Cantor Fitzgerald and Silverstein Properties Announce Joint Venture with Turnbull Development, LLC for Opportunity Zone Development in Summerville, SC

Rhea-AI Summary

Cantor Fitzgerald and Silverstein Properties have partnered with Turnbull Development for a new mixed-use development in Summerville, SC. The project, located in a qualified opportunity zone, includes 365 multifamily units and a 40,000-square-foot medical office building. The venture secured $54 million in construction financing from SouthState Bank. Construction is set to begin in July 2024, with the development offering amenities like a grocery store, retail spaces, a micro-hospital, a pickleball court, and a dog park. The project aims to foster a community-oriented environment, providing convenient access to jobs, public services, and recreational activities, while supporting the region's growth and demand for walkable communities.

Positive

• Secured $54 million in construction financing from SouthState Bank, ensuring project funding.
• Project includes 365 multifamily units and a 40,000-square-foot medical office building, enhancing local infrastructure.
• Located in a qualified opportunity zone, providing potential tax benefits.
• Construction to commence in July 2024, indicating timely project execution.
• On-site amenities such as a grocery store, retail spaces, a micro-hospital, and recreational facilities will likely attract residents.
• Proximity to Summerville's historic downtown area and regional job growth makes the location desirable.

Negative

• Potential market risks associated with real estate development in opportunity zones.

NEW YORK, July 1, 2024 /PRNewswire/ -- Affiliates of Cantor Fitzgerald, L.P., ("Cantor Fitzgerald"), a leading global financial services firm and real assets investment company, and Silverstein Properties ("Silverstein"), a leading global full-service real estate development, investment, and management firm, announced that they have entered into a joint venture with Turnbull Development, LLC, a Charleston-based development firm. The venture intends to develop a mixed-use project encompassing 365 garden-style multifamily units across three buildings, and a 40,000-square-foot medical office building in a qualified opportunity zone in Summerville, SC.

The venture simultaneously closed on $54 million in construction financing from SouthState Bank, to develop the project. Located at the corner of Berlin Myers Parkway and Highway 78 and strategically positioned within walking distance of Summerville's historic downtown area, the investment is part of a 57-acre mixed-use, master-planned development known as Sawmill. This highly anticipated project will have immediate and long-lasting impacts on Summerville and provide a connected, community-oriented environment where people can live, convene, and enjoy. The development will help the local Summerville government better respond to the growing demand for walkable, flourishing communities with convenient transit linkages, proximity to jobs, and access to nearby public services and destinations.

"Sawmill will be a vibrant, region-transforming community," said Milton Thomas, President of Turnbull Development. "We have spent the last four years developing the master plan, moving through entitlements, and working with the town of Summerville to ensure this will ultimately be one of the region's premier mixed-use developments."

"SouthState is committed to helping our communities thrive, and the Sawmill development will certainly contribute to Summerville's continued growth," said Thomas Anderson, SouthState Bank Coastal Division President. "As a leading regional bank in the Southeast, we are delighted to provide the capital needed to bring this important project to fruition."

Sawmill will be anchored by a two-story, Roper St. Francis micro-hospital and outpatient surgery center and will include a neighborhood grocery store and retail outparcels that will serve as convenience and service amenities for residents and employees. The multifamily component will have direct access to Sawmill Branch Canal and Greenway Trail and offers on-site outdoor amenities such as a pickleball court, a dog park, and a pool and clubhouse. Construction of the multifamily portion is expected to commence in July 2024.

"Summerville is a desirable residential destination near Charleston that benefits from the region's job and population growth," said Alex Cosio, Vice President, Silverstein Properties. "With preconstruction completed and financing in place, this development is positioned to further invigorate an already bustling community."

"The proximity to Historic Downtown Summerville places the project in an enviable location with essential amenities nearby. Residents have easy access to retail, culture, recreation, and dining," said Chris Milner, CIO, Real Assets at Cantor Fitzgerald Asset Management. "Our partnership with Turnbull Development on this project and the location promise to have a positive impact on the community."

Cantor and Silverstein launched an opportunity zone business in early 2019 to invest in, develop, redevelop, and manage a diversified portfolio of institutional quality commercial real estate assets with an emphasis on multifamily properties located in qualified opportunity zones in the United States. Their opportunity zone development portfolio includes eleven projects in various stages of development exceeding $2.2 billion in total estimated project costs, an average of $203 million per project.

About Cantor Fitzgerald, L.P.
Cantor Fitzgerald, with over 12,500 employees, is a leading global financial services group at the forefront of financial and technological innovation and has been a proven and resilient leader since 1945. Cantor Fitzgerald & Co. is a preeminent investment bank serving more than 5,000 institutional clients around the world, recognized for its strengths in fixed income and equity capital markets, investment banking, SPAC underwriting and PIPE placements, prime brokerage, commercial real estate, and infrastructure, and for its global distribution platform. Cantor Fitzgerald & Co. is one of the 24 primary dealers authorized to transact business with the Federal Reserve Bank of New York. Cantor Fitzgerald is a leading SPAC sponsor, having completed multiple initial public offerings and announced multiple business combinations through its CF Acquisition platform. For more information, visit: www.cantor.com.

About Cantor Fitzgerald Asset Management
Cantor Fitzgerald Asset Management's investment platform consists of $13 billion of assets under management across mutual funds, interval funds, exchange-traded funds, separately managed accounts, unified managed accounts, non-traded REITs, opportunity zone funds, 1031 and 721 exchange vehicles, and other private investment vehicles managed on behalf of high net worth and institutional investors. The experience and knowledge of its senior leadership and portfolio management teams combined with the financial services prowess of industry leader, Cantor Fitzgerald, enable the delivery of a platform of solutions across a comprehensive range of capabilities. For more information, visit: www.cantorassetmanagement.com.

About Silverstein Properties
Silverstein Properties is a privately held, full-service real estate development, investment, and management firm based in New York founded by Larry Silverstein. Silverstein Properties has developed, owned, and managed more than 40 million square feet of commercial, residential, retail, and hotel space. Recent projects include 7 World Trade Center, the first LEED-certified office tower in New York City (2006), 4 World Trade Center (2013), the Four Seasons Downtown (2016), One West End (2017) and 3 World Trade Center (2018). The company has been recognized as one of the "Best Places to Work in New York City" by Crain's New York Business. For more information, visit: www.silversteinproperties.com.

About Turnbull Development
Turnbull Development, LLC is a full-service commercial real estate development company with a long and varied history of developing multifaceted projects in the Charleston, SC region. With decades of experience in real estate development and construction, Turnbull has established itself as a trusted partner in transforming ideas into realities that drive economic growth and elevate communities. The company's diverse portfolio showcases its expertise in creating innovative spaces that blend functionality, aesthetics, and sustainability across product types including industrial, office, retail, and mixed-use developments. In conjunction with Turnbull, marketing of the project will be handled by Lee & Associates Charleston, a local commercial real estate brokerage firm based in Downtown Charleston, SC.

About SouthState Bank
SouthState Corporation (NYSE: SSB) is a financial services company headquartered in Winter Haven, Florida. SouthState Bank, N.A., the company's nationally chartered bank subsidiary, provides consumer, commercial, mortgage and wealth management solutions to more than one million customers throughout Florida, Alabama, Georgia, the Carolinas, and Virginia. The bank also serves clients coast to coast through its correspondent banking division. Additional information is available at SouthStateBank.com.

 

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SOURCE Cantor Fitzgerald, L.P.

FAQ

What is the new joint venture between Cantor Fitzgerald, Silverstein Properties, and Turnbull Development?

Cantor Fitzgerald, Silverstein Properties, and Turnbull Development have formed a joint venture to develop a mixed-use project in Summerville, SC, including 365 multifamily units and a 40,000-square-foot medical office building.

When will construction begin for the new development in Summerville, SC?

Construction for the new mixed-use development in Summerville, SC, is expected to commence in July 2024.

How much financing was secured for the new Summerville development?

The joint venture secured $54 million in construction financing from SouthState Bank.

What amenities will the new mixed-use development in Summerville, SC, offer?

The development will offer amenities like a grocery store, retail spaces, a micro-hospital, a pickleball court, a dog park, and a pool and clubhouse.

Why is the location of the new Summerville development considered advantageous?

The development's location near Summerville's historic downtown provides access to jobs, public services, and recreational activities, making it desirable for residents.