kitchen countertopsin Sullivan's Island, SC

There are expensive places to live in South Carolina.

Then there is Sullivan’s Island.

CashNetUSA recently ranked Sullivan’s Island as the most expensive neighborhood in South Carolina. The ranking is part of a list of most expensive neighborhoods in every U.S. state, based on Zillow data.

Home prices across South Carolina overall have skyrocketed the last two years. For instance, the median home sales price in the state was $311,032 in the first quarter of 2023, up 22% from the first quarter of 2021, according to South Carolina Realtors.

And yet, that is all chump change compared to home ownership in Sullivan’s Island. A home there costs an average of about $5.4 million, the ranking states.

The 2.5 mile-long barrier island and its charming little beach town is about 10 miles from downtown Charleston. The island has a strict preservation plan and so doesn’t have the usual accommodations that visitors would expect, like major hotels and motels. Instead, only vacation rental homes are available.

The island does feature a strong restaurant scene, with plenty of options for fine dining and family eating.

Sullivan’s Island also has a good bit of history. The island was settled in the late 17th Century by Capt. Florence O’Sullivan and was later the site of a major Revolutionary War battle.

To compile the rankings, CashNetUSA used real estate data from Zillow to group together neighborhoods of towns and cities in all 50 U.S. states. It then calculated the average price in each neighborhood by adding together the house prices in each area and dividing them by the number of properties.

Why Sullivan’s Island is pricey, it is still not among the top most expensive places to live in the U.S. Below is a list of the 10 most expensive neighborhoods in the U.S. and their average house prices, according to CashNetUSA.

To keep things more in perspective, here’s an interactive map that shows the latest median sales price for homes in each South Carolina county, using data from Redfin.

SULLIVAN’S ISLAND — Town Council can control most all aspects of tree-cutting in its beachfront maritime forest because it can’t be bound by decisions made by previous councils in the matter, a judge has ruled.

The basic principle of Circuit Judge Jennifer McCoy’s ruling is a town council cannot enter into an agreement that will bind a successive council into doing or not doing certain things.

The decision, filed Jan. 30 in state court in Charleston, comes after a former Sullivan’s Island council reached a settlement in 2020 that mandated more thinning of the maritime forest than the town had contemplated.

That settlement resolved a decadelong lawsuit — stemming back to 2010 — from a group of homeowners next to the forest who wanted to see more management of the land from the town.

The forest gradually grew on land that is accreting where the island meets the Atlantic Ocean. The effect has created a thicket between the large beach houses and the sandy beach, which blocked views of the ocean while also creating swampy and forested territory.

Any future councils would have been bound to that previous agreement.

The court decision changed that.

“As mayor, I’m very pleased that the judge agreed with our contention that that settlement agreement was not consistent with South Carolina law and that it should be voided,” said Mayor Patrick O’Neil.

Since the settlement was agreed upon, Sullivan’s Island residents elected a new council with a majority that was more favorably disposed to the maritime forest, O’Neil said.

“We’ve heard a lot from many residents — not all, but many residents — who fervently disagreed with that agreement,” O’Neil said. “That urged us to do something.”

The council brought forth a declaratory judgment that the prior settlement agreement was unenforceable and therefore void.

The court agreed with that position.

William Wilkins, a Greenville-based attorney with the firm Nexsen Pruett who represented the town, said he appreciated the prompt attention Judge McCoy gave to the matter.

“She correctly applied the relevant principles of law, including the law that a town council may not enter into agreements that will bind a successive town council under the facts of this case,” Wilkins said.

Development is prohibited on the land at the center of the complaint. The town can permit or do certain amounts of cutting on the maritime forest when deemed appropriate or beneficial.

Landowners can apply for permits to cut three species of bushes or trees in front of their property, between it and the beach.

Guidelines are in place for how low the trees and bushes may be trimmed.

Issues dividing residents in the matter included those who wanted a better view of the water or were concerned about the wild animals living in the forest, such as coyotes, and those who preferred allowing the natural state to continue.

SULLIVAN’S ISLAND — The home market continues to sizzle in this pricey seaside town, with real estate agents pointing to its community appeal, a longtime ban on short-term rentals and resilient, well-heeled cash buyers among the driving forces.

So far this year, three big-ticket residential transactions have closed on Sullivan’s Island, ranging from nearly $8 million to slightly more than $10 million.

Sullivan’s commands a premium partly because it offers limited inventory in a highly desirable location, according to agents familiar with the local market. Some also point to the lack of rentals.

“There is not a transient population out there,” said Lyles Geer, president and broker-in-charge of William Means Real Estate. “You don’t have an abundance of renters or people who don’t live out there. ... Buyers are paying for the exclusivity of living in a residential community.”

Michael Scarafile, president of Carolina One Real Estate, echoed his remarks.

“One reason is that Sullivan’s doesn’t allow short-term rentals,” he said. “Those are all residential sales.”

Scarafile pointed to the recent run of seven- and eight-figure purchases as an example of the age-old principle of supply and demand.

“There just aren’t that many houses on Sullivan’s, and the market for residential use on the islands continues to perform well,” he said. “The high-end market is holding up very well.”

Owen Tyler, managing broker of Cassina Real Estate Group, agreed prices on Sullivan’s are rising because of the dearth of inventory and continued interest among would-be buyers from outside the region or state.

“They aren’t building more of the island,” he said.

Tyler also pointed to a community-minded vibe on Sullivan’s as an attraction for buyers who can afford the lifestyle.

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“Sullivan’s Island has always been for a lot of people the epitome of where they want to live,” he said. “It has great beaches, it’s an island and it has a small-town atmosphere. Nothing feels out of place or unusual.”

But Tyler doesn’t buy the notion that the town’s 22-year-old rental policy of not allowing overnight stays of less than 28 days has an impact on home sales.

“Are people wanting to live there because of a lack of short-term rentals? Maybe, but I don’t ever hear that,” he said. “Most of the people who are buying recently are not full-time residents of Sullivan’s.”

To Tyler, the main factor driving up prices is an abundance of deep-pocketed buyers who are able to make quick and mostly cash offers for an extremely limited number of homes.

“We can’t find enough people to sell (homes), which is why you are seeing the price escalation,” he said.

The most recent transaction involved the five-bedroom oceanfront house with five bathrooms and two half baths at 3213 Middle St. It changed hands March 29 at the list price of $7.95 million, according to Charleston County land records.

The buyer is a limited liability company from Florence. The seller is a Charlotte firm that bought the property when it was a vacant lot for $2.5 million in 2020. The 4,160-square-foot house near Breach Inlet was completed the next year.

Ashley Haynes of East Islands Real Estate represented the seller, and Tommy Manous of Carolina One Real Estate represented the buyer.

The sale follows two other notable residential transactions on Sullivan’s.

A 4,350-square-foot oceanside house at 2411 Atlantic Ave. last month fetched $10.1 million, shy of the all-time record of $10.5 million a buyer paid for 1901 Thee St. in 2021.

Earlier this year, a 4,360-square-foot spread at 812 Conquest Ave. on the western end of Sullivan’s changed hands for $8.7 million.

The Charleston-area industrial real estate market proved resilient in the first quarter despite rising interest rates and a cooling economy, with tenants absorbing 2.2 million square feet, according to a new report.

All told, according to Colliers, 3.7 million square feet of new space came online in the first three months of the year. Vacancy rates ticked up as well, but they remained near historic lows at 3.74 percent despite all the new construction.

“Since the beginning of 2021, the market has absorbed an average of 1.6 million square feet per quarter,” the commercial real estate firm said in its analysis. “This was largely driven by warehousing to support the advanced manufacturing sector, particularly internal combustion and electric vehicle manufacturing, and expansion of third-party logistics activity.”

Over the coming months, those business sectors will continue to drive demand for additional real estate, according to the report. About 11.8 million square feet of industrial space is under construction in the three-county region.

The Port of Charleston is still the main driver, even though cargo levels have fallen in recent months as post-pandemic consumers spend more money on services and experiences than on imported goods. Inflation has also tamed what had been a frenetic spending spree last year on items like furniture and electronics.

A plan by ZEB Metals to build an aluminum recycling plant on 32 acres along U.S. Highway 52 in the Goose Creek area was the largest industrial announcement dollar-wise during the quarter, Colliers said. The $80 million project is expected to create 28 jobs.

Second to that project was a $49.9 million cold-storage warehouse that Charleston-based FlexCold plans to build along Patriot Boulevard in Dorchester County. The 151,600-square-foot building on roughly 51 acres is expected to create 59 jobs.

A separate report by Avison Young shows average annual base rents for Charleston-area industrial properties hit $8.89 per square foot in the first quarter and are expected to continue rising on the back of strong demand.

“As larger tenants relocate to the Charleston market, demand has increased for industrial space,” the firm’s local office said. “The projected average building size for deliveries in 2023 is 346,000 square feet. Based on construction activity, this number is expected to rise to 540,000 square feet in 2024.”

The Palmetto Commerce Park area in North Charleston and the Summerville region along Interstate 26 continue to be the hottest spots for industrial construction, with a combined 42.7 million square feet of space — nearly two-thirds of the market’s total.

Up a notch

An economic development trade publication reports South Carolina is the nation’s seventh-best state for attracting industrial investment.

The ranking is included in Site Selection’s annual Prosperity Cup list, which measures the effectiveness of each state’s economic development efforts.

The Palmetto State moved up one spot in the magazine’s 2023 rankings. Neighboring states Georgia and North Carolina placed first and second, respectively.

A focus on electric vehicles and the batteries that power them helped the S.C. Department of Commerce recruit 120 businesses and expansions representing investments topping $10.27 billion in 2022 — a record year for economic development in South Carolina and an 80 percent increase over the previous mark set in 2021.

The new deals promise to create 14,083 jobs over time, with most of the activity centered around plants in the Charleston region and the Upstate.

Bottled up

South Atlantic Canners is spending $28.7 million on a multiyear expansion at its Lee County site that will create 15 jobs over the next five years.

The company is managed by Coca-Cola Consolidated Inc., the largest independent Coca-Cola bottler in the United States with production of more than 300 beverage brands and distribution to 14 states and Washington, D.C.

South Atlantic Canners plans to renovate its existing Bishopville facility and add new, state-of-the-art equipment. The expansion is expected to be completed by the end of 2027.

SULLIVAN’S ISLAND, S.C. (WCBD)- Sand dunes across the Lowcountry kept people safe from Hurricane Ian, but now they are going to need some repairs after the storm eroded sand from the shores.

“All things considered the town made out very very well. We can’t find anywhere on Sullivan’s Island where the ocean penetrated behind that primary dune,” said Andy Benke, the Town Administrator for Sullivan’s Island.

The island had two places where the storm eroded a significant amount of sand. At Station 22, rainwater that collected behind the first wall of dunes found its way back out to the ocean through a low lying part of the dunes.

The ocean waves smacking up against dunes as tall as 12 feet were eroded at Station 28. The sand that remains makes some of the larger dunes look like a cliff. But, Benke says that’s what they’re supposed to do.

“There are dunes and vegetation that provide relief and change of elevation so that when there is a wave event it slows the wave down quite a bit” said Benke. “The town has this wide track of land between the mean high water mark and the private property line. That’s an extra added protection that we have.”

On Folly Beach, Mayor Tim Goodwin is also dealing with issues from beach erosion.

“We have noticed dune erosion just from Ian,” said Mayor Goodwin. “We know that we need to do some work on the beach. We’ve already started planning on what we can do as a city.’

Unlike Sullivan’s Island, Folly Beach is a federal partner with the Army Corps of Engineers. That means that the city can receive federal funding to help repair their sand dunes. Mayor Goodwin is awaiting the engineers’ report to decide what needs to be done.

“The Army Corps of Engineers has been here to do a survey and we’re waiting on their data to be processed,” said Mayor Goodwin.

“Right now the Myrtle Beach, Pawleys Island and Folly Beach coastlines experienced significant erosion,” said Wes Wilson, a Project Manager for the Army Corps of Engineers.

That process might not be finished until the beginning of 2023 according to the Army Corps of Engineers.

“We’re going to collect that survey information. We’re going to analyze the date and estimate costs and write a report that will be used to see if that project qualifies for emergency rehabilitation,” said Wilson. “Two main factors to consider during the process are the significance of the event and the significance of the damages of the event.”

After that, Congress has to decide whether to give supplemental funds to the Army Corps of Engineers to undertake the repairs.

Officials and engineers want people to remember that the dunes are here to protect and damage to them is much better than damage to people, buildings or roads.

“Sand dunes disappear because we build sand dunes and we work hard to keep sand dunes on the beach because that’s the first line of defense for the beach,” said Mayor Goodwin.

SULLIVAN’S ISLAND, S.C. (WCBD)- During a sunny and clear day, the old Pitt Street Bridge or ‘Old Bridge’ on Sullivan’s Island is a spot for local fisherman to look for a fresh catch.

“I like to fish up here because the Red Drum will travel down the grass line,” said Mark Thawley.

Since 1985, Thawley has been coming to this enclave with his rod and string. He says that back then people at Haddrell’s Point Tackle shop told him that this spot was the best for fishing.

“I’ve been fishing here ever since. It’s that good of a spot,” said Thawley. “Last year on October 24 I caught a seven-pound flounder here; my biggest yet.”

But, Thawley’s saltwater sanctuary has long been dormant and is in need of repairs.

“It’s not very safe. There’s a little bench up there, but there’s no railing or anything like that. It’s a rugged little walk so old people might have a hard time. It’s not very safe for them either,” said Thawley.

The old Pitt Street Bridge once connected Mount Pleasant and Sullivan’s Island with trolleys going to and from each side. The remnants of the Old Bridge have stood in the water and on the banks for decades after the Ben Sawyer Bridge was built in 1945.

“It’s been sitting here idle, but it’s a piece of history for the town,” said Andy Benke, the Town Administrator for Sullivan’s Island. “It’s a great recreational place.”

Due to the old bridge’s historical significance, the Town of Sullivan’s Island wants to keep the structure intact. Since 2018, town leaders have been exploring methods to stabilize and restore the area from the erosion that’s impacted the shoreline.

“We watched earlier a large watercraft go by at a very slow bell, but he still drew water as he approached and he threw out a small wake as it went by,” said Benke. “It’s just constant motion on the docks near us and the Old Bridge. It causes water to wash up around the backside of this structure and eventually erosion.”

Other causes of erosion, mostly on the structure’s north side, are due to tidal flooding and rainfall.

The Town of Sullivan’s Island is getting closer to a solution though. Town Council is in the process of getting construction drawings to restore and stabilize the area. After that, a contractor can be hired and construction could begin in the fall of 2023.

“We’ll stabilize the foundation of the Old Bridge with an environmentally friendly product, sandbags, dirt and vegetation,” said Benke.

Hope for an improved Old Bridge has Thawley feeling optimistic that his favorite fishing spot will be even better than before.

“If they just put a little bit into it that would be great,” said Thawley.