$15-million offer accepted for Port of Port Royal property

The S.C. State Ports Authority accepted an offer Wednesday to sell the Port of Port Royal property to Palmetto Alliance Property Group for $15.4 million, again opening the door to end a years-long process.

The property now has until the end of the year to sell before it is put up for auction, according to a state law enacted last year.

"We are hopeful that it closes," Ports Authority CEO Jim Newsome told THE Charleston Regional Business Journal. "We are not in business in Port Royal and we need to sell the property. We are going to help them as much as possible to do so."

Town of Port Royal officials couldn't be reached for comment Wednesday.

The Ports Authority board received two bids before the deadline last month.

A $15.4 million contract with The Furman Co. fell through earlier this year. Furman Co. president Steve Navarro confirmed Wednesday his second offer was not the one accepted.

"Good for the town, though," Navarro said in an email. "I hope for their sake it goes through successfully. I really like that town and want so much for them to see success."

Under state law, if the property was not under contract by June 30, ownership would have been transferred to the state's General Services Division and the property put up for auction. The deal now has until Dec. 31 to close.

The minimum allowable bid under the law was $14.8 million.

The 317-acre property -- 52 acres of which are suitable for building -- has been closed since 2004, when the Ports Authority deemed it too expensive to continue operating.

The Ports Authority began soliciting offers in 2007. Four different developers have tried unsuccessfully to buy it for residential and commercial development.

In March 2013, the asking price for the property was increased from $20.4 million to $22.5 million.

The price dropped with the most recent posting in April from real estate agency NAI Avant, which listed the $14.825 million minimum bid requirement for the whole property.

The Furman Co.'s previous offer went under contract in November. The contract was terminated in April when the Greenville firm did not have time to complete due diligence.

Follow reporter Stephen Fastenau at twitter.com/IPBG_Stephen.

This story was originally published June 17, 2015 at 4:13 PM with the headline "$15-million offer accepted for Port of Port Royal property."