Ferncroft Capital acquires Fresh Market Shoppes on Hilton Head Island
A real-estate investment firm with longtime interest in Hilton Head Island has made its first step into the local market.
Charlotte-based Ferncroft Capital has acquired Fresh Market Shoppes on the south end of William Hilton Parkway, according to principal John Hollmeyer. The $19.5 million transaction closed on Dec. 18.
"Hilton Head is a market we have been targeting for years," Hollmeyer said.
The firm considered other retail centers previously for sale on the island, but the timing was right for the Fresh Market Shoppes acquisition, he said.
Ferncroft Capital's portfolio includes office, industrial and retail assets in the Southeast, particulary in the Carolinas, with a focus on grocery-anchored sites.
The Fresh Market Shoppes is the company's first property on Hilton Head, but South Carolina coastal markets are of high interest to Ferncroft, which has also acquired properties in Charleston and on Pawleys Island.
"The demographics are shifting from baby boomers to millennials, and they want these lifestyle centers," Hollmeyer said.
Younger workers increasingly have more flexibility to choose where they want to live because of technology, which makes markets such as Charleston and Hilton Head a good investment for retail, he added.
The 87,000-square-foot center has 16 tenants and is anchored by Fresh Market and Bonefish Grill. Other retailers include Dollar Tree, Massage Envy and West Marine. The center is currently 90 percent leased.
No formal or immediate plans have been proposed to renovate the center, Hollmeyer said, but in three to five years, he said Ferncroft Capital hopes to begin making "light renovations" as well as adding new tenants to the available space.
"We want local and regional restaurants," he said. "Farm-to-table (restaurants) would be fantastic, as well as boutiques that are not on Hilton Head, but whose demographics are in the area."
Hollmeyer said "high-end, specialty" retailers are part of the firm's vision for unleased space in the center.
That vision reflects the revitalization being felt across Hilton Head on the south end and the transformation of Pineland Station into Sea Turtle Marketplace farther north on William Hilton Parkway.
Follow reporter Ashley Fahey on Twitter at twitter.com/IPBG_Ashley.
Related content:
- New Best Western signals new life for old South Forest Beach area, December 17, 2015
- New Sea Turtle Marketplace coming together as Pineland Station comes down, October 13, 2015
- Town to construct bike paths from Fresh Market to Shelter Cove, August 20, 2014
This story was originally published January 5, 2016 at 4:34 PM with the headline "Ferncroft Capital acquires Fresh Market Shoppes on Hilton Head Island."