FILE- Gulls follow a commercial fishing boat as crewmen haul in their catch in the Gulf of Maine, in this Jan. 17, 2012 file photo. TExecutive branch agencies will likely have more difficulty regulating the environment, public health, workplace safety and other issues under a far-reaching decision by the Supreme Court. The court’s 6-3 ruling on Friday overturned a 1984 decision colloquially known as Chevron that has instructed lower courts to defer to federal agencies when laws passed by Congress are not crystal clear. (AP Photo/Robert F. Bukaty, File)
I was going through some recent sales and saw that EnerSys Gigafactory LLC just closed on 321 acres in the Upstate. I found this press release and I’m sure there are several other news storage out there regarding this. The press release says between the state and Greenville County, they got $200MM in incentives to come build here. They plan on a state of the art 500,000 square foot facility that will bring about 500 jobs. Here’s another article about the proposed factory.
South Carolina appears to be a key destination for many of these giant batter facilities as we’ve seen with other deals. The South Carolina Department of Commerce are excellent business deal makers and there are lots of excellent economic development groups in South Carolina that also help.
Building Product with special tax status that few know of yet. Green Zip Tape is something every commercial developer should be considering to lower taxes, increase cash flow while being environmentally friendly.
For example…let’s take a $50MM project. They could see an additional $5MM move from 27.5 / 39 year class life to 5 year by using GZT. That’s nearly a $2MM income tax savings over 5 years. The tax benefits of building with GZT transfer to the new owner. This will be helpful in marketing the property. On top of that you’ll have those who are just thrilled about the sustainabilty / green building components of your building. The cost is a fraction of the benefit.
The IRS gives Green Zip Tape a special tax status because it helps eliminate sheetrock ending up in the land fills when owners need to renovate. The patented technology in the tape allow is to be removed easily from the sheetrock without causing a bunch of damage. The sheetrock panets can then be removed and reused so you end up with removable panels at a fraction of the cost. And you get the tax benefits! It’s genious!
I happen to have been driving by this one regularly as I saw the parcel being developed along Butler Road in Mauldin / Greenville area. So it was nice to get the call from one of the brokers involved in selling the building to see if I could run some numbers for the new owner for cost segregation study.
These buildings are very nice. I enjoy working with brand new buildings – who doesn’t, right?
This one is just getting underway so I don’t have any ballpark results to share but I do expect that it will perform quite well. Medical offices generally do very well with studies. There is often lots of specialty plumbing, electrical, lighting etc. that get identified as 5 year class life property. Whereas most “offices” seem to produce maybe 8-12% for 5 year class life property, most of the medical offices I’ve been working on are seeing 18-20% for the 5 year. 15 year will do fine of course as there is a decent parking lot that surrounds this building.
Image Credit: Franklin Real Estate Development and the Upstate Business Journal
Franklin Real Estate Development has just opened these gorgeous newly renovated executive offices in downtown Greenville. Developer Kurt Wallenborn has done an outstanding job it appears on the renovation and restoration of this historic property. Upstate Business Journal has a story about the renovation.
Check out the office spaces offered at The Franklin.
BizNow has a details on it as well. It’s a great concept and one that I think other developers could mimic. When do we start to see these in Charlotte, Raleigh-Durham, Atlanta and Nashville?
This is a remarkable article about the growth and success of South Carolina as a business powerhouse in the southeast. There has been a lot written about South Carolina and its transition from textiles to advanced manufacturing but this is the most comprehensive piece I have found on the subject.
South Carolina continues to garner attention on the global stage. BMW and Michelin certainly have had a massive impact on that. They are in the Upstate of South Carolina. Boeing in Charleston now also plays that key anchor role in the other part of the state.
There are so many assets here in South Carolina. From a business perspective, it’s a very friendly business climate that starts at the state level. Most counties are friendly as well. The Port of Charleston is a huge driver of commercial success as well as the Inland Port Greer which allows ships to unload in Charleston and run the boxes on rail right to the Upstate where it can then be readily trucked all up and down the east coast.
The quality of life is also quite good across the state. Worldclass beaches and resorts run all along the eastern seaboard of the state from Myrtle Beach down to Charleston and Hilton Head. The Blue Ridge Mountains can be seen and visited through the Upstate just north of Greenville, SC about 45 minutes to an hour.
The cost of living is generally cheaper here in SC than you’ll find in most parts of the country. Property taxes in particular are some of the lowest you’ll find anywhere.
Nearly every week I’ll get asked the question if a particular building would be worth studying. My comment is generally they are all worth studying. Would it be worth it if the fee were $15-$20k? No. But under $5k for a lot of these buildings…all day long. What if you could accelerate or depreciate 10-20% of your building’s cost in the first year? (Each building will vary).
Here’s a brand new development by Jordan Skellie, CCIM with Lee and Associates in Greenville, SC. This is an excellent brand new flex building located in Spartanburg, SC. These kinds of small industrial spaces are in high demand. In other parts of the country they might call these Contractor Garages. This building is within about 3 minutes of entering and exiting the all important I-85 that runs between Atlanta and Charlotte and goes right through Greenville and Spartanburg in the Upstate of South Carolina.
Jordan still has some some available as he just got the Certificate of Occupancy. Reach out to Jordan Skellie if you’re interested in the space.
Renderings by Johnston Design Group and SeamonWhiteside – Upstate Business Journal
The area in and around Bon Secours Wellness Arena has been lacking for years. Now there are a couple of projects that are in the works that will transform the area into an entertainment destination and will be a great complement to Bon Secours.
Miami-based NR Investments looked at the difficult to development triangle location of the former Greenville Memorial Auditorium site. This is not an easy project. What they are proposing looks terrific and I believe will be a great addition to Greenville, SC and will help revitalize this area.
The project has not been fully approved yet. The Design Review Board has asked for a few changes and pushed this out to the June timeframe. It seems like this will get approved once those accommodations have been made.
Below is a short video from the NR Investments partner discussing the site.
