The Business Narrative: Building Up the Housing Market

Sep 20, 2024 09:40AM ● By Donna Walker

New Report Finds South Carolina Leads in New Home Construction

Realtor.com this week released a new report, “New Construction Insights,” which found South Carolina, North Carolina, and Idaho lead the way when it comes to new home construction.

This report creates a ranking for states looking at volume, affordability, and future growth of the new construction inventory and found that the top 10 states are located South or West regions, with the Carolinas leading the way.

States were ranked using three criteria: the share of listings in each state that are new builds, the price per square foot premium on those new builds versus existing home listings (ranked lowest to highest), and the number of permits for new single-family homes per capita issued in each state.

South Carolina ranked fourth in new construction as a share of total listing, and second in both new construction premium per square foot and permits per capita.

“This will come as no surprise as the South and West have the fastest growing overall levels of inventory,” said Joel Berner, senior economist, Realtor.com.

“For prospective buyers interested in purchasing a newly built home, these 10 states have more newly built options that are more affordable, and fastest-growing. In other parts of the country, purchasing a newly built home may be more challenging until new construction activity picks up.”

South Carolina is one of five states in the ranking (the others are North Carolina, Idaho, Arizona, and Florida) that is seeing new construction priced lower than existing homes on a per square foot basis.

Noticeably absent from the top 10 is the No. 1 ranked state in terms of new construction premium, California, which is dragged down by weaker rankings along the metrics of new construction share and permitting.

EventWorks to Acquire Assets of Marquee Event Group

EventWorks, an event rental provider, and Quest Events, a drape and scenic elements provider, announced the acquisition of certain assets of Marquee Event Group Inc. and its affiliates. The acquisition will broaden the company’s presence in its existing markets of Dallas, Austin and San Antonio in Texas, and extend its presence to Kansas City.

EventWorks has locations in five states, including one in Charleston, South Carolina.

The acquisition also will enhance and deepen the company’s event rental inventory by adding unique tenting and other products to serve large-scale corporate and social events. In time, the company will integrate the acquisition’s products and services, expanding its selection to a broad clientele across multiple locations.

The combined inventory also will be tracked in one rental system, offering event planners and professionals a premium and seamless client experience.

“We are truly excited to expand our products and services, talented and dedicated employee base and physical warehouse locations for our client partners to be able to design elevated experiences, blending creativity and unrivaled selection. Our reach and capabilities will be unmatched in our industry,” said Lee Dunlap, founder and CEO of Quest Events and Mike Schmidt, CEO of EventWorks.

The combined organization will employ approximately 1,000 team members and manage over 1,000,000 square feet of warehouse space, supporting approximately 50,000 events annually.

Fund Management Company Shaw Circle Begins Operations in Charleston

Nearly 20 years after the $680 million acquisition of high-frequency securities trading pioneer Automated Trading Desk (ATD) by Citibank, a new fintech startup has commenced operations in Charleston.

Shaw Circle, a private institutional fund management company, was officially formed in 2021 by four recent graduates of the University of South Carolina’s prestigious Finance Scholars Program.

Shaw Circle’s office is located at Charleston Digital’s Flagship @ Charleston Tech Center. The formation of Shaw Circle and ATD have notable parallels in that they both grew out of SC universities – namely the College of Charleston and University of South Carolina (USC). While most graduates from the USC’s Finance Scholars Program move on to work at big Wall Street firms, Shaw Circle’s principals made the decision in 2021 to form their startup with their final tough year of education still to complete.

In terms of inspiration, mentorship and business support the students received during the education at USC, the principals credit a number of mentors, both inside and outside the university, especially Gregory R. Niehaus and Eric A. Powers at the Financial Scholars Program and SC Quantum Executive Director Joe Queenan.

“Since our proprietary financial model calls for advanced computing and big data to drive the success of our company, having access to computing resources at USC and SC Quantum were essential,” said Shaw Circle, CEO and Co-CIO, Jordan Fowler.

“The formation of Shaw Circle is once again proof positive that innovation is alive and well in South Carolina,” said Charleston Digital Director, Ernest Andrade. “We are well positioned to support the company along their journey.”

First Continental Closes on Loan for Auberon Woods Community in Conway

First Continental, a lending company that specializes in residential lot acquisition and development financing, has closed on a $9.4 million loan to finance phases 4-6 of Auberon Woods, a housing community in Conway, South Carolina.

This stage of development will transform 127.6 acres near Old State Highway 90 with 194 single-family homes and is slated for completion in summer 2025.

Auberon Woods, which will encompass a 758-acre tract and consist of a total of 1,100 houses and two large amenity areas upon completion in 2027, is being developed by Charleston-based premier land investment company and master-planned community developer, HIC Land and “America’s Builder,” D.R. Horton.

While a recent report by the Financial Times stated that home builders are experiencing the biggest credit crunch in more than a decade with banks cutting lending for residential construction by more than 10 percent, First Continental has closed over 40 loans in the last six months, surpassing $275 million.

Auberon Woods’ multi-phase development broke ground last year when First Continental financed a $10.4 million loan for Phases 1-3 of the project, which included 206 home developments. HIC Land anticipates the total projected loan needed for all phases to be over $50 million.

The development will offer buyers access to new housing options and high-quality amenities at an affordable price.

Auberon Woods marks the 14th project loan financed by First Continental for HIC Land since the two companies began collaborating six years ago, totaling over $100 million in loan transactions.

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