Multifamily Commercial Conversion Workforce Housing Project

[Brandon Greenplate]

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $1,900,000
Cash invested: $2,450,000

The building, “36 South,” is conveniently located next to the Sea Pines Circle and is now home to 48 employees for the Sea Pines Resort. This was the first successful commercial conversion project to be turned into workforce housing right here on Hilton Head. The project turned out to be a win-win for everyone involved and it would not have been possible without the fantastic team we had in place.

https://ca.finance.yahoo.com/news/once-hilton-head-bank-now-110000007.html

What made you interested in investing in this type of deal?

We also are heavily invested in the Hilton Head market along with our clients owning multiple short-term rentals, long-term rentals, and now a new initiative in workforce housing. Like any other high-end resort market, Hilton Head has had a need for workforce housing for quite some time.

The opportunity to address the biggest need in our local resort, employee/workforce housing. We belive a lot of these large retail banks and not at their highest & best use.

How did you find this deal and how did you negotiate it?

At the end of 2022, we saw an opportunity to turn an old 2-story bank building into workforce housing right on the south end of Hilton Head. Our goal with this was to provide a product that exceeded the expectations of what one might think of as typical workforce housing. Without these workers, Hilton Head wouldn’t be what we know it as today and we wanted to give them the best experience possible. The building was completely transformed over the next year and a half including a new addition to

How did you finance this deal?

Bank loan on reno & cash purchase.

How did you add value to the deal?

At the end of 2022, we saw an opportunity to turn an old 2-story bank building into workforce housing right on the south end of Hilton Head. Our goal with this was to provide a product that exceeded the expectations of what one might think of as typical workforce housing. Without these workers, Hilton Head wouldn’t be what we know it as today and we wanted to give them the best experience possible.

What was the outcome?

The building was completely transformed over the next year and a half including a new addition to make the now 10,000 sq/ft. state-of-the-art complex. It was a massive Success

Lessons learned? Challenges?

Big problems call for big solutions & commercial conversion is a great solution for workforce housing in resort areas.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

A great team is needed! The support of the Town of Hilton Head Island, Graves Construction, Parker Design Group, & The Sea Pines Resort are a few of the many instrumental people who made this project possible.