Retail investment sales also remain slow. The four small properties that changed hands during the second quarter for a combined total of $12.1 million brought the year-to-date total to $22.7 million for seven transactions. The year-to-date average selling price was high at $420 psf; the mean cap rate was relatively low at 5.5%. The 12-month rolling mean cap rate was 5.3%, down from 6.7% a year earlier. In the latest quarter’s largest deal, Charleston Pooh LLC paid Carolina DH IV LLC $5.42 million ($479 psf) in May for an 11,301-square-foot CVS drug store site in Charleston.
There is a “stark contrast in the value of urban and suburban product,” reports Lincoln Harris, “with retail units in Downtown Charleston typically selling for twice what suburban product is able to fetch, even compared to product in well-positioned Mount Pleasant.”