Investors Capitalize on Below-Market Acquisition Of Planet Fitness-Anchored Retail Center In Charleston, SC

EquityMultiple, a leading online real estate investment platform, has announced the launch of its latest offering, Montague Corners, a value-add retail investment opportunity in Charleston, South Carolina. The investment offering aims to raise $2.0 million in LP equity for the acquisition of a 96% occupied, 107,000-square-foot neighborhood shopping center.

The property boasts a strong tenant mix, with 61% of its gross rentable area leased to national credit tenants, including Planet Fitness Inc. PLNT, Dollar General Corp DG, Save-a-lot and Harbor Freight. The sponsor, a partnership between O’Connor Capital, Woodlock Capital and Sopris Capital, secured the property at a purchase price representing a 26% discount to comparable transactions, highlighting the potential for attractive returns.

Charleston, widely considered one of the fastest-growing markets in the U.S., has seen its metro population grow by approximately 280,000 people since 2000, with forecasts predicting an additional 73,000 residents over the next five years. The property’s location, adjacent to Greystar’s newest 4-star apartment community, is expected to contribute to an increase in foot traffic once the complex is completed in 2024.

The sponsor’s business plan focuses on enhancing the property’s already strong in-place cash flow by leasing and monetizing two out parcels that currently provide no income. Additionally, the sponsor aims to improve tenant credit and raise rents to market rates as leases expire, leveraging their national retail operational platform and local leasing experience.

With an average remaining lease term of 3.4 years and the anchor tenant, Planet Fitness, backed by a rare corporate guaranty, the property offers a low-risk execution business plan with strong in-place cash flow. The recent $4 million renovation completed by the seller minimizes the need for deferred maintenance, further reducing risk for investors.

“We are excited to offer our investors the opportunity to participate in the acquisition of Montague Corners,” said Soren Godbersen, CEO of EquityMultiple. “This investment aligns with our strategy of providing access to institutional-quality real estate investments with attractive risk-adjusted returns.”

The retail sector, particularly “essential retail” centers anchored around shopping centers, gyms and other daily needs, has demonstrated resilience and offers an attractive value proposition given their higher yields compared to other property types. This investment opportunity comes at a time when retail valuations are compelling, presenting investors with the potential for significant upside.

EquityMultiple’s Montague Corners investment is targeting a 3-year hold period, offering investors the potential for attractive cash-on-cash returns and a substantial upside upon the property’s sale. With a strong sponsor team, a desirable location and a low-risk business plan, this investment opportunity is expected to generate significant interest from accredited investors seeking exposure to value-add retail real estate.

Review details of the Montague Corners Value-Add Retail offering on EquityMultiple

Photo: Courtesy of EquityMultiple