200 Rutledge Avenue

Retail-Commercial for Sale
Catylist Listing ID: 30340226
Property Subtypes: Mixed Use
Building Size (RSF): 4,500 SF
Gross Building Area: See Agent
Sale Price: $2,150,000
Unit Price: $477.78 PSF
Property Use Type: Investment
Sale Terms: Cash to Seller
Cap Rate: 5.8%
Last Updated: 9/16/2019

Overview / Comments

200 Rutlege Avenue is a unique investment opportunity that combines an investment-grade tenant with upside income potential. The first floor tenant is an investment-grade credit tenant and was recently listed as a member of the Dow Jones Industrial Average. The tenant signed a 10-year lease and is in the process of building out a specialty pharmacy. The second floor contains two, 2-bed/2-bath, residential units. Both residences are currently leased at below market rents and will expire in July 2019. The building has rights to nine (9) parking spaces within a shared lot with 5 allocated to the first floor tenant and 2 per residential unit.

The building is located within the City of Charleston Accomodations Overlay District which allows for the operation of AirBnB and VRBO units. The local neighborhood— Elliottborough/Cannonborough—is one of Charleston’s most dynamic districts and is a top AirBnB reservation location. The property is located between the MUSC/Roper medical district and the College of Charleston. The blocks surrounding 200 Rutledge are home to dozens of restaurants including the former Hominy Grill, Fuel, Xiao Bao Biscuit, Goulette, and Chez Nous.

The anchor tenant signed a 10-year lease for the first floor of 200 Rutledge Avenue in April 2018, with the rent and 10-year term commencing November 2018. Tenant is currently under construction, renovating the first floor space to create a modern, class ‘A’ specialty pharmacy. Tenant is responsible for the cost and management of the permitting and construction. The base rent is $28/s.f. NET, with a 10% escalation at the beginning of year 6. Tenant is responsible for utilities, and its share of insurance, taxes and CAM charges.

Seller will be completely renovating residential units for conversion to short term rental beginning with the fall season. High standard furnishings and decor will be consistent with competing short term rentals in the area. Income projections are derived from projections prepared by a leading short term rental manager based on surrounding comps. Additionally, the NOI is net of all required management fees. This is a great opportunity for a hands off investor or a more active short term accommodations manager.

Additional Details

Nearest MSA: Charleston-North Charleston
County: Charleston
Submarket/Township: 51 - Peninsula Chas. inside of crosstown
Taxing Authority: Charleston
Tax ID/APN: 460-15-02-072
Zoning: LB - Limited Business
Tenancy: Multiple Tenants
Total Number of Buildings: 1
Number of Stories: 2
Year Built: 1978

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 22,309 59,289 137,473
Median Age: 27.14 34.56 36.34
Households: 9,093 25,119 57,435
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