250 new Hilton Head apartments proposed for abandoned condo site. Take a look
An abandoned, half-finished building is hidden along Hilton Head Island’s Broad Creek, shrouded by trees and covered in vines.
The four-story tall concrete structure was supposed to be luxury condo building with stunning views of the Broad Creek marsh. But it was abandoned in 2006, after the original developer defaulted on his loans and was forced into bankruptcy.
Only one condo building out of six were completed before the project failed. Those that bought property in the finished condo building have watched the abandoned structure decay from their balconies for nearly 20 years.
At long last, a new developer is writing a final chapter to that saga.
Orange Capital Advisors, an Orangeburg-based real estate development firm, is proposing a new 254-unit long-term rental community on the property. The existing condo building will remain untouched, while the derelict structure will be demolished, according to project documents.
If all goes smoothly, construction will likely start at the beginning of next year, Orange Capital President McFaddin Blanding told The Island Packet. Construction will likely take about two years, meaning apartments would be ready to rent sometime in 2029, he said.
Blanding says the abandoned property is a “relic” of the 2008 financial crisis, and an interesting “case study” of “what life looks like when an economy can turn on a dime.”
Inside the new complex
In project documents, the new development is referred as Broad Creek Apartments. The complex will be located at 10 Verbena Lane.
The site is located just off of Marshland Road, close to where it intersects with Cross Island Parkway. It overlooks the Broad Creek Marsh.
Three large apartment buildings will be constructed around an existing stormwater pond, project plans show. Two of the buildings will be six stories tall, while the third will be four stories. The first floor of each building will be reserved for parking.
The development will offer a mix of one-, two-, three- and four-bedroom units, with floor plans ranging from 980 to 3,917 square feet. Amenities will include a pool, clubhouse, spa/fitness center and bike storage barn.
Rental rates are yet to be determined, but will be comparable to those at other high-quality coastal communities, Blanding said.
The property is currently owned by Ephesian Ventures, LLC, which bought it for $9 million in 2008, property records show.
Orange Capital Advisors will oversee overall operations and strategic management, while a third-party-firm will manage day-to-day operations, according to project documents.
Asked about impacts to traffic on Marshland Rd, Blanding said a traffic impact study has been completed and submitted to the South Carolina Department of Transportation. Traffic counts met SCDOT guidelines, Blanding said, but the town asked the developer to make some improvements to the nearby road “to be on the safe side.”
A right-turn lane will be constructed on Marshland Road at the entrance to the community and the existing left-turn lane will be improved, Blanding said.
The project was presented to the Town of Hilton Head Island Design Review Board at its June 24 meeting.
According to Kelly Spinella, the town’s communications and marketing director, the proposed development will need to pass through the town’s Development Plan Review process and receive final approved from the Design Review Board before going in front of the Planning Commission.
Abandoned structure to be laid to rest
An abandoned concrete structure on the property will be demolished to make way for the new apartments, project documents show.
The vine-covered concrete skeleton has sat in that location for nearly 20 years, according to previous Island Packet reporting.
The four-story derelict structure was the supposed to be the second of six luxury condo buildings planned for the property. The previous developer cleared trees and completed the first condo building in 2002, now called Residences at Edgewater.
While the second building was under construction, the developers defaulted on their loans and abandoned the project in October 2006, court documents say. Investors forced the developer into involuntary Chapter 7 bankruptcy in 2007.
Residents of the completed condo building have been fighting for years to get the half-finished concrete structure torn down, according to previous Island Packet reporting. They view the derelict structure as an eyesore that makes their properties difficult to sell.
The Island Packet reported on the abandoned building in 2014, and then again in 2018. Still, it has remained in its place.
Once the new apartment complex is complete, Blanding said the condo owners will have access its amenities and a dock on Broad Creek at no charge.
“It hopefully brings some closure to those owners that bought into a vision and have been sort of stranded on a little island,” Blanding said.
Other apartment buildings on Hilton Head
Condos, timeshares, hotels and gated communities are not in short supply on Hilton Head Island. Meanwhile, a small number of traditional apartment complexes dot the island.
Aquatera, a 260-unit apartment complex on Gardner Drive, was constructed in 2022. Current available listings range from $2,223 per month for a one-bedroom unit to $3,065 per month for a two-bedroom unit.
WaterWalk at Shelter Cove, constructed in 2017, offers 240 luxury waterfront apartments. Current available units range between $4,037 to $5,037 per month for two bedrooms.
Currently under construction is Northpoint on Jarvis Creek, 157-unit workforce housing complex located right next to the U.S. Post Office. Units will be exclusively reserved for people that work on-island, and are expected to cost between $1,600 and $3,600 per month, depending on household income and unit size.
