Project Category: Substantial Improvement Property
The South Cherry Road Development is located on a 1.378 acre site in Rock Hill, SC. The project consists of redeveloping a 7,500 SF existing brick building which will be converted for hospitality, retail, and food service tenants. The property is located across the street to Winthrop University campus and Rock Hill’s District 3 football stadium. The South Cherry Rd. corridor that the property sits on is one of the major intersections in the Rock Hill area for residents, Winthrop University students, and local business traffic. This corridor is slated to become a major thoroughfare for additional traffic from business and tourism fed by new developments around the property. Closing is slated to occur end of March 2019 after rezoning is completed and a target construction start is June/July 2019. Construction for the core/shell and upfits will be completed December 2019 allowing for tenants to move in by the end of the year.
Project Qualification: Substantial Improvement PropertyReal Estate: HospitalityNon-Real Estate: SCTotal Capital Required: $1,905,875Equity Required: $1,870,000Project Control: We have agreement on terms to acquire the key propertyTimeline: 30-90 daysAddress: 198 S Cherry Rd Rock Hill South Carolina 29732 United States
The business plan is to develop the property into an adaptive re-use retail building housing two separate tenants in suites that are approximately 4600 SF and 2400 SF for a total of 7000 SF leasable space. The building would also include a shared outdoor patio area that would include covered and uncovered space for dining and entertainment. Design and construction would encompass reusing the existing 3,900 SF concrete block and brick structure and barrel truss roof along with providing a new 3,500 SF brick structural addition totaling roughly 7400 gross SF. The spaces are being designed towards supporting a sports pub restaurant tenant and a coffee shop + café + wine bar tenant which would provide a boost to the surrounding community that is currently underserved from this type business. A new 2,000 SF outdoor patio would be attached to the exterior of the building at the corner of the property adjacent to the Cherry Rd/Constitution Blvd. intersection. The adjacent residential site would be developed into a parking lot that would support the businesses. The existing driveways at Cherry Rd. and Constitution Boulevard would remain and be modified and an additional driveway would be added on the backside of the parking lot at Bynum Ave. to support traffic flow.
The property is currently under contract and set to close on March 25, 2019 pending due diligence, appraisal, and zoning approval. Construction documents are in the preliminary stages of being produced and are targeted to be submitted to the City of Rock Hill for plan review 1st quarter 2019. Construction would then commence as soon as closing is completed and a building permit is in hand. The projected timeline for construction of the cold dark shell along with the site improvements is 4 - 5 months and it is expected that tenant upfit buildout will occur within that timeline with slight overlap. Target overlap would put the tenant suites available 1 month after completion of the cold dark shell for a total of 6 months construction. Anticipated construction start is late 2nd quarter 2019 with completion of tenant spaces for owner move in to be around November/December 2019. The intent is to develop, lease, and hold the asset long term for cash flow and equity generation.