Acquisition: September 2022
YOC: 2020
Units: 118
Beds: 357
Asset Type: Mid-Rise
Distance to Campus: 1.0 Miles
Strategy: Core Plus
Summit Place
Charleston, SC
Story
Summit Place was one of the final student developments completed by a prominent multifamily REIT before exiting the student housing space. It was part of the rapid gentrification of the Meeting St. corridor in Charleston, which has seen exponential growth since becoming an opportunity zone in 2017.
Strategy
Though Charleston continued to deliver new multifamily properties at a high rate, the combination of growing rental demand and high underwritten rates for those deliveries meant less competition with student product than might be expected. Considering the College of Charleston’s growth goals, Summit Place would have been attractive at a fair market price. Fortunately, the developer’s urgent exit from the student space forced them to transact well below development cost.
Result
Summit Place continues to experience substantial rent growth as the school continues to mature and the projects delivering around it continue to make it more centrally located.