In order to convert a 437-unit student housing property near Coastal Carolina University into a 149-unit multifamily property, Eastman Companies, a New Jersey-based developer, secured a $16 million loan. This redevelopment will be managed by Eastman Residential, the multifamily arm of Eastman Companies.
According to Coastal Carolina University’s director of communication, Jerry Rashid, the property is not affiliated with the university.
Knighthead Funding, an affiliate of Knighthead Capital Management, originated the loan. Knighthead Funding Vice President Brian Sullivan was responsible for its origination.
In a statement, Sullivan said, “We will help the sponsor realize their vision for this property, which will help meet the growing demand for quality multifamily properties.”
A principal at Eastman Residential, Zach Schofel, said the property had operated as off-campus, non-student housing that targeted students when his firm acquired the property.
The apartments will be converted into 144 three-bedroom apartments and five studio apartments that will match market rents in similar metropolitan areas, which were previously marketed to students.
It is Schofeld’s fourth conversion of student housing. “We identify distressed and underutilized multifamily communities in strong conventional markets with top-rated schools and diverse, robust employment.”
With a light interior renovation program (granite countertops, modern paint schemes, luxury vinyl wood flooring, a modernized lighting package, and new cabinets with stainless steel hardware), Eastman will provide units with amenities that will align with market rents as a cost alternative to new construction.
Located at 110 Chanticleer Village Drive, situates next to the Myrtle Beach National Golf Club in Carolina Forest, this area has been attractive to recent graduates, young professionals and families due to its proximity to the shoreline, golf courses and restaurants. As a major tourist destination with attractions such as the Skywheel, Hollywood Wax Museum, Myrtle Beach State Park and Broadway at the Beach shopping mall, Myrtle Beach holds something for everyone.
Between 2010 and 2018, Myrtle Beach experienced a 27.7 percent increase in population, making it the second-fastest-growing metropolitan area in the U.S.
Market occupancy in Myrtle Beach was 94.6 percent in the first quarter of 2023, according to data firm Axiometrics.
With 514 faculty members and just over 10,000 students, Coastal Carolina University was founded as a public university in 1954.
He reiterated that Coastal Carolina University was not involved in the deal and that no student housing units were lost.
Coastal Carolina University doesn’t have a contract with it. It was operating as an off-campus student housing property for the university.