Iron Bridge Capital has broken ground on the Charleston Tech Center, a 92,000-square-foot office project within a Charleston, S.C., Opportunity Zone. Hunt Real Estate Capital is providing equity funding alongside debt financing through Synovus. The development team anticipates the building will open in late 2020.
Located at 999 Morrison Drive, the 1.9-acre development site is situated within the only Opportunity Zone tract in the city of Charleston. The parcel is close to Interstate 26’s intersection with Septima Clark Parkway. While the six-story project’s surrounding areas are extremely limited in terms of office stock, per Yardi Matrix data, downtown is less than 3 miles away, accessible via two public bus routes.
Charleston Digital Corridor will anchor the development through a business incubator for start-up companies, with space set aside for more well-established tech firms. The completed building will include retail at street level, and plans call for a conference center and an open-air deck at the top floor of the structure. The City of Charleston intends to build and manage an adjacent parking garage with 816 spaces.
A recent Cushman & Wakefield report shows that investment into the federal Opportunity Zone program is gaining significant traction, with most investors planning to put money into multifamily projects. The program was signed into law as part of the 2017 tax reform package, and the IRS released a guidance document to assist fund sponsors this April.