Commercial real estate brokers in Sullivan's Island, SC

There are expensive places to live in South Carolina.

Then there is Sullivan’s Island.

CashNetUSA recently ranked Sullivan’s Island as the most expensive neighborhood in South Carolina. The ranking is part of a list of most expensive neighborhoods in every U.S. state, based on Zillow data.

Home prices across South Carolina overall have skyrocketed the last two years. For instance, the median home sales price in the state was $311,032 in the first quarter of 2023, up 22% from the first quarter of 2021, according to South Carolina Realtors.

And yet, that is all chump change compared to home ownership in Sullivan’s Island. A home there costs an average of about $5.4 million, the ranking states.

The 2.5 mile-long barrier island and its charming little beach town is about 10 miles from downtown Charleston. The island has a strict preservation plan and so doesn’t have the usual accommodations that visitors would expect, like major hotels and motels. Instead, only vacation rental homes are available.

The island does feature a strong restaurant scene, with plenty of options for fine dining and family eating.

Sullivan’s Island also has a good bit of history. The island was settled in the late 17th Century by Capt. Florence O’Sullivan and was later the site of a major Revolutionary War battle.

To compile the rankings, CashNetUSA used real estate data from Zillow to group together neighborhoods of towns and cities in all 50 U.S. states. It then calculated the average price in each neighborhood by adding together the house prices in each area and dividing them by the number of properties.

Why Sullivan’s Island is pricey, it is still not among the top most expensive places to live in the U.S. Below is a list of the 10 most expensive neighborhoods in the U.S. and their average house prices, according to CashNetUSA.

To keep things more in perspective, here’s an interactive map that shows the latest median sales price for homes in each South Carolina county, using data from Redfin.

SULLIVAN’S ISLAND — Town Council can control most all aspects of tree-cutting in its beachfront maritime forest because it can’t be bound by decisions made by previous councils in the matter, a judge has ruled.

The basic principle of Circuit Judge Jennifer McCoy’s ruling is a town council cannot enter into an agreement that will bind a successive council into doing or not doing certain things.

The decision, filed Jan. 30 in state court in Charleston, comes after a former Sullivan’s Island council reached a settlement in 2020 that mandated more thinning of the maritime forest than the town had contemplated.

That settlement resolved a decadelong lawsuit — stemming back to 2010 — from a group of homeowners next to the forest who wanted to see more management of the land from the town.

The forest gradually grew on land that is accreting where the island meets the Atlantic Ocean. The effect has created a thicket between the large beach houses and the sandy beach, which blocked views of the ocean while also creating swampy and forested territory.

Any future councils would have been bound to that previous agreement.

The court decision changed that.

“As mayor, I’m very pleased that the judge agreed with our contention that that settlement agreement was not consistent with South Carolina law and that it should be voided,” said Mayor Patrick O’Neil.

Since the settlement was agreed upon, Sullivan’s Island residents elected a new council with a majority that was more favorably disposed to the maritime forest, O’Neil said.

“We’ve heard a lot from many residents — not all, but many residents — who fervently disagreed with that agreement,” O’Neil said. “That urged us to do something.”

The council brought forth a declaratory judgment that the prior settlement agreement was unenforceable and therefore void.

The court agreed with that position.

William Wilkins, a Greenville-based attorney with the firm Nexsen Pruett who represented the town, said he appreciated the prompt attention Judge McCoy gave to the matter.

“She correctly applied the relevant principles of law, including the law that a town council may not enter into agreements that will bind a successive town council under the facts of this case,” Wilkins said.

Development is prohibited on the land at the center of the complaint. The town can permit or do certain amounts of cutting on the maritime forest when deemed appropriate or beneficial.

Landowners can apply for permits to cut three species of bushes or trees in front of their property, between it and the beach.

Guidelines are in place for how low the trees and bushes may be trimmed.

Issues dividing residents in the matter included those who wanted a better view of the water or were concerned about the wild animals living in the forest, such as coyotes, and those who preferred allowing the natural state to continue.

SULLIVAN’S ISLAND — The home market continues to sizzle in this pricey seaside town, with real estate agents pointing to its community appeal, a longtime ban on short-term rentals and resilient, well-heeled cash buyers among the driving forces.

So far this year, three big-ticket residential transactions have closed on Sullivan’s Island, ranging from nearly $8 million to slightly more than $10 million.

Sullivan’s commands a premium partly because it offers limited inventory in a highly desirable location, according to agents familiar with the local market. Some also point to the lack of rentals.

“There is not a transient population out there,” said Lyles Geer, president and broker-in-charge of William Means Real Estate. “You don’t have an abundance of renters or people who don’t live out there. ... Buyers are paying for the exclusivity of living in a residential community.”

Michael Scarafile, president of Carolina One Real Estate, echoed his remarks.

“One reason is that Sullivan’s doesn’t allow short-term rentals,” he said. “Those are all residential sales.”

Scarafile pointed to the recent run of seven- and eight-figure purchases as an example of the age-old principle of supply and demand.

“There just aren’t that many houses on Sullivan’s, and the market for residential use on the islands continues to perform well,” he said. “The high-end market is holding up very well.”

Owen Tyler, managing broker of Cassina Real Estate Group, agreed prices on Sullivan’s are rising because of the dearth of inventory and continued interest among would-be buyers from outside the region or state.

“They aren’t building more of the island,” he said.

Tyler also pointed to a community-minded vibe on Sullivan’s as an attraction for buyers who can afford the lifestyle.

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“Sullivan’s Island has always been for a lot of people the epitome of where they want to live,” he said. “It has great beaches, it’s an island and it has a small-town atmosphere. Nothing feels out of place or unusual.”

But Tyler doesn’t buy the notion that the town’s 22-year-old rental policy of not allowing overnight stays of less than 28 days has an impact on home sales.

“Are people wanting to live there because of a lack of short-term rentals? Maybe, but I don’t ever hear that,” he said. “Most of the people who are buying recently are not full-time residents of Sullivan’s.”

To Tyler, the main factor driving up prices is an abundance of deep-pocketed buyers who are able to make quick and mostly cash offers for an extremely limited number of homes.

“We can’t find enough people to sell (homes), which is why you are seeing the price escalation,” he said.

The most recent transaction involved the five-bedroom oceanfront house with five bathrooms and two half baths at 3213 Middle St. It changed hands March 29 at the list price of $7.95 million, according to Charleston County land records.

The buyer is a limited liability company from Florence. The seller is a Charlotte firm that bought the property when it was a vacant lot for $2.5 million in 2020. The 4,160-square-foot house near Breach Inlet was completed the next year.

Ashley Haynes of East Islands Real Estate represented the seller, and Tommy Manous of Carolina One Real Estate represented the buyer.

The sale follows two other notable residential transactions on Sullivan’s.

A 4,350-square-foot oceanside house at 2411 Atlantic Ave. last month fetched $10.1 million, shy of the all-time record of $10.5 million a buyer paid for 1901 Thee St. in 2021.

Earlier this year, a 4,360-square-foot spread at 812 Conquest Ave. on the western end of Sullivan’s changed hands for $8.7 million.

The Charleston-area industrial real estate market proved resilient in the first quarter despite rising interest rates and a cooling economy, with tenants absorbing 2.2 million square feet, according to a new report.

All told, according to Colliers, 3.7 million square feet of new space came online in the first three months of the year. Vacancy rates ticked up as well, but they remained near historic lows at 3.74 percent despite all the new construction.

“Since the beginning of 2021, the market has absorbed an average of 1.6 million square feet per quarter,” the commercial real estate firm said in its analysis. “This was largely driven by warehousing to support the advanced manufacturing sector, particularly internal combustion and electric vehicle manufacturing, and expansion of third-party logistics activity.”

Over the coming months, those business sectors will continue to drive demand for additional real estate, according to the report. About 11.8 million square feet of industrial space is under construction in the three-county region.

The Port of Charleston is still the main driver, even though cargo levels have fallen in recent months as post-pandemic consumers spend more money on services and experiences than on imported goods. Inflation has also tamed what had been a frenetic spending spree last year on items like furniture and electronics.

A plan by ZEB Metals to build an aluminum recycling plant on 32 acres along U.S. Highway 52 in the Goose Creek area was the largest industrial announcement dollar-wise during the quarter, Colliers said. The $80 million project is expected to create 28 jobs.

Second to that project was a $49.9 million cold-storage warehouse that Charleston-based FlexCold plans to build along Patriot Boulevard in Dorchester County. The 151,600-square-foot building on roughly 51 acres is expected to create 59 jobs.

A separate report by Avison Young shows average annual base rents for Charleston-area industrial properties hit $8.89 per square foot in the first quarter and are expected to continue rising on the back of strong demand.

“As larger tenants relocate to the Charleston market, demand has increased for industrial space,” the firm’s local office said. “The projected average building size for deliveries in 2023 is 346,000 square feet. Based on construction activity, this number is expected to rise to 540,000 square feet in 2024.”

The Palmetto Commerce Park area in North Charleston and the Summerville region along Interstate 26 continue to be the hottest spots for industrial construction, with a combined 42.7 million square feet of space — nearly two-thirds of the market’s total.

Up a notch

An economic development trade publication reports South Carolina is the nation’s seventh-best state for attracting industrial investment.

The ranking is included in Site Selection’s annual Prosperity Cup list, which measures the effectiveness of each state’s economic development efforts.

The Palmetto State moved up one spot in the magazine’s 2023 rankings. Neighboring states Georgia and North Carolina placed first and second, respectively.

A focus on electric vehicles and the batteries that power them helped the S.C. Department of Commerce recruit 120 businesses and expansions representing investments topping $10.27 billion in 2022 — a record year for economic development in South Carolina and an 80 percent increase over the previous mark set in 2021.

The new deals promise to create 14,083 jobs over time, with most of the activity centered around plants in the Charleston region and the Upstate.

Bottled up

South Atlantic Canners is spending $28.7 million on a multiyear expansion at its Lee County site that will create 15 jobs over the next five years.

The company is managed by Coca-Cola Consolidated Inc., the largest independent Coca-Cola bottler in the United States with production of more than 300 beverage brands and distribution to 14 states and Washington, D.C.

South Atlantic Canners plans to renovate its existing Bishopville facility and add new, state-of-the-art equipment. The expansion is expected to be completed by the end of 2027.

SULLIVAN’S ISLAND, S.C. (WCBD) – The South Carolina Circuit Court has ruled to preserve the Sullivan’s Island Maritime Forest. This comes after the town’s previous council approved a settlement agreement that would allow development to take place where the forest currently sits.

The circuit court ruled in favor of the Town of Sullivan’s Island’s request to invalidate the settlement agreement that was agreed upon by the previous town council.

“I was thrilled,” Sullivan’s Island resident Cyndy Ewing said. “It’s a monumental ruling.”

Many Sullivan’s Island neighbors and elected officials are pleased with the ruling that will protect the island’s 200-acre maritime forest from development.

“The judge agreed that that agreement was not legal under state law,” Sullivan’s Island Mayor Patrick O’Neil said. “And one main issue there was that one sitting council for a municipality may not tie the hands of subsequent councils for a municipality.”

The ruling, which was handed down earlier this week, gives Sullivan’s Island Town Council complete authority over the forest.

“They can talk about how we can manage this land for the safety and enjoyment of all the residents,” Ewing said. “It’s thrilling.”

Ewing is thrilled because she says without the forest, the island would be nearly uninhabitable.

“It actually holds the land,” she said, “the plants out here, hold our land together. It also protects us from storm surge and hurricanes and flooding.”

In addition to keeping the island whole, and protecting residents from storms, O’Neil says the maritime forest is special for another reason.

“This is land which has been growing,” he said, “it’s been accreting. Whereas nearly every other barrier island along the East Coast is eroding. So, our island is getting bigger.”

Town residents say after years of dispute, they’re elated the court finally saw the forest for the trees.

“What we are looking forward to is being able to celebrate this incredible resource that we’ve been given instead of having to fight to protect it,” Ewing said.

Multiple venomous Portuguese man-of-wars recently washed up on the shores of Sullivan’s Island. Town officials, who warned beach-goers to be cautious, said the jellyfish-like animals were swept toward the Charleston area by recent wind circulation from warm water near the Gulf Stream.

“Although the colder water near the beach may kill the Man-of-War, it still has the capacity to sting and cause pain,” said Town Administrator Andy Benke.

The animal, which is closely related to the jellyfish, has long venomous tentacles that can inflict a painful sting. If stung, the suggested remedy is to rinse immediately with salt water to wash away any microscopic nematocysts. Studies show fresh water is less effective as a treatment.

In other headlines:

CofC to unveil portrait of McConnell on anniversary of secession. The College of Charleston will unveil a portrait of former President Glenn McConnell in a private ceremony to be held Dec. 20, the 162nd anniversary of South Carolina’s secession from the union. McConnell, a former state senator and lieutenant governor, has been a Civil War reenactor.

Pop-up skating rinks a popular trend in Charleston. Charlestonians are flocking to pop-up ice skating rinks across the city to enjoy the winter season. Places such as Credit One Stadium, Charleston Harbor Resort and Marina and one coming to Folly Beach Dec. 23 use synthetic ice to replicate the ice skating in Charleston, where it rarely freezes in December..

Charleston Co. tables vote for I-526 expansion. Charleston County Council voted to wait until January to make any final decisions regarding the expansion of I-526. County officials identified $75 million available from the transportation sales tax that could be used to advance the interstate’s expansion.

Most S.C. workers could see less in taxes deducted in 2023. The state’s top income tax rate was reduced from 7% to 6.5% by legislators in 2022, according to the South Carolina Department of Revenue. The amount of change will depend on a number of factors for each individual, but many state workers should expect to see taxes go down.

S.C.’s Dominion given OK to raise electric rates. Dominion Energy was given permission Dec. 15 to raise the electric rates of South Carolina residents to help offset a spike in natural gas and coal expenses this year.

To get dozens of South Carolina news stories every business day, contact the folks at SC Clips.