Opportunistic Multifamily Development

Opportunity

In 2018, Buligo Capital Partners acquired the land for the development of Waterleaf at Battery Creek, a Class A residential community situated in Beaufort, SC. The fast-growing, high barrier-to-entry coastal community offers easy access to interstate highways, major employers, along with a variety of retail and entertainment options.

The development, which includes nine ‘garden-style’ residential buildings, one ‘carriage house’ residential building with garage parking, and one clubhouse building, features waterfront views, best-in-class amenities, and superior interior unit finishes.

Location

The property is within a short distance to local military and employment hubs, grocery-anchored shopping centers, public beaches, schools, and Beaufort’s historic downtown area. In addition, it is strategically located between the cities of Savannah, GA and Charleston, SC, a popular tourism corridor in the Hilton Head Island-Bluffton-Beaufort Metropolitan Statistical Area (MSA).

The location is accessible to nearby employment opportunities at Beaufort Memorial Hospital, University of SC–Beaufort, and Marine Corps Air Station. In addition, Savannah, GA is a 35-mile drive from the site and home to over 40,000 jobs, led by companies such as Gulfstream Aerospace, Georgia Pacific, Savannah-Hilton Head International Airport, and the Port of Savannah.

Result

Development began in early 2019 and the first set of units were delivered in Spring 2020. Lease-up and stabilization occurred within just one year, after which the decision was made to sell the asset. Sold after only 2½ years of purchase, the investment was realized several years earlier than originally projected and with a substantially higher IRR than anticipated.