MYRTLE BEACH REDEVELOPMENT OPPORTUNITY - Offering Memorandum - 9619 Shore Drive Myrtle Beach, South Carolina 29572
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Offering Memorandum
MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
9619 Shore Drive • Myrtle Beach, South Carolina 29572
NON-ENDORSEMENT AND DISCLAIMER NOTICE
Confidentiality and Disclaimer
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and
should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified
information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due
diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the
future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or
asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any
tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be
reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these
matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to
verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
Non-Endorsement Notice
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or
name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,
service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
Myrtle Beach, SC
ACT ID ZAA0390682
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MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01
Property Overview
Regional Map
Local Map
Aerial Photo
FINANCIAL ANALYSIS 02
Tenant Summary
Operating Statement
Pricing Detail
MARKET OVERVIEW 03
Market Analysis
Demographic Analysis
3
MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
INVESTMENT
OVERVIEW
4
MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
OFFERINGSUMMARY
OFFERING SUMMARY
EXECUTIVE SUMMARY
OFFERING SUMMARY
Price $6,200,000
MAJOR EMPLOYERS
Down Payment 100% / $6,200,000
Loan Type All Cash
Lot Size (SF) 30,056 EMPLOYER # OF EMPLOYEES *
Land Price/SF $206.28 Grandstand Regional Med Ctr 1,000
Gross Leasable Area (SF) 11,830 Sands Resorts Holding LLC 750
Current Net Operating Income $173,650 Walmart 500
Lot Size (Acres) 0.69 acre(s) Myrtle Beach Hilton Resort 350
Price/Acre $8,985,507 Ocean Dunes Resort Hotel The 340
Development Type Redevelopment World Choice Investments LLC 250
Zoning RR, Residential Resort Bass Pro Shop 238
Buildable SF 100,000 Caravelle Properties 223
Density 60 Units Sands Ocean Club Resort 220
Maximum Height 120 Feet Barefoot Rsort Golf CLB II LLC 200
Number of Lots 2 Belk 200
Price/Lot $3,100,000 Marriott 187
Type of Ownership Fee Simple
EXPENSES DEMOGRAPHICS
CURRENT $/SF
General Repairs & Maintenance $1,690 $0.14 1-Miles 3-Miles 5-Miles
A/C Repairs $3,991 $0.34 2018 Estimate Pop 1,736 8,773 21,710
Electrical Repairs & Supplies $115 $0.01 2010 Census Pop 1,517 7,504 18,647
2018 Estimate HH 939 4,519 10,636
Landscaping $3,400 $0.29
2010 Census HH 815 3,812 9,002
Deck and Property Rehab $1,850 $0.16
Median HH Income $59,462 $54,921 $54,396
Trash Removal $1,646 $0.14 Per Capita Income $46,622 $41,520
$51,897
Insurance $20,090 $1.70 Average HH Income $95,887 $90,488 $84,620
Miscellaneous $620 $0.05
Real Estate Taxes $16,271 $1.38
* # of Employees based on 5-mile radius
TOTAL $49,674 $4.20
#
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MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
PROPERTY OVERVIEW
PROPERTY OVERVIEW
Marcus & Millichap is proud to present an excellent redevelopment opportunity site with an existing retail strip located in Myrtle Beach, South Carolina. This redevelopment site is situated
on two contiguous parcels containing 30,056 square feet (.69 acres) of land. This corner lot is zoned RR, Resort Residential, within the unincorporated Horry County District, and allows the
development of medium-to-high density residential structures and hotels. This zoning allows for a maximum of 60 units with approximately 100,000 buildable square feet and a maximum
height of 120 feet above grade or the base floor elevation (BFE), whichever is greater. The subject property sits on a rare topographic elevation allowing a developer to take advantage of
this opportunity to develop a residential/hotel tower and have mostly unobstructed panoramic views of the Atlantic Ocean, Dunes Golf & Beach Club, and Arcadian Shores Golf Club.
This rare Myrtle Beach covered land play is strategically located on the corner intersection of Shore Drive and Maison Drive. Located across the Atlantic Ocean, this property provides easy
access along the Atlantic coast to the Atlantic Beach, North Myrtle Beach, and Surfside Beach. Furthermore, this intersection leads directly to US-17, a major north-south thoroughfare).
9619 Shore Drive is 15 miles south of the North & South Carolina State border line. This property has strong demographics with a population of 22,471 within a three-mile radius and an
average household income of $100,900 within a one-mile radius. The Myrtle Beach market is experiencing a large influx population moving from the saturated Charlotte area. Statistics
show a population growth rate of 22 percent within the next five-years within a one-mile radius. The increasing population coupled with the strong demographics makes this Myrtle Beach
redevelopment site an excellent opportunity to capture future absorption.
9619 Shore Drive has been well maintained and provides an outdoor beach appeal. The property is currently fully occupied by a mix of tenants including a gift shop, liquor store, and
restaurant on short-term annual leases. 9619 Shore Drive presents the most unique opportunity to acquire a .69-acre in fill development with a fully stabilized retail strip generating
approximately $170,000 in-place net operating income during the planning phase. These components make this offering a rare income-producing/redeveloping opportunity directly across
the beach.
PROPERTY OVERVIEW
▪ Corner Lot With Great Exposure and Excellent Visibility
▪ Zoned RR, Residential Resort in the Unincorporated Horry County District
▪ Located Directly Across the Atlantic Ocean
▪ Rare Topographic Elevation Allowing for a Development with Unobstructed Views
of the Atlantic Ocean and Golf Courses
▪ Fully Occupied Retail Strip on Annual Leases
▪ Excellent Covered Land Play Generating Approximately $170,000 in Net
Operating Income
▪ High Demand for Residential Space in an Exploding Myrtle Beach Market
▪ Robust Demographics including a 5-Year Population Growth Rate Projection of
22% Within a One-Mile Radius
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MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
OFFERING SUMMARY
PROPERTY SUMMARY
THE OFFERING
Property Myrtle Beach Redevelopment Opportunity MARKET OVERVIEW
Price $6,200,000
Property Address 9619 Shore Drive, Myrtle Beach, SC 29572
Myrtle Beach, S.C., is not only a world
Assessors Parcel Number 39-4120-2080-3 , 39-4120-2080-2 recognized travel destination, but also a
Zoning RR - Resort Residential District premier location for business growth and
Ingress/Egress Shore Drive/Maison Drive development that’s becoming increasingly
Access Shore Drive/ Maison Drive recognized. This emerging hub for global
SITE DESCRIPTION
business is strategically located in the
northeastern corner of coastal South Carolina,
Lot Size (SF) 30,056
between the port cities of Charleston, S.C., and
Lot Size (Acres) .69
Wilmington, N.C., and halfway between New
Land Price/Acre $8,985,507 York and Miami, Fla. With nationally low tax
Land Price/SF $206.28 rates, competitive labor costs, affordable real
Development Type Redevelopment estate and overall cost of doing business,
Allowable Buildable SF 100,000 Myrtle Beach offers an invaluable community
Maximum Height 120 Feet above grade or the base floor elevation (BFE), whichever is greater for businesses. Area businesses also benefit
Density 60 units
from an abundance of recent graduates
entering the workforce from nearby Coastal
Number of Lots 2
Carolina University and Horry Georgetown
Type of Ownership Fee Simple
Technical College. Horry County is home to a
UTILITIES diverse mix of businesses and industries
Electricity Yes, Paid by Tenants (Separately Metered)
ranging from advanced manufacturing to
technology and corporate headquarters. Area
Waste Yes, Paid by Tenants
employers include Conbraco Industries, Inc.,
Roof & Structure Paid by Landlord Frontier Communications, PPG, Inc., Canfor
Southern Pine, Metglas, Precision Southeast,
Inc., BauschLinnemann, B3C Fuel Solutions.
7
MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
ZONING MAP
SUBJECT PROPERTY
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MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
ZONING
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MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
ZONING
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ZONING
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ZONING
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INVESTMENT OVERVIEW
13MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
INVESTMENT OVERVIEW
With Horry County projected to nearly double in population, here’s the plan for growth
Horry County could welcome nearly 300,000 residents in the next 20 years.
On Monday, Horry County Council unanimously passed the first reading of a plan to deal with the growth.
Once implemented, the plan will provide a roadmap for development over the next decade in
unincorporated Horry County.
“What took 100 years of population growth is going to happen in the next 20 years,” said Horry County
Planning Commission Chair Steven Neeves. “And we don’t get to stop it. … The best we can do is to
manage it and manage it smartly.”
Most people moving to the area live in unincorporated Horry County, Principle Planner Leigh Kane said.
“The stress is on the county,” Kane said.
The suburban are close to the Atlantic Ocean and Intracoastal Waterway with some exceptions. The more
obvious areas include Burgess, Forestbrook, Socastee and Carolina Forest. In addition, Longs and the
unincorporated outskirts of Conway also are considered suburban.
In these areas, housing subdivisions are the main type of development allowed with opportunity for
businesses to move in closer to where people live. The hope is to avoid urban sprawl, which leads to
congested roads.
“High density is going to be our friend, sprawl is going to be our enemy,” Neeves said.
Within the plan, it states that any building in these areas will be higher density single-family and multifamily living that are inclusive to healthy living and environmentally conscious
construction. Typically, it will be required that any new neighborhood build recreational green space and retention ponds.
To help get businesses closer to homes, there is also area set aside for neighborhood/community centers like the Town Center in Carolina Forest.
A key part for both is making walking and driving easier through infrastructure improvements that make the areas look cleaner. This includes walking paths, revamped roads and renovating
aging buildings to look more like a “downtown” storefront area even along commercial corridors like U.S. Highway 501.
One final key element for the more urban areas is using less space to build more by allowing business and residential to share buildings. The mixed-use sections are typically in the most urban
parts of the county.
It looks like a high-rise apartment complex with stores on the first floor, parking garages and apartments/condos on top.
The benefit of building vertically is that it can contain the development to the eastern part of the county, preserving the rural communities west of the Waccamaw River. It can also lead to
people walking, biking or taking a golf cart to the store instead of clogging up roads.
The hope is to make traveling Horry County easier and faster by giving people less of a reason to drive long distances. And by keeping populations contained to areas closer to the beach, Horry
County can help preserve its more rural areas.
14MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
INVESTMENT OVERVIEW
Visit Myrtle Beach, S.C. Announces Latest New Developments
MYRTLE BEACH, S.C., Jan. 29, 2019 /PRNewswire/ -- Myrtle Beach, South Carolina continues to rank as one of the fastest-growing family and vacation
destinations in the nation, attracting roughly 19 million visitors annually. Given the accessibility and multitude of attractions for families, the Myrtle Beach area
received several new accolades in 2018 including being ranked by Google as the "Third Most Searched Travel Destination in the World," one of the Travel
Channel's "Best East Coast Beaches" and a "Top 10 Beach Town with the Highest Quality of Life" by Coastal Living. The following is the latest information on
new tourism developments in the region, listed alphabetically by category.
THE Blvd Complex: Marriott Hotel at 21st Avenue North Myrtle Beach Ocean Enclave by Hilton
A new 55,000-square-foot complex along the Myrtle Beach Boardwalk at A new Marriott-branded resort hotel managed by local Brittain Strand Capital Group is
14th Avenue North called THEBlvd was completed in October 2018. The Resorts & Hotels is coming to central Myrtle Beach. The collaborating with Hilton Grand
new beach club brings several new restaurants, retail stores and a live development is happening in two phases. One resort tower is Vacations to build a new hotel
music venue. They include Tin Roof, a Nashville-based live music venue, currently under construction and then another proposed featuring 330 luxury oceanfront
and the national chains BurgerFi and a Starbucks. The Mexican restaurant tower will be built in the second phase with the addition of units reaching 27 stories high. Now
Bandito's, which had formally resided at that location, also moved into the public space at the end of 21st Avenue North in Myrtle Beach. under construction with a
new complex. The building is 70% leased but also plans to include a ground The public space would consist of a 60-foot vista to represent a projected completion date in the
floor retail store selling light groceries, beach essentials, fashionable maritime forest. The resort is also planned to have space for an summer of 2019, the hotel is
brands and sundries. New tenants are being sought to fill the remaining outdoor pool, lazy river and a rooftop bar and restaurant on located at 1600 North Ocean
space. For more information, visit https://theblvdmyrtle.com. the 26th floor. Developers also plan to add two mixed-use Boulevard in Myrtle Beach and will
areas that would house retail, restaurants and entertainment. be named Ocean Enclave by Hilton
Cultural Arts Center in Downtown Myrtle Beach: The second phase does not currently have a start date. Grand Vacations Club. All units will
The City of Myrtle Beach and Coastal Carolina University (CCU) have be between one to three-bedroom
entered into an agreement to purchase property that will be turned into a suites and include full kitchens,
new cultural arts center and theater in downtown Myrtle Beach. The private balconies and spacious
center would be located in what is now three properties in the downtown Myrtle Beach Mall Plans for The District
living and dining areas.
area of Myrtle Beach along Highway 501. The space would include a 250 to The Myrtle Beach Mall is planned to get a makeover with the
Visit https://www.hiltongrandvacat
300 seat theater, an art gallery, reception area, dressing rooms and proposed opening of $15 million in new retail and restaurant
ions.com/south-carolina/ocean-
rehearsal space. It would be used for performances by CCU students as space. Named "The District," current plans include multiple
enclave-hgvc for information.
well as allow the city to host up to 30 productions per year. A construction waterfront restaurants and a boardwalk with a lighthouse and
date has not yet been set. gazebo along the Intracoastal Waterway. Renderings also
include a promenade and garden in the middle. A construction
date has not yet been set. Additional details can be found
Gateway Galleria Mixed-Use Complex Coming to Ocean Boulevard at https://www.mymallmyrtlebeach.com/
Plans have been approved for a mixed-use complex on Seventh Avenue
North and Ocean Blvd. in downtown Myrtle Beach called the Gateway
Galleria. The $20 million project will include a four-story 75,000-square-
foot complex that will house over 40 visitor condos and a bottom floor
filled with restaurants, fitness and retail. A completion date has yet to be
determined.
15PROPERTY
MYRTLE BEACH
NAMEREDEVELOPMENT OPPORTUNITY
PRICING LOCATION
PRICING AND
AND TENANT SUMMARY
OVERVIEW
VALUATION
VALUATION MATRIX
MATRIX
9619 Shore Drive, Myrtle Beach, SC 29572
CLOSE PROXIMITY TO:
# 16MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
REGIONAL MAP
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LOCAL MAP
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AERIAL PHOTO
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AERIAL PHOTO
Atlantic Ocean
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AERIAL PHOTO
Maison Sur-Mer
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AERIAL PHOTO
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AERIAL PHOTO
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PROPERTY PHOTOS
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PROPERTY PHOTOS
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PROPERTY PHOTOS
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PROPERTY PHOTOS
27MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
FINANCIAL
ANALYSIS
28MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
FINANCIAL ANALYSIS
TENANT SUMMARY
% Annual
Square Bldg Lease Dates Rent per Total Rent Total Rent Lease
Tenant Name Feet Share Sq. Ft. Per Month Per Year Type
Suite Comm. Exp.
Gift Shop 1 1,050 8.9% 2/1/19 1/31/20 $17.14 $1,500 $18,000 Gross
ABC Liquors 2 570 4.8% 2/1/19 1/31/20 $25.64 $1,218 $14,616 Gross
Ice Cream Shop 3 420 3.6% 2/1/19 1/31/20 $24.21 $848 $10,170 Gross
Flip Flops Restaurant 4 3,000 25.4% 2/1/19 5/01/20 $18.00 $4,500 $54,000 Gross
General Store 5 2,500 21.1% 2/1/19 1/31/20 $26.78 $5,580 $66,960 Gross
Nucci's Pizza 6 1,350 11.4% 2/1/19 1/31/20 $14.61 $1,644 $19,728 Gross
Smoke Shop 7 960 8.1% 2/1/19 1/31/20 $10.00 $800 $9,600 Gross
Sunglass Hut / Yossi's Beachwear 8 1,980 16.7% 2/1/19 1/31/20 $15.28 $2,521 $30,250 Gross
Total 11,830 $18.88 $18,610 $223,324
Occupied GLA:
Occupied Tenants: 8 Unoccupied Tenants: 0 Unoccupied GLA: 0.00%
100.00%
NOTES
- Rent are based on a weighted average calculation since monthly rents vary due to seasonality
- Tenants have individual electric meters and pay their own trash
- All tenants except Flip Flop Restaurant are on annual leases
- Flip Flop Restaurant can vacate with 30 days notice, unless it is high season
- Flip Flop Restaurant has a Right of First Refusal to continue operating in the new establishment
29MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
FINANCIAL ANALYSIS
OPERATING STATEMENT
Income Current Per SF
Scheduled Base Rental Income 223,324 18.88
Effective Gross Revenue $223,324 $18.88
Operating Expenses Current Per SF
Common Area Maintenance (CAM)
General Repairs & Maintenance 1,690 0.14
A/C Repairs 3,991 0.34
Electrical Repairs & Supplies 115 0.01
Landscaping 3,400 0.29
Deck & Property Rehab 1,850 0.16
Trash Removal 1,646 0.14
Miscellaneous 620 0.05
Insurance 20,090 1.70
Real Estate Taxes 16,270 1.38
Total Expenses $49,674 $4.20
Expenses as % of EGR 22.2%
Net Operating Income $173,650 $14.68
NOTES
- Rent are based on a weighted average calculation since monthly rents vary due to seasonality
- Tenants have individual electric meters and pay their own trash
- All tenants except Flip Flop Restaurant are on annual leases
- Flip Flop Restaurant can vacate with 30 days notice, unless it is high season
- Flip Flop Restaurant has a Right of First Refusal to continue operating in the new establishment
- Real Estate taxes are based on 2018 tax Bill
30MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
FINANCIAL ANALYSIS
PRICING DETAIL
THE OFFERING Operating Data
Land Price $6,200,000.00
Lot Size (SF) 30,056
Lot Size (Acres) .69 Income Current
Land Price/SF $206.28 Scheduled Base Rental Income $223,324
Land Price/Acre $8,985,507 Potential Gross Revenue $223,324
Gross Leasable Area (GLA) 11,830 SF Effective Gross Revenue $223,324
Year Built 1982
Less: Operating Expenses 22.2% ($49,674)
Current Occupancy 100%
Net Operating Income $173,650
Number of Lots 2
Cash Flow $173,650
Development Type Redevelopment
Type of Ownership Fee Simple Total Return 2.80% $173,650
Zoning RR
Floor Area Ratio (FAR) n/a Operating Expenses Current
Height 120 Feet CAM $13,314
Insurance $20,090
SITE DESCRIPTION Real Estate Taxes $16,270
Assessor’s Parcel Number 39-4120-2080-3 , 39-4120-2080-2
Total Expenses $49,674
Zoning RR
Expenses/SF $4.20
Frontage Shore Drive & Maison Drive
NOTES
- Rent are based on a weighted average calculation since monthly rents vary due to seasonality
- Tenants have individual electric meters and pay their own trash
- All tenants except Flip Flop Restaurant are on annual leases
- Flip Flop Restaurant can vacate with 30 days notice, unless it is high season
- Flip Flop Restaurant has a Right of First Refusal to continue operating in the new establishment
- Real Estate taxes are based on 2018 tax Bill
31MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
ACQUISITION FINANCING
MARCUS & MILLICHAP CAPITAL CORPORATION WHY MMCC?
CAPABILITIES Optimum financing solutions
to enhance value
MMCC—our fully integrated, dedicated financing arm—is committed to
providing superior capital market expertise, precisely managed execution, and
unparalleled access to capital sources providing the most competitive rates and Our ability to enhance
terms. buyer pool by expanding
finance options
We leverage our prominent capital market relationships with commercial banks,
life insurance companies, CMBS, private and public debt/equity funds, Fannie
Mae, Freddie Mac and HUD to provide our clients with the greatest range of Our ability to enhance
financing options. seller control
• Through buyer
Our dedicated, knowledgeable experts understand the challenges of financing
qualification support
and work tirelessly to resolve all potential issues to the benefit of our clients.
• Our ability to manage buyers
finance expectations
• Ability to monitor and
manage buyer/lender
progress, insuring timely,
predictable closings
• By relying on a world class
Closed 1,678 National platform 6.24 billion Access to
set of debt/equity sources
debt and equity operating billion total more capital
financings within the firm’s national sources than and presenting a tightly
in 2018 brokerage volume in 2018 any other firm underwritten credit file
offices in the industry
32MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
MARKET
OVERVIEW
33PROPERTY
MYRTLE BEACH
NAMEREDEVELOPMENT OPPORTUNITY
MARKET OVERVIEW
MARKETING TEAM
EMPLOYMENT
Employment in Myrtle Beach area feeder states directly impacts the wherewithal for visitors to travel to our destination. Unemployment rates remain at
record lows while there is a tight labor market that will lead to wage growth.
• The National Unemployment Rate is at 3.7% as of September 2018, a 50-year low. (Bureau of Labor Statistics)
• As of August 2018, the unemployment rates for key feeder states were all at or below the 3.9% national average, including North Carolina, South
Carolina, Virginia, Georgia, and Tennessee. Other key feeder states were slightly above, including Ohio, Pennsylvania, Maryland and New York. Only West
Virginia was significantly above the national average unemployment rate. (Bureau of Labor Statistics)
• As of August 2018, 7.14 million job openings existed nationally, a record level. This was well in excess of the 6.23 million classified as unemployed.
(Labor Department)
• Locally, the unemployment rate for Horry County in June, July, and August of 2018 was 4.8%, 4.9%, and 5.0%, respectively. The lowest point for these
three months since 2000. (Chmura Economics and Analytics)
MYRTLE BEACH DEMAND
The Myrtle Beach area has experienced several years of record tourism growth and recent research indicates a strong interest to visit the destination in
the next 12 months. However, the impact of weather-related events to core visitor markets, including North Carolina, South Carolina, Virginia and
Georgia, could impact visitors’ propensity to travel. Also, the Myrtle Beach area has been impacted by weather-related events during the fall for the past
4 years, which could also impact seasonal visitation demand in the future.
• Nearly half of all respondents (47%) are interested in visiting Myrtle Beach for vacation during the next 12 months, according to findings reported in
the September 2018 Myrtle Beach Research Wave Tracking Study conducted by MMGY Global. The 5-month average is 50.4%.
- 59% of visitors are interested in visiting again (5-month average – 63%)
- 35% of non-visitors are interested in visiting (5-month average – 37%)
- Overall, 35% of those sampled are “likely” to visit Myrtle Beach in future and 56% of those who have previously visited are “likely” to visit again.
• There is cause for concern regarding “residual effect” of Hurricane Florence and Hurricane Michael on our top feeder states, including North Carolina,
South Carolina, Virginia, and Georgia. North Carolina sustained tremendous damage and is our top feeder state for visitors.
• In 2018, prior to Florence, YTD occupancy was up year-over-year, in spite of an unusually cold start to the year.
• For the last four years, Myrtle Beach area tourism has been negatively impacted by weather-related events during the fall season, including flooding in
2015, Hurricane Mathew in 2016, Hurricane Irma and Maria in 2017, and Hurricane Florence and Michael in 2018.
34PROPERTY
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NAMEREDEVELOPMENT OPPORTUNITY
MARKET OVERVIEW
MARKETING TEAM
Myrtle Beach Tracker Report September 2018
35PROPERTY
MYRTLE BEACH
NAMEREDEVELOPMENT OPPORTUNITY
MARKET OVERVIEW
MARKETING TEAM
LODGING INVENTORY
The Myrtle Beach lodging inventory continues to experience consistent growth, especially in vacation rental properties. While this is a good
indicator for tourism growth and visitor demand, it also means increased competition among lodging properties.
• A new lodging inventory study was completed in the spring of 2018. It estimated that 77,218 lodging units equating to 156,978-bedroom
equivalents existed in Horry County.
• The inventory study estimated the Hotel component of the inventory equated to 28,034 units or 36,583-bedroom equivalents.
CONSUMER MARKETING
The Myrtle Beach Area Chamber/CVB’s focus is to market the destination with an emphasis on driving demand for the destination,
attracting new visitors, expanding geographic markets and building shoulder seasons. Recent studies demonstrate a strong advertising recall
and interest in visiting the destination. However, upcoming budget cuts could have a negative impact on demand generation, advertising
recall, and share of voice in the future.
• Referring to the aforementioned Myrtle Beach Research Wave Tracking Study conducted by MMGY Global, nearly half of all respondents
recall advertising for Myrtle Beach during the past 6 months (47%), unchanged since the survey’s inception.
• Myrtle Beach, has the top advertising recall for its comp set at 47% with the Florida Keys/Key West destination coming in second at 35%.
• Significantly more Carolina residents (65%) than those from any other region – Northeast (46%), South (42%), Midwest (41%), Mid -
Atlantic (39%) — recall seeing or hearing advertising for Myrtle Beach.
• The impact of Hurricane Florence will reduce TDF and Accommodations Taxes received by the Myrtle Beach Area Chamber of Commerce
in Quarter 1 of 2019 and thus associated marketing and promotional budgets.
• Up to $1.5 million in TDF funds will be shifted from marketing to pubic safety beginning in 2019.
36PROPERTY
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NAMEREDEVELOPMENT OPPORTUNITY
MARKET OVERVIEW
MARKETING TEAM
37PROPERTY
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NAMEREDEVELOPMENT OPPORTUNITY
DEMOGRAPHICS
MARKETING TEAM
Created on August 2019
Source: © 2018 Experian
38PROPERTY
MYRTLE BEACH
NAMEREDEVELOPMENT OPPORTUNITY
DEMOGRAPHICS
MARKETING TEAM
Created on August 2019
Source: © 2018 Experian
39PROPERTY
MYRTLE BEACH
NAMEREDEVELOPMENT OPPORTUNITY
DEMOGRAPHICS
MARKETING TEAM
Created on August 2019
Source: © 2018 Experian
40PROPERTY
MYRTLE BEACH
NAMEREDEVELOPMENT OPPORTUNITY
DEMOGRAPHICS
MARKETING TEAM
Created on August 2019
POPULATION 1 Miles 3 Miles 5 Miles
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
▪ 2023 Projection
Total Population 1,870 9,549 24,097
▪ 2018 Estimate ▪ 2018 Estimate
Total Population 1,736 8,773 21,710
▪ 2010 Census
$250,000 or More 6.11% 5.31% 4.24%
Total Population 1,517 7,504 18,647
$200,000 - $249,999 4.27% 3.28% 2.53%
▪ 2000 Census
$150,000 - $199,999 3.42% 3.63% 4.01%
Total Population 1,487 6,473 15,064
$125,000 - $149,999 5.28% 5.33% 5.08%
▪ Daytime Population $100,000 - $124,999 6.46% 6.48% 6.89%
2018 Estimate 5,132 17,324 34,544 $75,000 - $99,999 12.17% 10.24% 10.77%
$50,000 - $74,999 21.79% 20.80% 20.90%
HOUSEHOLDS 1 Miles 3 Miles 5 Miles
$35,000 - $49,999 10.15% 12.92% 14.04%
▪ 2023 Projection
$25,000 - $34,999 6.30% 11.31% 11.43%
Total Households 1,011 4,964 11,830
$15,000 - $24,999 11.38% 11.08% 10.60%
▪ 2018 Estimate Under $15,000 12.67% 9.64% 9.50%
Total Households 939 4,519 10,636
Average Household Income $95,887 $90,488 $84,620
Average (Mean) Household Size 1.87 2.00 2.06
Median Household Income $59,462 $54,921 $54,396
▪ 2010 Census
Per Capita Income $51,897 $46,622 $41,520
Total Households 815 3,812 9,002
▪ 2000 Census
Total Households 813 3,323 7,152
Source: © 2018 Experian
41PROPERTY
MYRTLE BEACH
NAMEREDEVELOPMENT OPPORTUNITY
DEMOGRAPHICS
MARKETING TEAM
Created on August 2019
POPULATION PROFILE 1 Miles 3 Miles 5 Miles POPULATION PROFILE 1 Miles 3 Miles 5 Miles
▪ Population by Age ▪ Population 25+ by Education Level
0 to 4 Years 2.09% 3.39% 4.17% 2018 Estimate Population Age 25+ 1,507 7,276 17,372
5 to 14 Years 5.73% 7.06% 8.13%
Elementary (0-8) 0.95% 1.13% 1.35%
15 to 17 Years 2.04% 2.15% 2.50%
18 to 19 Years 0.91% 1.16% 1.35% Some High School (9-11) 1.72% 3.25% 4.01%
20 to 24 Years 2.38% 3.30% 3.84%
High School Graduate (12) 24.29% 23.83% 24.50%
25 to 29 Years 3.56% 5.51% 6.09%
30 to 34 Years 2.53% 4.93% 5.37%
Some College (13-15) 17.60% 24.82% 24.05%
35 to 39 Years 2.55% 4.80% 5.25%
40 to 49 Years 8.99% 10.72% 11.24% Associate Degree Only 12.05% 8.09% 8.42%
50 to 59 Years 12.98% 14.40% 14.50%
Bachelors Degree Only 28.34% 26.55% 25.19%
60 to 64 Years 11.83% 9.95% 9.13%
65 to 69 Years 16.97% 12.69% 10.57%
Graduate Degree 13.42% 11.42% 11.61%
70 to 74 Years 11.16% 8.37% 7.01%
75 to 79 Years 7.92% 5.42% 4.51%
80 to 84 Years 5.45% 3.50% 3.13%
Age 85+ 2.92% 2.65% 3.20%
Median Age 63.04 55.30 51.61
Source: © 2018 Experian
42PROPERTY
MYRTLE BEACH
NAMEREDEVELOPMENT OPPORTUNITY
DEMOGRAPHICS
MARKETING TEAM
Population Race and Ethnicity
In 2018, the population in your selected geography is 1,736. The The current year racial makeup of your selected area is as follows:
population has changed by 16.75% since 2000. It is estimated that 96.27% White, 0.82% Black, 0.17% Native American and 1.03%
the population in your area will be 1,870.00 five years from now, Asian/Pacific Islander. Compare these to US averages which are:
which represents a change of 7.72% from the current year. The 70.20% White, 12.89% Black, 0.19% Native American and 5.59%
current population is 46.67% male and 53.33% female. The median Asian/Pacific Islander. People of Hispanic origin are counted
age of the population in your area is 63.04, compare this to the US independently of race.
average which is 37.95. The population density in your area is 552.39
people per square mile. People of Hispanic origin make up 1.35% of the current year
population in your selected area. Compare this to the US average of
18.01%.
Households Housing
There are currently 939 households in your selected geography. The The median housing value in your area was $262,953 in 2018,
number of households has changed by 15.50% since 2000. It is compare this to the US average of $201,842. In 2000, there were 608
estimated that the number of households in your area will be 1,011 owner occupied housing units in your area and there were 205 renter
five years from now, which represents a change of 7.67% from the occupied housing units in your area. The median rent at the time was
current year. The average household size in your area is 1.87 persons. $809.
Income Employment
In 2018, the median household income for your selected geography is In 2018, there are 2,431 employees in your selected area, this is also
$59,462, compare this to the US average which is currently $58,754. known as the daytime population. The 2000 Census revealed that
The median household income for your area has changed by 13.65% 82.49% of employees are employed in white-collar occupations in
since 2000. It is estimated that the median household income in your this geography, and 16.98% are employed in blue-collar occupations.
area will be $66,168 five years from now, which represents a change In 2018, unemployment in this area is 4.18%. In 2000, the average
of 11.28% from the current year. time traveled to work was 16.00 minutes.
The current year per capita income in your area is $51,897, compare
this to the US average, which is $32,356. The current year average
household income in your area is $95,887, compare this to the US
average which is $84,609.
Source: © 2018 Experian
43PROPERTY
MYRTLE BEACH
NAMEREDEVELOPMENT OPPORTUNITY
PRICING
PRICING AND
AND MARKET
LOCATION
TENANT OVERVIEW
SUMMARY
VALUATION
MARKETING
VALUATION MATRIX
PLAN
MATRIX
TRAFFIC COUNT
YEAR COUNT
2019 55,300
2019 11,900
2019 3,200
Source: © 2018 Experian
44
#MYRTLE BEACH REDEVELOPMENT OPPORTUNITY
8 DEMOGRAPHICS
45PRESENTED BY
Alex D. Zylberglait Benjamin Yelm
Senior Managing Director Investments Broker Of Record
Senior Director - National Office and Industrial Charleston Office
Properties Group Tel: (843)-952-2222
Miami Office
alex.zylberglait@marcusmillichap.com
Tel: (786) 522-7000
Fax: (305) 675-8581
alex.zylberglait@marcusmillichap.com
License: FL BK3015211
www.MarcusMillichap.com
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