Atlanta-based SG Property Services has entered the Charleston market with the purchase of 61 West, a 43,426-square-foot medical office building located in West Ashley. This acquisition marks the company’s first foray into the highly competitive Charleston real estate market.
Strategic Location and High Occupancy
The property, located at 1483 Tobias Gadson Blvd., is currently 86% occupied, with a strong mix of healthcare tenants, including the University Medical Association, Anesthesia Associates, and Parkwood Pediatrics. The building was recently remodeled in 2023, enhancing its appeal to healthcare providers. Notable upgrades include electric vehicle charging stations and solar panels, reflecting a modern, eco-friendly design.
A Competitive Market for Medical Offices
Charleston’s medical office market is known for its low vacancy rates, with an average vacancy of just 5.5%. The market faces high demand but limited supply, making it challenging for new developments to keep pace with population growth. Gary Lyons, principal at Avison Young, noted that new medical buildings are scarce, which makes 61 West’s established tenant base and recent renovations a prime opportunity for a national firm like SG Property Services.
Strong Market Conditions
Avison Young’s Gary Lyons and Gregg Legerton represented the seller, Tobias LLC, in this transaction. The medical office market in Charleston remains tight, with a high barrier to entry, making this acquisition an important strategic move for SG Property Services as they expand their portfolio in the region.
