RealSource is excited to announce the investment opportunity of Pace Village in Myrtle Beach, SC., an excellent 119-unit, Class B, value-add community.

Pace Village offers a 7% entrance cap rate with the ability to cash flow from year one. This property was built in 2005 as a hotel and later was rezoned and converted to studio apartments. Pace Village is a short drive from the Myrtle Beach Boardwalk and is located across the street from the Tanger Outlets shopping mall. With the tremendous housing shortage in Myrtle Beach, Pace Village presents an opportunity to capture $150-$300 rent bumps to bring it up to current 2023 rental rates.

Myrtle Beach is a coastal city on the east coast of South Carolina. The area attracts over 20 million visitors annually and is called the "Golf Capital of the World", featuring nearly 100 golf courses. Myrtle Beach is ranked as the second fastest-growing metropolitan area in the country (per 2018 census estimates) and the MSA population is forecasted to grow to triple the national average over the next five years.

The hospitality industry employs about 28.3% of the city's workforce. Tourism and hospitality bring in over $7 billion into the city's economy and provide over 4,000 jobs. Myrtle Beach has approximately 425 hotels, with many on the beachfront, and approximately 157 accommodation units in total. The area is also home to over 80 golf courses and over 30 miniature golf courses. The Myrtle Beach Boardwalk opened in 2010 and has been recognized as the nation’s #3 boardwalk by National Geographic, as well as one of the best US boardwalks by Travel + Leisure magazine.

Myrtle Beach's upward growth trajectory has had a direct correlation to the multifamily market as fundamentals remain ripe as ever. From now through 2027, AxioMetrics projects 36% rent growth, catapulting Pace Village's standing in the market. The immediate area surrounding Pace Village boasts top-tier demographics with high household incomes ($93k), a dominant white-collar workforce (64%), and strong population growth (11% through 2026).

• #1 Fastest Growing City in the U.S.

  [U.S. News & World Report, 2022 and 2021]

• Top 20 Traveling Destinations in the U.S.

  [Newsbreak, 2022]



• Travelers' Choice Award

  [TripAdvisor, 2021]

• #9 America's Best Small Cities

  [Resonance Consultancy, 2021]

• #3 Top City Job Seekers Are Flocking too

  [Realtor.com, 2021]

• Purchase Price: $12,950,000

• Investor IRR: 15%

• Cash-on-Cash Average: 8%

• Cash-on-Cash Returns: 6.8% (Yr 1), 8.1% (Yr 2), 9.0% (Yr 3)

• Equity Multiple: 1.5x

• Projected Exit: 3 years

• Debt: 60% LTV, 5-year fixed rate loan

• Minimum Investment: $50,000

• Anticipated Closing: August 28th, 2023

This property has been examined by our analysts, investment committee, and capital expenditure team, however, return assumptions may slightly fluctuate as we work to complete our in-depth due diligence process. If you are interested in investing please click the "I'm Interested" button. Please note this does not guarantee you a spot in the deal. Reservations will be on a first-come, first-served basis. Full executive summary coming soon.