house or single-family home.

They typically prefer to live in communities that are within walking distance to their favorite locations.

“They’re more transient. Oftentimes, you’d work at a company for 30 years and then you’d retire from that company,” Doyle said. “Today, this age group has more of a tendency to go from job to job.

They want the ability to pick up and move to another part of the country. Apartments are more suited to them.”

The increase in apartment construction is not just a Charleston-area phenomenon. The country’s annual effective rent growth reached a 4.9% pace in December, according to data from Axiometrics Inc., a Texas-based analytics firm that tracks the nation’s apartment housing market.

The last time the growth pace was that high was in August 2011.

The company said 2014 was the nation’s strongest year for apartments since the Great Recession ended, as measured by its 5% year-to-date effective rent growth.

“The national apartment market continues to outperform all expectations,” Jay Denton, senior vice president of research and analytics for Axiometrics, said in a statement. “The combination of an improving job market and a growing percentage of the population that prefers renting to owning continues to boost apartment demand.”

List Homebuilders, Page 22

Residential on the rise

With a few exceptions, the economic indicators for residential real estate across South Carolina keep trending upward. Numbers from the S.C. Association of Realtors shows how each data point and region compares.

Top markets for closings % Change Region 2014 from 2013 Charleston Trident 14,253 +8.8% Coastal Carolinas 10,403 +4.6% Greater Greenville 10,244 +8.0% Greater Columbia 9,777 +4.6% Spartanburg 3,831 +8.8% Statewide 47,281 +7.9%

Top markets for median price

A 430-unit luxury apartment complex called 930 NoMo is under construction on Morrison Drive. The complex will cater to College of Charleston students. (Rendering/CampusWorks)

Axiometrics ranked Charleston as the 12th-highest metropolitan statistical area in the country for annual effective rent growth.

In December, Charleston’s growth rate was 6.7%, up from 3.2% in December 2013. Occupancy rates were up from 94.7% in December 2013 to 95.1% in December 2014, and revenue growth increased from 3.2% to 7.3%, the company said.

Five California metro areas — Oakland (No. 1), San Francisco (No. 2), San Jose (No. 4), Sacramento (No. 5) and Los Angeles (No. 14) — were in the top 15, and Denver took the third spot.

Charleston was the only metro area breaking the top 15 in South Carolina.

All about location

Location is a major factor driving the explosion of the “luxury” brand commonly attached to the description of new apartment complexes across the Lowcountry.

Doyle said it’s hard to describe “luxury” because various developers see it differently. He said developers often use the word because the lender requires it to ensure the project will be competitive with other projects.

“When you look at your target market, the big question is always, ‘What do I have to do to be competitive?’ ” Doyle said.

Five years ago, luxury units often featured granite countertops. They may have had a special type of flooring and, particularly in suburban areas, they would have included a standalone clubhouse with a large fitness center and club room in which residents could gather, Doyle said.

Today, luxury units may have more standard interior finishes but garner the classification based solely on location.

“Direct walking access to restaurants and other entertainment and grocery shopping, that’s being able to afford a sense of lifestyle that you may not get at a community where you have to get in a car and drive somewhere,” Doyle said.

“Making it easier and making residents less dependent on automobiles is what a typical consumer now conceives as luxury.”

The increase in apartment units could eventually become a problem in some areas of the country, but Doyle doesn’t think the Charleston market will experience an apartment bubble.

“To focus on Charleston, I think there are a number of different things going for it. Job growth, in-migration of population, those are two key drivers to keeping a positive absorption rate for apartments coming online,” he said.

Doyle predicts the apartment market will remain competitive as long as the population in the Lowcountry continues to increase and the number of jobs keeps growing.

“You have to remember, some projects won’t come to fruition, others will,” Doyle said. “Those that may be further along in process will happen and some just starting out may find that a submarket in the area becomes built to a point where a project may need to be delayed simply because of the supply.”

See Lowcountry projects that are in the works starting on page 19.

% Change Region 2014 from 2013 Hilton Head Area $257,500 +2.3% Charleston Trident $215,000 +4.9% Beaufort $191,000 +8.5% Greater Greenville $159,000 +3.8% Coastal Carolinas $155,000 +6.2% Statewide $160,000 +3.3% Source: S.C. Association of Realtors

Charleston’s real estate market

The Charleston Trident Association of Realtors’ annual report shows how each submarket in the Charleston region changed in the past 12 months.

Top submarkets for closings Area % Change from 2013 Kiawah/Seabrook 31.8% Wando/Cainhoy 31.0% Goose Creek/Moncks Corner 19.7%

Top submarkets for median price Area % Change from 2013 Downtown Charleston 25.8% Upper Peninsula 20.9% Folly Beach 20.0% Source: Charleston Trident Association of Realtors 2014 Annual Report on the Charleston Housing Market

Next Issue’s Focus:

Energy and the Environment

16

www.charlestonbusiness.com

IN FOCUS: Residential real estate

Feb. 9 - 22, 2015

Lowcountry home sales volume up by 9% in 2014

By Ashley Heffernan aheffernan@scbiznews.com

H

ome sales volume in the Lowcountry was up 9% in 2014 from the previous year, and the median price of homes in the area grew by nearly 5% in the same time period, according to data released in January by the Charleston Trident Association of Realtors.

The number of homes for sale, however, was 12% lower in 2014 than in 2013, the association said.

Matt DeAntonio, the association’s president, called 2014 “another great year for Charleston real estate.”

“In 2015, we expect to see sales volume and prices continue to grow, but at a tempered pace,” DeAntonio said in a statement. “We will be watching the Fed to see what they do with rates. We do expect to see them increase slightly, and we will continue working to ensure that the Charleston region maintains its business-friendly climate and that we’re growing in smart, sustainable ways.”

Last year, 14,253 homes sold in the Charleston metro area, according to the association. Kiawah Island, Seabrook Island, Wando, parts of the North area and James Island were the most active subsections.

The area’s median home price was $215,000, which is up from $204,900 in

2013. In December alone, a little more than 1,200 homes sold, at a median price of $202,870. Downtown Charleston and Folly Beach saw the largest median-price growth, the association said.

The number of days a property was on the market before being sold was down for the third year in a row. In 2014, homes were on the market for an average of 80 days, six days fewer than in 2013, according to the association.

Sales of single-family homes increased almost 17% in 2014, but sales of condominiums and town houses stayed about the same as the previous year. Distressed home sales made up 12.5% of the market last year, which is half of the 2012 amount, the association’s data showed.

At the close of 2014, there were nearly 5,500 homes for sale in the region. Year over year, Johns Island saw the largest increase in inventory, at 16.9%, while the upper Charleston peninsula (-40.6%), Folly Beach (-32.4%) and Sullivan’s Island (-30.2%) ended the year with the lowest inventory growth, according to the association.

“As seller confidence continues to build on the heels of another positive year, expect to see inventory increase throughout 2015,” the association said via a news release. cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

Residential real estate data for the Lowcountry Berkeley County

3,258 Total closed sales in 2014

17.3% % change from 2013

29.7% % new construction

10.2% % condos

74

Days on market

Charleston County

7,608 Total closed sales in 2014

2.6% % change from 2013

19.1% % new construction

23.1% % condos

83

Days on market

Dorchester County

2,638 Total closed sales in 2014

10.8% % change from 2013

20.8% % new construction

8.7% % condos

74

Days on market

Source: Charleston Trident Association of Realtors

IN FOCUS: Residential real estate

Feb. 9 -22, 2015

Charleston County near bottom of S.C. residential rental returns

By Ashley Heffernan aheffernan@scbiznews.com

C

harleston County had a low potential rental return compared with the national average during the first quarter of the year, while Berkeley and Dorchester counties both boasted higher-than-average figures.

Real estate data company RealtyTrac analyzed 516 counties across the country — looking at median sales prices for single-family homes and condominiums, average fair market rents for three-bedroom properties, unemployment rates and demographic trends — to determine which markets were best for buying residential rental properties.

The average potential return was 9.04% in the first quarter for the counties studied, which encompassed about 236 million people, or 76% of the nation’s population.

The return is down slightly from an average potential annual return of 9.06% in the third quarter of 2014, when the most recent residential rental property report was issued, according to RealtyTrac.

In Charleston County, the annual gross yield — the total amount of rental income received in a year divided by the median sales price of homes in the market — on residential rentals was 5.84% during the first quarter.

It was 9.61% in Berkeley County and 9.78% in Dorchester County, RealtyTrac data showed.

The state’s best location for residential rental returns was Sumter County, at 12.65%, while Horry County saw the lowest return, at 5.54%.

Across the country, Clayton County, Ga., recorded the highest return at 25.83%, followed by Bibb County, Ga., at 22.33% and Baltimore City, Md., at 20.99%.

Daren Blomquist, a vice president at RealtyTrac, said there are markets where buying single-family rentals no longer makes sense because of “rapidly rising prices over the past few years.”

“With homeownership rates at their lowest level in 20 years, historically low levels of housing starts and relatively low home prices in many parts of the country, there is still plenty of opportunity in the U.S. housing market for single-family rental investors employing a variety of investing strategies,” Blomquist said.

“Whether focusing on markets where homeownership-shy millennials are migrating, markets where recovering Gen X homeowners-turned-renters are prevalent, or markets baby boomers are testing for retirement, investors can find good options with solid potential rental returns.”

First-quarter residential rental returns for select S.C. counties

County Sumter Anderson Aiken Spartanburg Lexington Richland Pickens Dorchester Berkeley Florence Greenville York Beaufort Charleston Horry

Annual cash flow for cash investor (after taxes/ insurance) $8,674 $9,345 $10,393 $9,382 $10,659 $10,645 $9,946 $12,527 $12,491 $7,816 $9,584 $11,080 $11,093 $11,129 $8,969

Annual gross yield 12.65% 11.77% 11.10% 10.59% 10.36% 10.27% 10.04% 9.78% 9.61% 8.59% 8.19% 7.92% 6.19% 5.84% 5.54%

Source: RealtyTrac

Generational makeup

RealtyTrac found that 25.79% of the rental market in Charleston County in 2013 comprised millennials, which the company defines as people born between 1977 and 1992. From 2007 to 2013, that number went up 21.94% in the county.

The national average for the millennial generation was 22% in 2013, an increase of 5% from 2007, RealtyTrac said.

In Berkeley County, 23.47% of the market was millennials, up nearly 17% from 2007; 21.47% of the Dorchester County market comprised millennials, an increase of 8.61% since 2007, according to RealtyTrac.

Generation X, defined as people born between 1965 and 1976, made up 16% of the rental market nationwide in 2013, an increase of 5% since 2007.

Generation Xers totaled 14.77% of Charleston County rentals in 2013; 16.01% in Berkeley County and 17.03% in Dorchester County, RealtyTrac said.

At 25%, baby boomers, which RealtyTrac defines as people born between 1945 and 1964, accounted for most of the rental market, just edging out the millennials.

Baby boomers made up 24.8% of the Charleston County market, 23.6% of the Berkeley County market and 24.17% of the Dorchester County market, according to RealtyTrac. cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

www.charlestonbusiness.com 17

18

IN FOCUS: Residential real estate

www.charlestonbusiness.com

FHA reform could save homeowners $1,200 a year in Charleston County

By Ashley Heffernan

F

aheffernan@scbiznews.com

ollowing a proposal by President Barack Obama, the Federal Housing Administration reduced annual insurance premiums new borrowers pay by half a percentage point in January.

Households that use FHA mortgages will now pay 0.85% of their loan amount for insurance instead of 1.35% of the loan amount. The insurance is comparable to private mortgage insurance but under the federal program. Homebuyers with a down payment of less than 20% are required to purchase the mortgage insurance, which is typically a percentage of the loan amount.

The U.S. Department of Housing and Urban Development predicts the reduction will save 2 million FHA homeowners an average of $900 annually over the next three years and increase the number of first-time homebuyers by 250,000.

“Since 2009, the Obama administration has taken bold steps to reduce risks in the mortgage market and to protect consumers,” HUD Secretary Julian Castro said.

“These efforts have made it possible to take this prudent measure while also ensuring FHA remains on a positive financial trajectory. By bringing our premiums down, we’re helping folks lift themselves up so they can open new doors of opportunity and strengthen their financial futures.”

The annual savings amount will be an average of $1,200 a year in Charleston

Feb. 9 - 22, 2015

Larger properties dominated S.C. market in 2014

By Ashley Heffernan

Annual insurance premium data for select S.C. counties

County Aiken Anderson Beaufort Berkeley Charleston

Avg. loan amount with 3.5% down payment $103,255 $86,850 $222,915 $146,680 $241,250

Avg. monthly mortgage payment before reform $717.12 $603.19 $1,548.18 $1,018.72 $1,675.52

Avg. monthly mortgage payment after reform $674.10 $567.00 $1,455.30 $957.60 $1,575.00

Annual savings $516 $434 $1,115 $733 $1,206

Dorchester Florence Greenville Horry Lexington Pickens Richland Spartanburg Sumter York

$144,171 $104,703 $136,065 $208,730 $114,726 $110,975 $115,704 $98,430 $74,305 $163,809

$1,001.29 $727.18 $944.99 $1,449.66 $796.79 $770.74 $803.58 $683.61 $516.06 $1,137.68

$941.22 $683.55 $888.30 $1,362.69 $748.99 $724.50 $755.37 $642.60 $485.10 $1,069.42

$721 $524 $680 $1,044 $574 $555 $579 $492 $372 $819 Source: RealtyTrac

County, more than the national average, according to residential real estate data company RealtyTrac.

Berkeley County property owners will likely save about $960, while Dorchester County homeowners are expected to pay about $940 less each year.

The average FHA loan amount between January and November 2014 was nearly $170,000, which is down from

$180,000 in 2013 and $190,000 in 2012.

In 2005, the average loan totaled about $140,000, according to RealtyTrac.

Overall, 1.34% of all FHA loans are in the foreclosure process, compared with 0.72% for all other loans, RealtyTrac data shows. cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

S

aheffernan@scbiznews.com

ellers of three-bedroom properties saw on average 96.1% of their list price received at sale in 2014, according to data from the S.C. Association of Realtors. Four-bedroom properties led the market at 96.7%.

In the Charleston Trident, properties with four or more bedrooms accounted for 37.7% of the market, and properties with two or fewer bedrooms took 12.3% of the market, the association said.

Across the state, homes priced at $100,000 and less were the most popular.

The price range with the strongest oneyear change in sales was properties priced at more than $300,000, with a 17.8% increase; but that range had the fewest closed sales, according to the association.

Statewide, homes $300,001 and up stayed on the market the longest of any group at 126 days. Homes priced between $100,001 and $200,000 sold the fastest, in 114 days. In the Charleston Trident area, homes stayed on the market for an average of 80 days, the association said.

The state’s overall median sales price rose 3.3% from 2013 to $160,000, and the number of closed sales increased nearly 8% to 50,994. That made last year the sixth consecutive year of sales gains in the Palmetto state. Nearly 13,000 closed sales were reported in the Charleston Trident area, a 13.1% increase from 2013, the association reported.

Consumers statewide had 0.8% fewer inventory options last year than they did in the previous year, with 31,131 active listings at the end of 2014. But seller activity increased 8.8% to 84,227 new listings, the S.C. Realtors said. cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

IN FOCUS: Residential real estate

Feb. 9 -22, 2015

Lowcountry projects in the works

Charleston

930 NoMo, a $35 million complex with fully furnished apartments, is expected to open in the fall. (Renderings/CampusWorks)

I

n Charleston, a new, 430-bed, $35 million apartment complex catering to college students is under construction on Morrison Drive.

Charlotte-based CampusWorks Development is building 930 NoMo, which will have a pool, clubhouse, rooftop lounge, emergency phones, gated parking and a community shuttle to the College of Charleston. A tanning salon, bocce court, cycle center and fitness center will also be built.

Rent prices for 930 NoMo are expected to start at $899, and fully furnished two-, three- and four-bedroom floor plans will be available.

Apartments will also be built in a mixed-use development at the corner of Meeting and Columbus streets on the peninsula.

Evening Post Industries, the parent company of The Post and Courier, has been approved by the city to build

220 units in Courier Square. The entire 12-acre site will eventually include apartments, office space, commercial space and a parking deck.

Residents of the peninsula’s 14-story Sergeant Jasper apartment building vacated the structure last year, and Broad Street Market, which had a lease on the bottom floor, closed this month.

Demolition of the first-level commercial section is scheduled to begin in March. The building will be dismantled floor by floor, starting from the top.

The Beach Co., which manages the property, is going through the planning and approval process with the city to determine what the site will become next, according to Dan Doyle, a vice president See APARTMENTS, Page 20

Crowne at Maybank Village will offer about 300 apartment units. (Rendering/Crowne Partners)

➤

www.charlestonbusiness.com 19

20

IN FOCUS: Residential real estate

www.charlestonbusiness.com

APARTMENTS, continued from Page 19

➤

with the company. He said the new structure will likely be much shorter than 14 floors and probably will be a mix of residential units and commercial space.

In West Ashley, Continental Properties Co. is building the Springs at Essex Farms apartment complex at 3245 Glenn McConnell Parkway. The complex will include 284 units and is expected to open this spring.

Less than three miles away, the Avenues at Verdier Point, a 288-unit complex, recently opened off Bees Ferry Road.

On the other end of the city, on Daniel Island, a 269-unit complex called Simmons Park is under construction on River Landing Drive. Spectrum Properties broke ground in the fall of 2013, leasing began in late 2014 and the project is expected to be complete in mid-2015.

The city has also given initial approval to a 312-unit project on Daniel Island called Woodfield and a 315-unit project called Faison Daniel Island. Both will be

Feb. 9 - 22, 2015 Shade Tree Apartments on Johns Island will include 11 buildings with nearly 250 units. The Kalikow Group project, part of a 355-acre master-planned development, is expected to open by the end of the year.

(Rendering/Kalikow Group)

located on Island Park Drive, according to city planning documents.

Two apartment complexes are also under construction on Johns Island.

Shade Tree Apartments, developed by the Kalikow Group, will include 11 buildings with nearly 250 units once complete.

That is expected by the end of the year.

The property on Maybank Highway is part of a 355-acre master planned development.

Crowne at Maybank Village, a Crowne Partners development on Maybank Highway, will include nearly 300 units with

one-, two- and three-bedroom layouts.

On James Island, Woodfield Investment’s The Standard will open 280 units on Maybank Highway when it’s complete in the third quarter of this year. Woodfield is also building Cooper River Farms on Clements Ferry Road. The 290-unit complex is expected to open in the first quarter of 2016.

This spring, Broadstone at Folly Beach, under construction by Alliance Residential, will open on Folly Road with 296 units. The complex will offer floor plans with one to three bedrooms.

Mount Pleasant

Bridgeside at Patriots Point will include almost 575 units. (Rendering/Daniel Corp.)

I

n Mount Pleasant, impact assessments and conceptual plans have been approved for phase two of The Boulevard apartments. The first phase of the controversial complex was built by The Beach Co. on 5.95 acres along Coleman Boulevard. The company sold the complex for $66.5 million to TR Boulevard Corp., an entity of Heitman Capital Management LLC, in February 2014.

Heitman is planning to build 105 additional units on 2 acres of property on the corner of Pherigo and King streets, according to town documents.

Real estate development firm Daniel Corp. is working on a luxury apartment community called Bridgeside at Patriots Point. Nearly 575 multifamily units are in the works on 45 acres of property along Harry Hallman Jr. Blvd., between the Ravenel Bridge and the College of Charleston baseball facility at Patriots Point.

Town documents also show CDM of

Charleston LLC was approved to build The Grove at Carolina Park, a 280-unit complex near the intersection of Park Avenue and Carolina Park boulevards near Wando High School. The 1,600-acre Carolina Park master-planned community where the apartments will be built was approved for 2,030 multifamily units, which the apartments will count toward.

The Haven at Midtown, a 300-unit apartment complex, is under construction, according to town documents. Hassell Tract Associates LLC is building on 9 acres at Central Haven Drive. The apartment units are counting toward the maximum of 719 approved residential units at the 100-acre Central Mount Pleasant mixed-use development at Hungryneck Boulevard and Midtown Avenue.

The Beach Co. also recently finished building the Riviera at Seaside Farms apartments and town houses. The 252 units are mixed with retail establishments

The Boulevard sits along Coleman Boulevard.

(Photo/Jason Stemple/The Beach Co.)

near Rifle Range Road and the Isle of Palms Connector.

Other residential and mixed-use projects in various stages of development include: • Gregorie Ferry Landing, a 240-unit residential and retail development at the intersection of U.S. Highway 17 North and Porchers Bluff Road.

• Johnson Tract, a 456-unit mixed-use development at U.S. Highway 17 North and James Nelson Road.

• Phase two of Mount Pleasant Square, a 254-unit residential and retail development near the intersection of Rifle Range Road and Ben Sawyer Boulevard.

• Snee Farm Village, a 38-unit development near the clubhouse in Snee Farm.

• Final phase of The Tides, a 55-unit condominium tower along Wingo Way.

North Charleston

IN FOCUS: Residential real estate

The Factory at Garco Park, a 271-unit apartment complex in North Charleston, is still in the design phase. (Rendering/The Beach Co.)

I

n North Charleston, The Beach Co. is planning a 271-unit apartment complex called The Factory at Garco Park off East Montague Avenue.

The project is still in the design phase, but Dan Doyle, vice president of development, said the complex will likely be mixed-use with residential units above retail stores.

He said the company is planning to start construction this spring and open the first units in early 2016.

A 56-unit apartment complex called Harbour Station Apartments is under construction at 6935 Rivers Ave., according to city documents. The complex is being developed by Douglas

Rivers Ave. LLC. Permitting is underway for Centre Pointe Apartments, which is expected to have 174 units, at 4986 Wetland Crossing.

Eagle Landing Apartments, a 201-unit complex at 2055 Eagle Landing Drive, and The Atlantic on Rivers, a 210-unit complex at 6880 Rivers Ave., are also in the permitting stages.

Jamestown Properties has proposed adding 60 units to the Flats at Mixson, located at 4500 Mixson Ave., and an undisclosed company is working with the city on a 296-unit complex. The city said the complex has been proposed but the location and name of the site have not been decided yet.

In the past year, several apartments have been completed in the North Charleston area.

The city issued certificates of occupancy between August 2013 and March 2014 for Abberly Crossing, a 320-unit complex at 9698 Patriot Blvd., and between January and July 2014 for Cypress River Apartments, a 280-unit complex at 9325 Blue House Road.

Ansley Commons Apartments on Shipley Street are partially complete, according to the city. Some certificates have been issued for the 270-unit facility being built by Hathaway Development Partners LLC, but others are still being finalized.

Summerville

L

ucy Dreyer, a planner for the town of Summerville, said the town currently has no new apartment projects in the review stage.

The only complex under construction in the town is within the 4,500-acre Nexton development off Interstate 26 and 17A. The Beach Co. and MWV broke ground on the 320-unit Parks at Nexton apartment complex in January 2014.

Residents will have access to the Nexton community’s gigabit Internet service, which provides data speeds as much as 100 times faster than average Internet services.

“We are quite excited to bring a new pedestrian-friendly, urban living experience to the Summerville marketplace,” Kent Johnson, vice president of development at The Beach Co., said in a statement.

“Our high level of amenities — coupled with cutting-edge Internet technology — should make the Parks a unique home for our future residents.”

Parks at Nexton will offer studio to

The Parks at Nexton apartment complex will include 320 units. (Rendering/The Beach Co.)

three-bedroom floor plans along with a fitness center, saltwater pool and garages.

The most recently completed complex in Summerville, Dreyer said, is Arbor Village Apartments at 10825 Dorchester Road. The 240-unit complex was devel-

oped for $26 million by North Charleston-based Applegate & Co. and opened in the fall of 2014. cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

www.charlestonbusiness.com 21

22

IN FOCUS: Residential real estate

www.charlestonbusiness.com

Feb. 9 - 22, 2015

Homebuilders

Ranked by No. of Permits Granted in 2013 Company Ryland Homes 216 Seven Farms Drive, Suite 200 Charleston, SC 29492 Lennar Carolinas LLC 1941 Savage Road, Suite 100C Charleston, SC 29407 D.R. Horton Inc. 503 Wando Park Blvd Suite 200 Mount Pleasant, SC 29464 Crescent Homes LLC 572 Savannah Hwy Charleston, SC 29407 Beazer Homes 4401 Belle Oaks Drive, Suite 210 North Charleston, SC 29405 Eastwood Homes 2265 Clements Ferry Road, Suite 205 Charleston, SC 29492 Sabal Homes LLC 421 Wando Park Blvd. Suite 230 Mount Pleasant, SC 29464

Phone / Website Email

Permits / Employees

Developments/Areas in South Carolina

Representative Price Range

Top Local Official(s) / Year Founded

843-375-5555 www.ryland.com 843-388-8989 www.lennar.com amy.dooley@lennar.com 843-284-5000 www.drhorton.com 843-573-9635 www.crescenthomes.net 843-746-6520 www.beazer.com sarah.masche@beazer.com 843-388-8087 www.eastwoodhomes.com 843-388-8483 www.SabalHomesSC.com info@sabalhomes.net

363 42

Carolina Park, Tupelo, Six-Fifty-Six Coleman, Whitney Lake, Brickhope Plantation, Charleston Oaks

$150,000-$450,000

Don McDonough 2002

261 63

Mount Pleasant, Ladson, Summerville, Moncks Corner

$130,990-$330,990

Jason Byham, Robert Mauch 1954

258 55

Mount Pleasant, Isle of Palms, North Charleston, Hanahan, Moncks Corner, Summerville, Johns Island, James Island

$160,000-$700,000

Brian Gardner, Josh Meier, Brian Wagner 1978

236 40

Riverland Park, James Island; Indigo Palms and Baker Plantation, North Charleston; Nelliefield Plantation and Somerset Oaks, Mt. Pleasant; Foxbank Plantation, Moncks Corner; White Gables, Summerville;

$155,000-$500,000

Edward M. Terry 2009

230 30

Charleston, Summerville, James Island, Moncks Corner

$140,000-$357,000

Douglas Schwartz 1987

160 21

Mount Pleasant, Johns Island, Charleston, North Charleston, Summerville, Goose Creek, Moncks Corner

$150,000-$350,000

Jason Esposito 1977

128 25

Branch Creek, Carnes Crossroads, Foxbank Plantation, Palmetto Walk at Cane Bay Plantation, Riverside at Carolina Park, Summer Wood, The Lakes of Cane Bay Plantation, The Landing at Grand Oaks Plantation

$170,000-$760,000

R. Matthew Jones, W. Todd Ussery, Jason E. Simpson 2005 Bryan Booth, Bubba Reynolds, Jeff Waddle, Jon Calbert, Ben Harrison 1997 (Charleston) 1976 Company

David Weekley Homes 498 Wando Park Blvd Ste 650 Mount. Pleasant, SC 29405

843-654-5559 www.DavidWeekleyHomes.com skemp@dwhomes.com

112 37

Daniel Island, Carnes Crossroads, Tanner Hall, Timbercrest, Foxbank Plantation, Carolina Park, Hampton Lake, Palmetto Bluff, Rose Dhu, Hampton Hall, Park West, Rivertowne

$180,000-$700,000

John Wieland Homes 3015 Dunes West Blvd., Suite 502 Mount Pleasant, SC 29466 Rolina Homes 654 Coleman Blvd., Suite 202 Mount Pleasant, SC 29464 FrontDoor Communities 20 Bridgeside Blvd.

Mount Pleasant, SC 29464 Cline Homes 474 Wando Park Blvd, Suite 106 Mt Pleasant, SC 29464 G. Tupper III Construction Inc 1400 Central Ave. Summerville, SC 29483

843-849-8787 www.jwhomes.com 843-200-8764 www.rolinahomes.com 843-849-2332 www.frontdoorcommunities.com info@frontdoorcommunities.com 843-849-2929 www.cline-homes.com 843-875-4080 www.gtupper3.com -

110 30

Dunes West, Hamlin Plantation & Daniel Island

$299,900-$1,099,900

Kevin Popson, James Huffman 1990

54 6

BHidden Palms, Tranquil Plantation, Elizabeth Pointe, Dills Bluff, Brightwoods

$120,000-$450,000

Jason R. Fabrizio 2010

50 5

Tributary, Watermark, Freeman's Point

$380-$650

Mark Lipsmeyer 2010

38 8

Daniel Island - Smythe Park Daniel Island Park Riverside, Carolina Park

$500,000-$1,100,000

Stu Cline, Jeff Cline, Scott Cline 2005

35 6

Gilford Gates, Pineforest Country County Club, The Summitt

$350,000-$1,200,000

George L. Tupper III 1989

View this list online at www.scbiznews.com/data. Although every effort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to lists@scbiznews.com or go to www.tinyurl.com/joinourlists.

Researched by Business Journal staff

IN FOCUS: Residential real estate

Feb. 9 -22, 2015

www.charlestonbusiness.com 23

Homebuilders

Ranked by No. of Permits Granted in 2013 Company Tom Martin and Son, LLC 3069 Maybank Highway Johns Island, SC 29455 America's Home Place 7620 Rivers Ave., Suite 110B North Charleston, SC 29406 Luxury Simplified Construction 31 Amherst St. Charleston, SC 29403 Chuck Bennett Contracting Inc. 2018 Herbert St. Charleston, SC 29405 Level Carolina Homes LLC 105 Central Ave. Suite 200-A Goose Creek, SC 29445 Manorhouse Builders of South Carolina 215 East Bay St., Suite 504 Charleston, SC 29401 Lowcountry Residential Builders LLC 110 Sangaree Parkway Summerville, SC 29483 Village Restoration & Custom Homes 305 McCormick St. Mount Pleasant, SC 29464 Structures Building Company 899 Island Park Drive Charleston, SC 29492 Carolina Contracting Solutions LLC 1318 S.C. Highway 61 Ridgeville, SC 29472 Sea Island Habitat for Humanity 2545 Bohicket Road Johns Island, SC 29455 Dave Sondles Builders LLC 3202 Waverly Lane Johns Island, SC 29455 Hager Construction LLC 26-32 Ave. Isle of Palms, SC 29451 Patrick Henry Construction 2396 Furman Drive Charleston, SC 29414

Phone / Website Email

Permits / Employees

Developments/Areas in South Carolina

Representative Price Range

Top Local Official(s) / Year Founded

843-559-3823 TomMartinAndSon.com Build@TomMartinAndSon.com 843-824-2174 www.americashomeplace.com 843-200-2540 www.luxurysimplifiedgroup.com 843-577-7968 www.chuckbennettcontracting.com 843-751-4320 Levelhomeslifestyle.com 843-377-1312 www.mhbsc.com kimberly@eastbaycompany.com 843-875-3080 www.lowcountryresidential.com 843-971-5974 www.villagerestoration.net 843-856-6901 structures.net jsimpson@structures.net 843-832-1300 www.ccsolutionssc.com steve@ccsolutionssc.com 843-768-0998 www.seaislandhabitat.org information@seaislandhabitat.org 843-768-6811 none davesondles@bellsouth.net 843-224-7578 www.andyhagerconstruction.com andyhager@bellsouth.net 843-729-3468 PatrickHenryConstruction.com patrickhenry@comcast.net

30 6

Kiawah, Seabrook, Johns Island, Wadmalaw Island

$15,000-$2,000,000

Tommy Martin II 2004

28 4

Build in mostly rural areas and on your lot builder. Build in Charleston area such as, Awendaw, McClellanville, Mt. Pleasant, Summerville and Ravenal just to name a few.

$190,000-$750,000

Anthony DeZinna 1972

27 15

Historic Downtown Charleston Kiawah Island Seabrook Island

$300,000-$2,999,999

Joe W. Davis, Joe L. Lobert 2006

25 3

Charleston, Mount Pleasant, Kiawah, James island, Johns Island, Daniel Island, West Ashley, Awaendaw, & North Charleston

$300,000-$1,000,000

Chuck Bennett 1986

25 45

Charleston, Dorchester, Berkeley Counties

$190,000-$800,000

Bob Hilliard 2004

24 6

Ashley Park Townhomes in Charleston, Somerset Point in Ladys Island.

$170,000-$400,000

Tim Blackwelder, Faith Geiger, Hilton C. Smith III 2004

19 2

Fosters Glenn, Hidden Hills, Valentine Cove & Linnen Place

$225,000-$450,000

Ryan Smith, Mark Smith 2006

16 2

Charleston County

$300,000-$1,000,000

Sam Lisi 2000

15 15

Charleston, Mt. Pleasant, Sullivan's Island, Isle of Palms, Daniel Island

$618,000-$2,900,000

Steven Kendrick 1999

14 150

James Island, Headquarters Island, North Charleston, Ravenel, Hollywood, John's Island, Park Circle, Kiawah Island, Charleston, Summerville, Hanahan, Goose Creek, Mount Pleasant, West Ashley, Folly Beach, Sullivan's Island, Isle of Palms

$225,000-$750,000

Joellen P. Rogers, Steve W. Tumbleston, Butch Clayton 1989

12 20

James, Johns, and Wadmalaw Islands

$100,000-$180,000

John Rhoden Jr. 1978

11 1

Kiawah Island & Seabrook Island

$1,000,000-$3,000,000

Dave Sondles 1987

10 3

Isle of Palms, Sullivan's Island, Mt. Pleasant, Charleston, James Island.

$200,000-$2,000,000

Andrew Hager 1992

10 7

Charleston County

$450,000-$2,000,000

Patrick Henry 1988

View this list online at www.scbiznews.com/data. Although every effort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to lists@scbiznews.com or go to www.tinyurl.com/joinourlists.

Researched by Business Journal staff

24

IN FOCUS: Residential real estate

www.charlestonbusiness.com

Feb. 9 - 22, 2015

Homebuilders

Ranked by No. of Permits Granted in 2013 Phone / Website Email

Permits / Employees

Developments/Areas in South Carolina

Representative Price Range

Top Local Official(s) / Year Founded

843-971-5100 www.ashtonwoods.com ryan.lewis@ashtonwoods.com

8 14

Daniel Island, Watermark, Darrell Creek, Carnes Crossroads, Strawberry Station, Moultrie Park, Sea Island Farms, Fleming, Freeman's Point, Stratton by the Sound

$200,000-$1,100,000

Ryan B. Lewis 1989

Cook Bonner Construction Inc. 147 Wappoo Creek Drive, Suite 302 Charleston, SC 29412

843-795-9301 www.cookbonner.com info@cookbonner.com

8 9

Daniel Island, Johns Island, James Island, Mt. Pleasant, Isle of Palms, Kiawah, Seabrook

$500,000-$3,000,000

George Cook, Rick Bonner 1976

Daly & Sawyer Construction Inc. 855 Coleman Blvd.

Mount Pleasant, SC 29464

843-884-7195 www.dalyandsawyer.com office@dalyandsawyer.com

8 9

Sullivan's Island, Isle of Palms, Mount Pleasant Isle of Palms Downtown Charleston James Island Kiawah

$150,000-$5,000,000

Michael F. Daly, Neil P. Sawyer 1985

Design Builders, Inc. 694 Wildwood Road Charleston, SC 29412

843-795-1779 www.designbuilders.us designbuilders@bellsouth.net

8 4

Charleston, Mount Pleasant, Goose Creek, Summerville, West Ashley, Johns Island, James Island, & Folly Beach

$200,000-$750,000

Bill Douglas 1991

Seamar Construction Group Inc. 3690 Bohicket Road, Suite 3C Johns Island, SC 29455

843-768-1758 www.seamarconstruction.com info@seamarconstruction.com

8 9

Charleston County, Dorchester County and Berkeley County. Historic Renovations in downtown Charleston.

$500,000-$2,750,000

Richard J. Faenza, Charles L. Hudson Jr., Steven C. Parham 2004

843-352-2370 www.amerisips.com tina@amerisips.com

7 10

Charleston Tri-county area

$450,000-$1,500,000

Steve Bostic, Tina Bostic, Stephen Carroll 2009

843-297-1424 www.jacksonbuilthomes.com richard@jacksonbuilthomes.com

7 3

Daniel Island Mount Pleasant

$600,000-$1,600,000

Richard A. Jackson Jr. 2009

843-475-3317 www.theverdicompany.com amy@theverdicompany.com

7 4

Oak Terrace Preserve, Park Circle, Darryl Creek, Dunes West, Mt. Pleasant, Kiawah River Estates,

$250,000-$850,000

David Hill, Amy Hill 2005

843-856-8915 Carolinaprofessionalbuilder.com cpbuilders@bellsouth.net

6 3

Charleston, Dorchester, Berkeley Counties

$750,000-$4,000,000

Herbert L. Cantley 1989

843-768-2404 www.dolphinbuilders.com csouth@dolphinbuilders.com

6 8

I'on, Daniel Island, Sullivan Island,Kiawah Island, Downtown Charleston

$900,000-$4,000,000

Christopher Ibsen 1990

843-251-8812 master-homebuilder.com antonio@master-homebuilder.com

6 2

Lowcountry tricity

$185,000-$1,500,000

Valmar Nunes, Antonio Ribeiro 2012

Phillip W. Smith, General Contractor, Inc. 465 W. Coleman Blvd. Suite 301 Mount Pleasant, SC 29464

843-881-9828 www.phillipsmithcontractor.com info@phillipsmithcontractor.com

6 8

Sullivan's Island, Isle of Palms, Mt. Pleasant, Daniel Island, Kiawah - Charleston Tri-County Area.

$1,160,000-$2,370,000

Phillip W. Smith 1990

Priester's Custom Contracting LLC 1326 Lark Lane Hanahan, SC 29410

843-200-8495 www.priestercustomhomes.com info@priestercustomhomes.com

6 3

Dunes West, I'On, Daniel Island, Rivertowne Country Club, Parker's Landing, North Creek, Stono Ferry, Wadmalaw Island, Hollywood, Pimlico, Plantation Isle, Indigo Island Reserve, Bonneau Beach, Croghan's Landing, James Island, downtown Charleston, Summerville, Goose Creek, Mt Pleasant

$750,000-$2,000,000

Rochelle K. Priester 2003

R.M. Buck Builders Inc. 950 Main Road Johns Island, SC 29455

843-559-1155 www.rmbuckbuilders.com ryan@rmbuckbuilders.com

6 15

Kiawah, Seabrook, Wadmalaw, Johns, James, Folly Island and surrounding areas.

$1,300,000-$10,000,000

Ryan M. Buck 1977

Tidewater Homes LLC 837 Robert E Lee Blvd.

Charleston, SC 29412

843-514-9795 wally@buildtidewater.com

6 2

Throughout Charleston, Mt. Pleasant and the barrier islands.

$250,000-$3,000,000

Wally G. Seinsheimer III 2006

Campbell-Gallagher Construction, LLC 3235 Foster's Glenn Drive Johns Island, SC 29455

843-296-9504 www.campbell-gallagher.com jim@campbell-gallagher.com

5 2

Tri-county area

$145,000-$700,000

Jim Gallagher 2011

Epic Development Group LLC 3463 Maybank Highway Johns Island, SC 29455

843-224-7151 www.epicdevelopmentsc.com epickevin@comcast.net

5 5

Kiawah Island, Charleston, Johns Island, Sullivan's Island

$750,000-$2,500,000

Kevin J Flynn, Robby Robinson 2005

843-628-7939 www.kittrell2.com matt@kittrell2.com

5 1

Mt Pleasant, Daniel Island, James Island

$500,000-$900,000

Matt Hamnett 2007

843-568-1350 www.mksmithbuilders.com ms@mksmithbuilders.com

5 1

Folly Beach, Wadmalaw, Johns Island, James Island, Daniel Island, Kiawah, Seabrook, Downtown Charleston

$750,000-$1,300,000

Matt Smith 2003

Company Ashton Woods Homes 501 Bramson Court, Suite 100 Mount Pleasant, SC 29464

Amerisips Homes 2658 Clements Ferry Rd. Charleston, SC 29492 JacksonBuilt Custom Homes 901 Island Park Drive Daniel Island, SC 29492 The Verdi Group 1450 Fifth St. W., Suite 300 North Charleston, SC 29405 Carolina Professional Builders LLC 871 Low Country Blvd.

Mount Pleasant, SC 29464 Dolphin Architects & Builders 3730 Bohicket Road, Suite 6 Johns Island, SC 29455 Master Home Builder 668 Marina Drive Suite A3 Charleston, SC 29492

Kittrell II Residential Construction & Remodeling 415 Morrison St Mt Pleasant, SC 29464 M.K. Smith Builders Ltd. Co. P.O. Box 30220 Charleston, SC 29417

View this list online at www.scbiznews.com/data. Although every effort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to lists@scbiznews.com or go to www.tinyurl.com/joinourlists.

Researched by Business Journal staff

IN FOCUS: Residential real estate

Feb. 9 -22, 2015

www.charlestonbusiness.com 25

Homebuilders

Ranked by No. of Permits Granted in 2013

Phone / Website Email

Permits / Employees

Developments/Areas in South Carolina

Representative Price Range

Top Local Official(s) / Year Founded

843-693-2117 www.riverlandbuilders.net riverlandbuilders@comcast.net

5 2

Tri-county Area

$250,000-$1,500,000

Jon Goldfarb 2005

843-573-2444 www.artisticdesignandconstruction.com info@artisticdesignandconstruction.com

4 5

Charleston, Berkeley and Dorchester Counties

$275,000-$1,800,000

Alicia L. Kinard 2003

843-416-8907 www.bmfdev.com info@bmfdev.com

4 4

Kiawah, Seabrook, West Ashley, East Cooper, IOP all of the Charleston area.

$250,000-$2,500,000

Chris Brassfield, Bernard Fulk, Dale McBreairty 2006

843-768-8525 www.BuffingtonHomes.com Cathy@BuffingtonHomes.com

4 5

Kiawah Island, Johns Island, Seabrook Islabd

$1,800,000-$5,000,000

Daniel O. Buffington, Cathy Buffington, Trevor Buffington 1996

843-277-6226 http://www.hunterquinnhomes.com/ info@hunterquinnhomes.com

4 5

Colony North, The Park at Rivers Edge, The Village at Fairmont South

$129,000-$200,000

Will Herring 2010

Brock Built Homes 669 Marina Drive, Suite B1 Charleston, SC 29492

843-701-4677 www.brockbuilt.com jenniferangelich@brockbuilt.com

3 7

Medway Landing, Goose Creek; Long Needles Estates, Summerville Gardner's ViewSummerville Stonoview- Johns Island

$180,000-$600,000

Albert van Overeem 1984

Canton Construction Co. Inc. 1761 Southwick Drive Johns Island, SC 29455

843-795-6388 www.cantonconstructionco.com bcantonco@bellsouth.net

3 3

Kiawah and surrounding areas

$650,000-$2,500,000

Bruce O. Canton 1974

Cinder Creek Construction Inc. 43 Wappoo Creek Place Charleston, SC 29412

843-768-0784 www.cindercreek.net info@cindercreek.net

3 2

Johns Island, Kiawah Island, Seabrook Island, Charleston, Mt. Pleasant

$540,000-$800,000

Neal S. Crowell 2008

Gary C. Brown Construction Inc 31 Center St. Folly Beach, SC 29439

843-588-2954 gcb294@aol.com

3 2

Folly Beach, James Island, Johns Island, and Wadmalaw Island

$400,000-$3,500,000

Gary C. Brown 1989

Suiter Construction Co. Inc. 501 Belle Hall Parkway, Suite 201 Mount Pleasant, SC 29464

843-884-8447 www.suiterconstruction.com danielle@suiterconstruction.com

3 3

Charleston and surrounding areas including Mount Pleasant, Daniel Island, Isle of Palms, Sullivan's Island, Awendaw, Kiawah/Seabrook Island

$550,000-$150,000,000

Jeffrey D. Suiter 1987

Tupperway Construction Co. Inc 141 White Fence Lane Summerville, SC 29483

843-873-4894 www.tupperwayconstruction.com gtupper@sc.rr.com

3 2

Charleston, Berkerly, & Dorchester

$275,000-$750,000

George L. Tupper III, Virginia T. Pennington 1978

East Cooper Habitat for Humanity Inc. 1558 Ben Sawyer Blvd., Suite A Mount Pleasant, SC 29464

843-881-2600 www.eastcooperhabitat.org information@eastcooperhabitat.org

2 4

Mount Pleasant, Awendaw, McClellanville, Cainhoy, Huger.

$100,000-$180,000

Robert S. Hervey 1990

843-761-8989 www.berkeleyhabitat.org office@berkeleyhabitat.org

1 10

Berkeley County

$75,000-$100,000

Bryant Knepp 1991

Osprey Construction Co. Inc. 3690 Bohicket Road, Suite 2B Johns Island, SC 29455

843-768-4150 www.ospreyinc.com -

1 5

Kiawah and Seabrook Islands

$1,000,000-$2,000,000

C. Farris Cowart 1991

Rogers Construction Co. Inc. 756 brown Drive James Island, SC 29412

843-795-4019 www.rogersconstructionco.com rogcorealty@att.net

3

tri-county area

$120,000-$1,350,000

1975

Suiter Construction Co. LLC 501 Belle Hall Parkway, Suite 201 Mount Pleasant, SC 29464

843-884-8447 www.suiterconstruction.com danielle@suiterconstruction.com

3

-

—-

Jeffrey D. Suiter 1987

Company Riverland Builders LLC P.O. Box 14516 Charleston, SC 29422

Artistic Design & Construction Inc. 1038 Jenkins Road, Unit 101 Charleston, SC 29407

Brassfield, McBreairty & Fulk Development Co. LLC 3333 Maybank Highway Johns Island, SC 29455

Buffington Homes L.P. 3690 Betsy Kerrison Parkway, Suite 2D Johns Island, SC 29455

Hunter Quinn Homes 220 Church Street, Suite 102 Mount Pleasant, SC 29464

Habitat for Humanity of Berkeley County 408 S. Live Oak Drive Moncks Corner, SC 29461

View this list online at www.scbiznews.com/data. Although every effort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to lists@scbiznews.com or go to www.tinyurl.com/joinourlists.

Researched by Business Journal staff

26

www.charlestonbusiness.com

Feb. 9 - 22, 2015

At Work:

People, places and happenings across the Lowcountry

Hot Properties 30 Viewpoint 31

People in the News

Business Digest

FINANCIAL SERVICES

Oakbrook Rotary salutes past presidents Oakbrook Rotary President Judy Watts was honored at a recent club meeting as members presented the club’s annual wall plaque listing all of the club presidents since its founding in 1991. President-elect Matt Coakley and Jim Friar (president 1992-93) read the names of the club’s presidents from the wall plaque, which is mounted on the clubhouse wall at Wescott Plantation Country Clubhouse. The club was formed as an extension of the Summerville Lunch Club by Rotarians Brunson Westbury and Converse Chellis. Matt Coakley, President Elect is scheduled to become president in July.

Judy Watts, Oakbrook Rotary president for 2014-15, is assisted by president-elect Matt Coakley in mounting the wall plaque roster of club presidents. A total of 24 Oakbrook Rotarians have served as the club’s president.

Benefitfocus holding One Place conference in March

Benefitfocus One Place 2015 will take place March 9-12 in Orlando, Fla. The annual conference will include strategy sessions, software training and networking events. Industry experts will speak on management of health care and benefits amid private exchanges, consumerism and regulatory demands. Sessions will be eligible for Human Resources Certification Institute continuing education credits and software certifications. Topics include creation of a private exchange, the Cadillac Tax, and health and wellness benefit trends.

Trident Tech offering HR management certification courses

Trident Technical College’s Division of Continuing Education and Economic Development is offering a new certification training program in partnership with the Society for Human Resource Management. Human resources professionals will be able to obtain the society’s Certified Professional and Senior Certified Professional certifications.

Departure Media to provide in-terminal advertising in Ohio

Charleston-based Departure Media has been awarded the contract for in-terminal advertising at Dayton International Airport. Departure has implemented a program to complement the airport’s newly renovated interior. It targets local, regional, and national businesses. More than 2 million people pass through the Dayton airport annually.

16 new recruits graduate into Charleston Fire Department

The Charleston Fire Department has graduated recruit class 14-02. The graduates are now certified level 2 firefighters, accredited by the International Fire Service Accreditation Congress. Classes included topics such as hazardous materials awareness and operations, firefighting fundamentals, emergency vehicle driver training and crew resource management.

The recruits were Jason Anderson, Columbus, Wis., Robert Bechtel, St. Louis, Michael Bishop, Orrville, Ohio, Jason Blackburn, Brazil, Ind., Andrew Creighton, Damascus, Md., Adam Davis, South Bend, Ind., William Kovalczyk, Grayson, Ga., Joe Lenihan, East Quogue, N.Y., Daniel Melie, Clinton, N.Y., Sean Nolan, Haverhill, Mass., Ranoslav Petrovski, Murrieta, Calif., Jake Platts, Anderson, Parker Shanks, Dayton, Ohio, Edwin Snell, Snellville, Ga., Lucas Stokes, Sitka, Alaska, Matthew Wilson, James Island.

Stubbs Muldrow Herin Architects named Firm of the Year

Stubbs Muldrow Herin Architects of Mount Pleasant was named the 2014 Architectural Firm of the Year be the Charleston Contractors’ Association, an award based on professionalism and excellence in their field. Novus Architects and LS3P Associates were also named as finalists for the award. Stubbs Muldrow Herin focuses on planning, problem-solving, sustainability and appropriate architecture for place.

Edmund’s Oast named Imbibe’s Beer Bar of the Year

Edmund’s Oast has been selected for the second year in a row as one of Imbibe magazine’s 2015 Places to Watch, and it was named Beer Bar of the Year. The annual Imbibe 75 names 75 people, places and flavors to watch, as chosen by Imbibe’s editors. The magazine noted that Edmund’s Oast is “taking Charleston’s already surging food-and-drinks scene and shifting it into overdrive.” The beer was highlighted, including mention of the house beers — Lord Proprietors, Nameless City and Peanut Butter & Jelly.

High Wire Distilling releases limited-edition liquors

High Wire Distilling has unveiled two new limited-edition liquors, Watermelon Brandy and Lowcountry Agricole. The brandy is made from Bradford watermelons, which are known for their sweetness, that were grown in Sumter. The hand-juicing of the watermelons produced 143 750-milliliter bottles. The rhum agricole is made of sugar cane juice grown and pressed on Bair’s Farm in St. George. One acre of sugar cane was pressed, producing 233 750 mL bottles.

Pediatric dentist honored for social media efforts

Coastal Kids Dental & Braces was ranked the No. 1 pediatric dentist on social media by www.1Dental.com, a blog of dental and health news. Coastal Kids Dental & Braces has offices in Hanahan, Dorchester Road, West Ashley, Moncks Corner and Walterboro.

See BUSINESS DIGEST, Page 30 ➤

First Citizens has promoted Aaron Justice to wealth adviser in the company’s East Bay Street office. Justice will be responsible for providing wealth clients with Justice financial plans and solutions, including investment management, trust and estate planning, retirement planning and insurance services.

Justice holds a bachelor’s degree from Appalachian State University and earned an MBA from The Citadel. He also has a Master’s Degree in family financial planning from Iowa State University.

South State Bank has hired Helen Pratt-Thomas as a senior wealth commercial banker at its Charleston Broad Street office.

Pratt-Thomas prePratt-Thomas viously worked with Wells-Fargo for 13 years in various positions including senior private banker and commercial relationship manager.

Pratt-Thomas graduated a summa cum laude from The College of Charleston with a Bachelor of Arts degree in Latin and Greek.

Meaghan Patterson has been named a teller at South Atlantic Bank’s Mount Pleasant office. Patterson is a graduate of the State University of New York Patterson at Potsdam with a Bachelor of Arts degree in English and speech communication.

REAL ESTATE John Townsend Cooper has joined Prospect Real Estate Partners. Cooper’s background includes transactions of residential homes, commercial and investCooper ment properties and land in the Charleston area. He currently holds an S.C. real estate broker’s license and S.C. residential builder’s license and is an attorney admitted to the S.C. Bar. See People, Page 29

➤

28

www.charlestonbusiness.com

Feb. 9 - 22, 2015

Budget deficit OK for now, but problems loom later

T

he Congressional Budget Office recently release updated budget forecasts through 2025. For the next three years it expects the budget gap to remain in a range between $400 billion $500 billion, which is acceptable. Toward the end of the decade they will once begin to climb and approach $1 trillion. That is not acceptable. It would be desirable for ConStephen D. gress and the White Slifer House to take action now to reduce the deficit to avoid more wrenching changes at some point down the road. But because the deficit is not a problem today, there is virtually no chance of meaningful deficit reduction between now and the 2016 election.

The budget deficit for fiscal year 2014 was $483 billion and the CBO expects it to be $467 billion this year, which would be 2.6% of GDP. Economists believe a budget deficit that is 3.0% of GDP is sustainable. The CBO expects the deficit to remain below the 3.0% mark for the balance of this decade as the economy continues to expand at a brisk pace. But beyond 2020, the deficit begins to climb and approaches $1 trillion. This widening budget gap is driven by demographics.

As increasing numbers of baby boomers reach retirement age, they begin to collect Social Security benefits and become eligible for Medicare.

The budget problem intensifies dramatically in the years beyond the CBO’s current 10-year forecast horizon. CBO’s 25-year budget forecast is ominous.

Beginning in 2020, the projected budget deficits climb above the acceptable 3.0% mark and reach 6.3% of GDP by 2039.

To finance the budget deficit for any given year, the Treasury must issue an equivalent amount of debt. For example, if the budget deficit is $1 trillion, the Treasury must issue $1 trillion of debt to finance the deficit. The problem with persistent deficits is that their impact on debt outstanding is cumulative. If the Treasury issues $1 trillion of debt to finance the budget deficit in year one and faces another $1 billion shortfall in year two, by the end of that second year, the debt outstanding has climbed to $2 trillion.

Using the Treasury’s long-term budget projections from July of last year the steadily yawning budget gap beyond 2020 begins to take its toll on debt outstanding as a percent of GDP. It steadily climbs and reaches 107% of GDP by 2039. Economists generally regard anything above the 90% mark as problematic for a couple of

“Greece’s debt to GDP ratio is currently 165%. That is probably not the kind of company we want to keep.” reasons. First, the annual interest payments used to finance the budget deficit become an increasingly large percentage of GDP. Second, government spending becomes so large that it becomes difficult for corporations to raise the funds they require for investment. Third, foreign investors may start to worry about a country’s ability to repay that debt. Because foreigners own about one-third of all U.S. Treasury debt outstanding, any cutback in their willingness to hold Treasury debt would be problematic.

That is the good news. The bad news is that the CBO does not incorporate any recessions into its projections. The current expansion began in July 2009.

The longest expansion on record lasted exactly 10 years. So beyond the middle of 2019, the economy is probably on borrowed time. During a recession the budget deficit widens dramatically. Revenues decline as the economy dips into recession. Government spending increases as unemployment, welfare, and Medicaid benefits climb. Thus, a debt to GDP forecast of 107% by 2039 probably represents a best case scenario. With slightly less optimistic assumptions a debt to GDP ratio of 150% becomes possible.

To put this in context, Greece’s debt to GDP ratio is currently 165%. That is probably not the kind of company we want to keep.

These projections are not cast in stone.

Congress could take action to alleviate the problem. Taxes could be raised, spending could be reduced, or some combination of the two. In this particular case, the problem is concentrated on the spending side as government expenditures climb far above the 20.5% average pace of spending for the past 50 years. The baby boomers are at the heart of the problem. Thus, it is clear that somewhere along the line, government spending, entitlement spending in particular, must be cut. Unfortunately, with budget deficits likely to be in check for the next several years, there is virtually no chance that any meaningful deficit reduction will occur between now and the 2016 election. Too bad. No action today means that far more drastic cuts will be required in the years ahead. cr bj

Reach economist Stephen D. Slifer at steve@numbernomics.com.

Feb. 9 -22, 2015

www.charlestonbusiness.com 29

People in the News One, secretary Faye Merritt of Carolina One, chaplain Sally Castengera of Daniel Island Real Estate, charities chairwoman Joanne Harwell of Coldwell Banker United and program chairwoman Kay Kennerty of Agent Owned Real Estate.

Boyer

Fayall

Powell

Brown

Gail L. Boyer and Rita C. Fayall have joined Carolina One Real Estate Services’ Metro North office in Goose Creek; Shannon Powell has joined the Folly Walters Road office and Lisa Brown and Stephanie Lynne Walters have been hired in Summerville. Boyer graduated from the College of the Albemarle in Elizabeth City, N.C., and previously worked as a medical coder for Riverside Medical Center in Newport News, Va. Fayall, graduated from the University of Baltimore with a Master of Arts in legal and ethical studies. She previously was a community organizer and a co-founder of a schoolbased mentoring program in Baltimore City, Md. Powell previously produced a food show for Georgia Public Broadcasting, owned a gourmet foods store specializing in Southern confections and was a food columnist in Augusta, Ga. Brown previously owned and operated a Domestic Divas franchise for 12 years in Greenville. Walters previously was an apartment leasing agent in Columbia and worked for Consolidated Electrical Distributors in North Charleston.

The East Cooper Top Producers Club has elected Timm W. Gipe, a Realtor associate with Carolina One Real Estate’s Mount Pleasant Coleman Boulevard office, Gipe as president. Gipe served as president of the Charleston Trident Association of Realtors in 1983 and was honored in 2013 as Realtor emeritus by the National Association of Realtors.

Other officers elected are vice president Barbara McCullough of Re/Max Pro Real Estate, treasurer Steve Kaul of Carolina

Carolina One New Homes has formed an affiliation with Chuck Lattif of Arthur Rutenberg Homes, Coastal Premier Homes division. Lattif began his career working for three of the largest homebuilding companies in the United States: NVR, Weyerhaeuser and Pulte. Sales consultant Sharon Cassidy has also joined Arthur Rutenberg Homes. She has nearly 10 years of experience in new home sales.

NAI Avant has hired Doug Roland as an investment sales adviser in its Charleston office. Roland has nine years of experience in the real estate industry, most Roland recently working with Marcus & Millichap, specializing in asset and retail shopping center disposition. Roland will focus on the disposition of single-tenant, net-leased assets and retail shopping centers. He has a bachelor’s degree in political science from the University of Georgia.

Stephen Carroll has been hired as the broker in charge for residential development site selection for Landcrafters Inc. Real Estate and Development.

Kevin Shaw has joined their Mount Pleasant office of AgentOwned Realty. Shaw attended Trident Technical College and has been a licensed realtor Shaw since 2007. He has also worked in the automotive industry for 20 years.

Dowd

Jane Dowd has joined William Means Real Estate.

She has worked as a licensed Realtor since 2005. Dowd earned a degree in business administration from the College of Charleston.

Karl Finkelstein has been elected president of the Appraisal Institute’s S.C. chapter by the organization’s board of directors. Finkelstein is senior managing

director of Valbridge Property Advisors /Atlantic Appraisals and director of marketing for Valbridge Property Advisors Inc. He has been an appraiser since 1998.

Commercial real estate developer Twin Rivers Capital LLC has named Andrew Smith development manager. Smith is responsible for all aspects of the develSmith opment process, from getting a site under contract through entitlement and permitting. He also coordinates with property owners, site vendors, municipalities and tenants. He previously worked as a Realtor and as a landscape architect.

MANUFACTURING DuPont has named Ervette Broadnax as the new manager of its Cooper River plant, replacing Jerry Good. Broadnax holds a Bachelor of Science degree in chemical engineering from the University of Tennessee. She began her career with DuPont in 1978 as a co-op student while in the Minority Engineering Scholarship Program.

TECHNOLOGY Blackbaud Inc. has elected Peter “Pete” Kight, founder and former chairman and CEO of CheckFree, to its board of directors. Kight served as CEO of CheckFree Kight until its merger with Fiserv Inc. in 2007. He is also a member of the board at Huntington Bancshares Inc. He previously has served on the boards of Fiserv, Akamai Inc. Technologies and Manhattan Associates. Blackbaud’s board also includes Andrew M. Leitch, chairman; Mike Gianoni, president and CEO; and directors George Ellis, Timothy Chou, David Golden, Sarah Nash and Joyce M. Nelson.

LAW Nexsen Pruet has elected Andrew Dennis as a member.

Dennis focuses on corporate and transactional law, assisting companies in formation, acquisition Dennis and sale. He is a 2013 graduate of Leadership Charleston and a 2010 graduate of Leadership Berkeley.

Submit items to editorial@scbiznews.com with “People,” “Business Digest” or “Hot Properties” in the subject line.

Publication is subject to editorial discretion.

30

www.charlestonbusiness.com

Feb. 9 - 22, 2015

Business Digest New restaurant Cannon Green opens on Spring Street

Garden & Gun magazine holds Jubilee kickoff breakfast

Garden & Gun held its second annual Jubilee kickoff breakfast with Gov. Nikki Haley as the featured guest. Pictured are board Chairman Dan Blumenstock (from left) of the Charleston Area Convention & Visitors Bureau; Duane Parrish, director of the S.C. Department of Parks, Recreation & Tourism; Gov. Nikki Haley; David DiBenedetto, editor in chief of Garden & Gun; Rebecca Wesson Darwin, president of Garden & Gun; and Helen Hill, president of the Charleston Area Convention & Visitors Bureau.

Cannon Green has opened at 103 Spring St. The 80-seat restaurant is run by Dean Porter Andrews and Lynn Easton of Easton Porter Group, and David Dabney and Anne Bowen Dabney of Stems.

Amalia Scatena, formerly of Pippin Hill Farm & Vineyards in Charlottesville, Va., is executive chef. The food is Mediterranean-influenced, inspired by Scatena’s San Francisco childhood and culinary schooling in Italy. The decor includes custom tables by Bryan Deel Timberwerks, walls of antique mirrors from Charleston Architectural Glass, light fixtures and ironwork from Avrett Lighting, and paintings from Teil Duncan and Blakely Little.

bers’ share of the co-op’s margins. The total distribution amount of $1,728,973.91 was mailed to the members in mid-December, with the portion each member receiving based on the member’s total billings.

The refund also included $646,565.24 for deceased patronage, paid to members’ heirs.

Of the money taken in during the year, 25% is returned and 75% is held in reserve for improvements and line construction.

BlueCross employees, foundation give $17M to S.C. nonprofits

Berkeley Electric Cooperative returned almost $2 million to its members in December in the form of capital credits, the mem-

BlueCross BlueShield of South Carolina employees and its foundation gave $17.4 million to nonprofits and other institutions serving South Carolina in 2014. In the Lowcountry, grant recipients included Charleston Southern University, which received a three-year grant to fund scholarships for nursing students who commit to work in home-based nursing; Our Lady of Mercy Community Outreach Services, which was given a three-year grant to increase dental services on Johns Island;

retail space at 9730 Dorchester Road in Summerville from Shops at Wescott LLC. Brian Aiken of Coldwell Banker Commercial Atlantic International Inc. represented the landlord.

Robert Pratt of Re/Max Pro Realty represented the landlord, Midland Park LLC, in the lease of 800 square feet of space at 100 Morgan Place, Suite B, in Summerville to Dr. William Staley.

Reid Davis and Pete Harper of Lee & Associates Charleston represented the landlord, GPF-885 IPD LLC, in the lease of a 6,091-square-foot office at 885 Island Park Drive on Daniel Island to Student Transportation of America Inc.

David Grubbs and Scott Peevy of NAI Avant represented the landlord, King and Queen Co., in the lease of 1,204 square feet of office space in the King and Queen Building in downtown Charleston. Ruthie Ravenel of Daniel Ravenel Sotheby’s International Realty represented the tenant.

Berkeley Electric Cooperative gives back nearly $2 million to members

and the Charleston-based Mothers’ Milk Bank of South Carolina, which was given a one-year grant to purchase equipment for the sterilization process

TD Charitable Foundation gives $100,000 to Charleston nonprofit

The TD Charitable Foundation has given $100,000 to the Charleston Department of Housing and Community Development as part of its Housing for Everyone grants. The award was part of an overall $2.5 million round of funding for affordable housing nationwide.

Hot Properties The following commercial real estate transactions were recently completed in the Charleston area. For weekly updates on commercial deals, see the Hot Properties feature every Monday in the Daily Journal email or online at www. charlestonbusiness.com. To submit items for the feature, send email to dailyjournal@ scbiznews.com.

Brent Case and Kristen Krause of Coldwell Banker Commercial Atlantic International Inc. represented the landlord, Nirenblatt, Nirenblatt & Hoffman LLP, in the lease of a 3,600-sqare-foot office space at 1650 Sam Rittenberg Blvd. in Charleston to US Investigations Services LLC. Kristen Krause of Coldwell Banker Commercial Atlantic International Inc. represented the tenant, Carriage House Auction Gallery in the lease of a 27,500-square-foot retail space at 1757 Ashley River Road in Charleston.

Kristen Krause of Coldwell Banker Commercial Atlantic International Inc. represented the tenant, All My Sons Moving and Storage, in the lease of a 2,500-square-foot office at 3749 Ashley Phosphate Road in North Charleston. Tradd Varner of Coldwell Banker Commercial Atlantic International Inc. represented the landlord, DWW II Properties LLC. Tradd Varner of Coldwell Banker Commercial Atlantic International Inc. represented the tenant, Education Station LLC, in the lease of a 4,420-square-foot

Buddy Bebergal and Kit Regnery of Carolina Commercial Real Estate represented the buyer, King Street Realty LLC, in the purchase of a two-story, 9,380-square-foot retail and apartment building at 474-476 King St for $4.2 million from 474-476 King LLC. The seller was self-represented.

Philip Owens of Cushman & Wakefield Thalhimer represented the buyer, 101 Harth Place LLC, and the seller, Atlas SC I SPE LLC, in the sale of a 2,420-square-foot medical office at 101 Harth Place in Summerville.

Jonathan Chalfie of Lee & Associates Charleston represented the tenant, Southern Pines Land & Timber LLC, in the lease of 1,300 square feet of office space at 1752 Jessamine Road in Charleston. Joyner Beasley of RentCharleston.com represented the landlord.

Dexter Rumsey of NAI Avant represented the purchaser, Harbor House Inc., in the sale of 150 Wentworth St. in Charleston for $3.95 million.

Curtis M. Little of Cushman & Wakefield Thalhimer represented the buyer, Jeremy A. Reaves, in the purchase of 0.44 acres of land at 703 N. Main St. in Summerville from 703 N. Main Group LLP for $727,500.

Todd P. Garrett of Avison Young represented the landlord, Industry Associates, in the lease extension of a 10,000-square-foot office and warehouse space at 105 Button Hall in Goose Creek to East Coast Distributors. Thomas Boulware of NAI Avant represented the tenant.

Robert Pratt of Re/Max Pro Realty represented the landlord, Midland Park LLC, in the lease of 2,050 square feet of space at 103 Harth Place, Suite A, in Summerville to Equilibrium Diabetes Center LLC.

Todd P. Garrett of Avison Young represented the landlord, Roger K. Davis, in the lease of a 1,950-square-foot office and warehouse space at 2551 Oscar Johnson Drive in North Charleston to Miguel and Maria Castillo,

doing business as Spencer & Graham Medical Corp. LLC. Tradd Varner of Coldwell Banker Commercial represented the tenant.

Bryan Perrucci and Chad Yonce of Southeastern Management Group represented the landlord, Yaschik Development Co. Inc., in the lease of 1,920 square feet of retail space at 821 Orleans Road in West Ashley to Jeff Cook Real Estate LLC. Jonathan Chalfie of Lee & Associates Charleston represented the landlord, Azalea Properties, in the lease of a 3,203-squarefoot office suite at 884 Johnnie Dodds Blvd. in Mount Pleasant to Greenbax Enterprises Inc. Miles Barkley of Lee & Associates Charleston represented the tenant.

Chad Yonce of Southeastern Management Group represented the tenant, Engaging Creative Minds, in the lease of 1,000 square feet of office space at 635 East Bay St. in Charleston from Teras LLC. Harvey Brockinton of Retail Property Advisors represented the landlord.

Todd P. Garrett of Avison Young represented The Sustainability Institute in the lease of a 3,283-square-foot office and warehouse space at 1701 Meeting St. in Charleston from Craig Elwood. John and Joseph Tecklenburg of Clement, Crawford, & Thornhill LLC represented the landlord.

Jeff Yurfest of The Shopping Center Group represented the buyer, Coleman Dining Group, in the purchase of 1970 Maybank Highway.

Submit items to editorial@scbiznews.com with “People,” “Business Digest” or “Hot Properties” in the subject line. Publication is subject to editorial discretion.

Viewpoint:

Views, perspectives and readers’ letters

Photo/File

Obama’s decision to do business with Cuba leverages the magic of commerce

A

classic definition of futility is someone who does the same thing again and again expecting a different result.

Our government has for 50 years maintained a stranglehold on Cuba’s economy with embargoes, travel and other restrictions that aimed to drive the Castro brothers from power. The policy is an abysmal failure.

It has only impoverished the ordinary James T. people of Cuba and Hammond cemented the hold of the Communist leaders on power.

But the younger Castro, Raul, appears to be more pragmatic than his revolutionary firebrand brother. Since taking power, he has gradually loosened the government’s tight grip on personal and economic rights of Cubans. And now, he has released political prisoners to U.S. authorities and agreed to restore diplomatic relations with the American government.

This is good news for everyone: Cubans, Americans and everyone in the Western Hemisphere. For a half-century, our sanctions have kept Cuba a raw bleeding wound in the heart of the Americas.

True normalization will not be easy.

But there is reason to believe that the magic of commerce will change Cuba faster in important ways than a continued failed policy of blockade and embargo.

If you want to know how commerce can affect an authoritarian country, just ask the Chinese.

On the day that President Obama announced his Cuba diplomatic initiative, I was struck by a CNN story about BMW’s luxury car sales. In August, CNN reported that BMW Group sales rose 7% in the first half of 2014. But the shocker number was that in the same period, sales of BMW Group vehicles in China rose 23%. More than 1 million BMW cars have been sold in China, where 30 years ago most people in the country road bicycles.

When I lived and worked in Hong Kong in the 1980s, China was just beginning to throw off the worst excesses of Communist dictatorial rule. Most people in Beijing and Shanghai still wore the drab green “Mao” suits, and clearly had not begun the transition to society where individual rights were valued or assured.

Today, visitors to China see a rising middle class who dress as they wish, buy homes and luxury cars and increasingly let their wishes and demands be known, albeit through a one-party system that retains power in an authoritarian party that is only nominally communist.

China might never become an American-style democracy, but it is clearly evolving into a society where individual expression is valued. And there’s little dispute that trade with the West and commerce in goods and ideas have improved the lives of millions of ordinary Chinese.

They travel abroad in their thousands, attend American universities and have joined the community of nations that seeks a stable and prosperous world order.

Such momentous change does not come overnight. It is sometimes frustratingly slow. But in my lifetime, I have observed nations evolve from tyranny and dictatorship to democracy, from Spain and Portugal, to Chile and Argentina, to Taiwan and South Korea.

In Cuba, the door has been ajar for several years. Certain groups have been allowed to travel there. I have at least four friends who have visited the island nation in the last couple of years. The Obama administration, realizing that a halfcentury of failed policy needs to end, has been quietly working toward an opening.

Already, major American corporations have spoken out about their desire to do business with Cuba, defying the cries of hidebound politicians who would continue failed practices. PepsiCo, Caterpillar, Marriott, Home Depot and Deere & Co. are just a few of the multi-national

companies that want to expand to Cuba.

Polls show that a majority of the general public supports re-establishing diplomatic ties with Cuba. But politically, it remains complex math.

A Florida International University poll conducted earlier this year showed that Cuban Americans in Miami would support changes in U.S. ties with Cuba. A large majority in the FIU poll, 68%, favors re-establishing diplomatic relations with Cuba, while 69% supports the lifting of travel restrictions.

Former Secretary of State Colin Powell opposed ending the Cuban sanctions when he was in office. But after President Obama announced the new path, Powell told CBS News: “This is still a terrible regime, but having diplomatic relations can produce positive change.”

It’s time to end these failed policies of embargo and isolation and extend the benefits of trade and commerce to the more than 11 million Cubans who live in the island nation. Not only is it the right thing to do for those people, it will also open myriad opportunities for new business to companies in South Carolina and across America.

James T. Hammond is the former editor of the Columbia Regional Business Report. Reach him at jthammond46@ gmail.com.

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