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Quick Update on Safe Harbor (& The Beach Co.)

On every Port Royalian's mind is, "What is happening with Safe Harbor?"


A picture of Safe Harbor's logo onj a container at the Port Development

Safe Harbor


Safe Harbor, followed by The Beach Company, presented at Council's meeting this Wednesday, August 9th. So we thought we'd update you with what they had to say.


Safe Harbor provided a detailed overview of its achievements since the port property purchase in 2021. Sheaffer Watt from Watt Inc. shared an update on the demolition and future plans for the vacant spaces. He commented that the demolished concrete was kept on the premises to minimize the number of dump trucks traveling in and out, as well as for the purpose of recycling and reutilization.


A diagram of the various buildings of the Port Royal port development

Future plans for Safe Harbor's docks in Port Royal, South Carolina

In a nutshell, Building A has now pretty well been demoed. The terminal slab will be where the future "Boatyard Operations" will occur. When pressed by Councilman Jerry Ashmore, Watt explained that there will be movable racks where boats will be pulled out to have work done such as having their bottoms painted or an engine replaced.


Building B is where the future docks will be built from. The building will be outfitted with plumbing, heat/air, etc.

The transition of Building C from Safe Harbor in downtown Port Royal

Building C has been fully renovated and is now a 2-tenant facility. No updates as to whether or not there were tenants.


Building D was an older decapitated trailer that has been removed.


Building E was also a total demo. Its remaining concrete pad is currently being used for temporarily storing boats and will be the future site of an "Open Dry Stack" storage facility. This storage facility would not have walls, but could be built as high as the permitted 48'. Watt agreed to possibly explore incorporating solar panels into some of the larger buildings.


Building F has received a "beautification" according to Safe Harbor. They have added faux fixtures to the exterior walls and doors and removed the silo remnants between buildings E and F. The next step is to enclose the lean-to and make some of the eleven units as trades spaces where boats will be worked on and some will be rented as storage.


Perhaps one of the best pieces of news is that Safe Harbor intends to bury the powerlines.


Colorful array of large cranes at the end of Paris Ave in Port Royal, SC

Next, Councilman Daryl Owens inquired about the aesthetics, questioning how long we'd be looking at the colorful array of cranes or if that was part of the ultimate plan. Councilman Kevin Phillips also asked about what the actual vista view would be when coming down Paris - How much of the "boatyard operations" would be part of that view? Although Watt was unable to answer the question, we did learn they are not planning a hotel.


Noah Krepp, Port Royal's Planning Director, was able to shed some light on the Development Agreement to help answer Kevin's question, explaining the Development Agreement has a one-acre park planned between buildings A and B and a 20-foot wide waterfront promenade that will run that length as well.


Finally, Mayor Joe DeVito had clearly requested Safe Harbor's update to include a timeline as to when the docks would start being built and what other projects the company had in the works before Port Royal. Watt agreed to get back with Mayor Devito, but could only offer that permits had been applied for and that they were waiting to hear back, and that construction would begin afterward.


Progress made by Safe Harbor in the demolition of dilapidated buildings.

Overall, the presentation "lacked luster" for lack of better use of words. A Master Plan for the Port Development was never mentioned, and although it appears as though The Beach Co. is on track to handle the residential areas, numerous questions remain with regard to the other parcels, particularly the commercial districts of The Marina Village and the Port Village.



The Beach Co.


JC Darby reported for The Beach Co. and its plans for the Bluff Village and eventually Ribaut Village. Safe Harbor initially engaged the company in 2021 with the aim of constructing residential areas for its port development. While there is an expectation that The Beach Co. will eventually manage the property, the conclusion of the deal is still yet to be confirmed. As part of their due diligence, they are working to ensure that their plans adhere to the development agreement as well as meet both environmental standards and, naturally, turn a profit.


Darby began with a clear statement that his company approaches this unique project with a great understanding of the need to incorporate the development into the "fabric of the community" and with regard to the "historic culture." For instance, the spine roadway throughout the property was aptly called the Magnolia Line Road, paying homage to the railroad that once ran there.


Darby spent considerable time outlining the obstacles the property has presented, a few of which have been recognized as recently as March or April. To gain the information, regulations, and planning required for the project, The Beach Co. has constructed a team of specialists.


Involved in the project was Ward Edwards Engineering, Gulf Stream Construction, Witmer Jones Keefer Landscape Architects (of which Dan Keefer was present in the audience), Rangewater (developers focused on multi-use, multifamily, and build-to-rent properties), SM&E (environmental aspects of the project), Ryan (accounting), and Allison Ramsey Architects (from which Bill Harris follows Darcy with details in The Beach Co. presentation).


Despite their knowledge of coastal construction, Darcy and their team found that they needed to readjust their plans upon inspection of the land and the limitations enforced by DHEC (primarily that they had to build rentals and not sellable lots). It turned out that the volunteer clean-up requirements were much more rigorous than anticipated and the soil had a greater gradient than assumed. In 30 markets throughout the Southeast, this project is proving to be the most expensive in terms of infrastructure, despite being the smallest market that Darcy's firm has handled.


The Beach Company's draft of plans for the Bluff Village residential development

After considering all relevant factors in addition to the growing interest rates, The Beach Co. prepared a build-to-rent plan for the Bluff Village. This plan features different house/townhouse sizes, including small 1-2 bedroom "Mews" situated above garages. As Rocket Mortgage explains, build-to-rent is essentially a development wherein separate units are built for long-term renting and usually managed by a major firm instead of individual owners.


The primary ambition is to cultivate enduring tenants, preferably through annual leasing agreements. Generally speaking, this attracts a demographic with the means to pay for more than just renting an apartment but isn't ready to commit to buying a house, whether due to fiscal restrictions or personal reasons.


"Investors benefit from [build-to-rent] properties because rent is higher than apartment buildings and turnover is lower, allowing for higher profits. And renters like them because they get the space and feel of owning a home without the higher costs." - Investing Answers

After presenting his vision of the development, Bill Harris of Allison Ramsey Architects made it clear that their objective was to make something beautiful that could be a source of pride. With only half the density permitted and twice the civic area, The Beach Co.'s plan was devised to be an integral part of Port Royal and appear as if it had always been there. Their design ensured that the vistas at the end of each road were preserved and that the Spanish Moss Trail would be securely integrated and avoid driveways.


A drawing of the projected village development from Allison Ramsey Architects

Harris, having worked as Port Royal's architect in the past, envisioned a Lowcountry-style housing concept, with the added intention that in a few years, the newly-developed area would blend so seamlessly into its surroundings that it would be indistinguishable.


Architectural designs of the various types of housing units to be built in Port Royal Bluff Village

His ambition is to meld the aesthetics and design with specific elements, such as a standalone post office (perceived as a civic area), a pavilion and a bonfire spot, plus empty spaces bordering the waterway at the end of each avenue. The entire development contains a mere 239 units, of which the vast majority (185) are 2-3 bedroom townhouses. 21 units are dedicated to larger, single-family houses on the waterfront, and the remaining 33 are smaller units. Interestingly, 21 of the largest houses have nine unique designs between them, while the 205 townhouses only have two similar renderings.


When it was all said and done, The Beach Co. seemed to be eager to get the closing process finished. Van Willis and Mayor Devito provided an estimation that predicted the construction of the groundwork, such as the spine road and sewer, would take approximately 10 months. The timeframe could be condensed even further, as all of the property is in the same ownership, and roughly 18 months could be allowed for the completion of the vertical houses. Thus, the entire project should be concluded within the span of two to three years.


At the end of the evening, the main issue was who would be inhabiting the 239 units? Harris and Darcy had suggested that a variety of sizes and prices were on offer, but no prices were actually provided. Councilman Phillips questioned, "Can teachers, firefighters and other [middle-class families] afford the rent?" In Beaufort, the missing middle's rent budget is approximately $1,200/month - shockingly low. Does this project come close to that market? Probably not. It seemed unlikely that the proposed rents would meet this market demand, and the developers were not offering any guarantee of an allocation for the middle-class budget.


This begs the question, who can afford these rent ranges? Can Port Royal attract an affluent young population willing to pay more expensive rent than say the Preserve? Well, the experts feel confident they can fill the 239 units.


Where Are We Headed?


The Beach Co. has put in considerable effort in the form of research and planning in order to make sure that the Bluff Village development is ready to begin promptly. Afterward, they intend to move forward with the Ribaut Village project, drawing from what they learn from the former to apply to the latter. With all of their preparations thus far, it looks like they have a firm idea of the path they will be taking.


Safe Harbor. That's a different story. Without an overarching blueprint or vision, it is difficult to ascertain how all the components will combine seamlessly. So, without a Master Plan, can The Beach Co. proceed with its project?


Aerial view of Safe Harbor's marina location in Port Royal South Carolina

It is promising that The Beach Co. is collaborating to guarantee an effortless switchover between zones, particularly with the implementation of the Spanish Moss Trail into the residential areas. However, it is uncertain what will become of the Marina Village and the Port Village. Can The Beach Co. pull in a wealthy group of occupants for the 239 units without having a plan in place for these vital areas that need to be established? We are yet to discover the answer, but the mayor and the council have asked for more regular and detailed updates from the two developers, so we trust that we will not be kept in the dark for too much longer.


So, the big question.... what does this mean for our town not only now, but in 10-20 years when all of those 239 units need new AC units, dishwashers, roofs, etc.? Will The Beach Co. sell the properties off one by one once the entire development becomes outdated all at once? What will happen to the maintenance of the surrounding property as the housing units themselves begin to diminish and need repair? Have we seen the long-term results of build-to-rent single-family communities or is their inherent design destined to be similar to suburban sprawl? Will our children and grandchildren be tasked with bearing the expense of maintaining the infrastructure of this development? How can we be assured these properties remain long-term rentals with no current restrictions in Port Royal? Is it possible that the sudden environmental worries are merely a ruse for the construction of rentals instead of single lots in order to cover the expenses of the venture more efficiently?



Players


Sheaffer Watt | Project Manager

"Sheaffer is a Project Manager with 4 years of experience in commercial construction. He joined Watt, Inc. in 2019 after graduating from Florida State University with a degree in Business Management and Marketing. Sheaffer is the Project Manager on a master planned, multi-year, full-service mega yacht marina & boatyard campus project for Safe Harbor Marinas in Port Royal, SC. Sheaffer recently completed Florida’s premier bass boat dealership for Lake and Trail USA which includes a fuel station and convenience store in Okeechobee. Sheaffer is working on preconstruction of a multi-level urban self-storage/retail/parking garage project in West Palm Beach. Sheaffer also enjoys assisting our clients with drone video and editing for their projects."


JC Darby | Development Manager

"JC Darby joined The Beach Company in 2020, after five successful years in Nashville, Tennessee where he worked as a commercial broker for Southeast Venture. During his time there, JC accomplished a multitude of transactions, including the sourcing of numerous development projects for The Beach Company in multiple markets such as Nashville and Chattanooga, TN and Huntsville, AL. Today, JC oversees several ground-up projects throughout the Southeast in his leadership role as Development Manager for The Beach Company. Growing up in the family business, he brings awareness to detail and a passion for real estate that naturally comes with a lifetime of mentoring and study. JC’s undergraduate degree comes from The University of South Carolina, and he holds a Master’s in Business degree from The Citadel as well."


Bill Harris | Architect - Prinicpal

"Bill has led his team in several of the most successful Traditional Neighborhood Developments in the southeast, including Newpoint, I’On, Watersound, East Beach, Hammonds Ferry and Habersham. Bill manages a team of architects and is responsible for successfully imparting his knowledge and exceptional work ethic."



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