Cost Seg Building

A Blog About Tax Savings for Building Owners

Category: Commercial Development

Cost Segregation for AFC Urgent Care Building

April 11, 2024 /

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.

The Franklin Executive Office Suites Greenville SC

March 19, 2024 /
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.

Tesla’s Electrifying Transformation: Diner, Drive-In Theater, and Charging Station to Replace Shakey’s Pizza Parlor on Santa Monica Boulevard

October 9, 2023 /
Image Credit: @HowardModels – Twitter

Tesla to build a very cool diner and drive-in theater charging station in West Hollywood. Check out Tesla’s new diner proposed for Santa Monica Blvd, Los Angeles, CA.

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?

The South Carolina Success Story: Advanced Manufacturing’s Rise in the Palmetto State

October 9, 2023 /
BMW Spartanburg, SC

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.

Benefits of Cost Segregation for Flex Buildings in Spartanburg, SC

October 7, 2023 /
New Flex Industrial Space – Spartanburg, SC

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.

 

NR Investments of Miami to Revitalize Greenville with Gateway Project Near Bon Secours: Abandoned Memorial Auditorium Site to Undergo Redevelopment

April 10, 2023 /
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.

Outback Steakhouse to Replace Torn Down Ruby Tuesday in Simpsonville, SC

January 30, 2023 /
Photo: Demolition of Former Ruby Tuesday, Simpsonville, SC – John Murphy, Cost Seg Building

Last week as I was heading down Fairview Road in Simpsonville, SC to go have coffee with a local commercial broker and his client, I noticed that demolishion was taking place at the site that once was a Ruby Tuesday. It’s on a killer corner right at Grandview and Fairview Roads in Simpsonville. It’s just off I-385. I don’t know the traffic counts right there off hand but they are massive. There are a number of large strip malls right there in the area and Fairview Road is known for having a heckuva traffic problem.

According to the tax records, NIP Simpsonville LLC purchased the property 12/3/20 for $1,500,000. I just don’t recall if Ruby Tuesday was still operating then or not. I’m thinking maybe Covid killed it off and maybe they were nearing the end of their lease and let it go.

There is a fantastic Facebook Group for Simpsonville residents which may be one of the best Facebook groups I’ve ever belonged to….anyway, the group loves talking about what’s new in the city and someone posted that this building was finally coming down and that a new Outback Steakhouse was going in. It looks like the cost to build that new restaurant will be about $2 million.

I was curious as to how well Outback Steakhouses do with their restaurants and they generate some significant sales. According to the site, Statista, the average sales for an Outback Steakhouse restaurant was $3.8 million in 2021.

California Eliminates Parking Lot Minimums for New Develpments

January 16, 2023 /
Photo Credit – John Murphy, Cost Seg Building

There is a movement afoot in the U.S. for some cities and now even states eliminating parking lot minimums when it comes to new development or redevelopment projects. California has now officially banned parking minimums.

Given the high cost of development and land, this makes sense to allow the developers to put more toward the building itself rather than allocate additional space for parking to meet an arbitary requirement by a city or county council. That said, America hasn’t given up cars yet and people still need parking. It will be interesting to see how this evolves over time.

I can imagine that some developments will scale back too much and word will get out that those developments are hard to get in and out of and may deter customers from showing up. I guess we’ll see how this goes. My guess is we won’t have a good read on this for at least 10 years.

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