Cliffs, Kiawah developer acquires 20,000-acre coastal property

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By Molly Hulsey and Ross Norton 

Master developer of The Cliffs and Kiawah Island, South Street Partners, and private equity real estate manager Henderson Park Capital Partners have grand plans for what the companies call one of the largest contiguous waterfront properties on the East Coast. 

Following a year of record breaking sales at the Cliffs and Kiawah Island, the two firms recently acquired Bluffton’s 20,000-acre Palmetto Bluff community with a goal of developing a second golf club, waterfront village and additional amenities on the property, according to a news release. 

The existing community features 32 miles of riverfront access, nature trails, village centers with a food and beverage program, the Forbes’ Five Star Montage Palmetto Bluff Resort and a Jack Nicklaus Signature Golf Course. Other assets include residential neighborhoods with homes ranging from multi-million-dollar legacy family compounds to smaller single-family lots, according to the release. 

“This is a generational buy which perfectly aligns with our other assets, including Kiawah Partners, Kiawah Island Club & Real Estate, The Cliffs and The Residences at Salamander,” Patrick Melton, managing partner at South Street Partners, said in the release. “Palmetto Bluff is a high quality, best-in-class property which fits seamlessly within our portfolio. The synergies are everywhere.” 

South Street Partners, headquartered in both Charleston and Charlotte, manages $1.3 billion in residential private club and resort assets. Through the third quarter of 2020, the company’s The Cliffs community saw a 153% increase in closed sales from 2019, while Kiawah Island Club reported a 633% increase in contracts and 1,400% increase in volume in July 2020 over July 2019. 

“People are not traveling, you know, and we offer a product that is like vacation at home,” Rob Duckett, president of The Cliffs told GSA Business Report last October. “We have things for them to do every day that are recreational in nature. We offer things that are social in nature. We have what we call cultural pursuits where you can continue to learn here in the communities.” 

The joint venture will manage all aspects of development and management of the resort and single-family community. Working alongside Palmetto Bluff’s current leadership team and the Montage Hotels & Resorts leadership team, Henderson Park and South Street will contribute to sales and marketing operations, as well as management of the club and resort. 

Anson Village, an incoming waterfront village, is set to open up access to a large waterfront space and the southern intercoastal waterway within the recreational preserve. 

“Palmetto Bluff is an outstanding drive-to resort and residential destination set in a unique landscape which is set to benefit from the continued resilience of the premium leisure sector and South Carolina’s long- term appeal,” Nick Weber, CEO and founder of Henderson Park, said in the release. “The resort offers great potential for further expansion and we are excited to team up with South Street as operating partners to enhance a truly exceptional luxury community for residents, guests and members.”  

Henderson Park has about $10 billion including holdings in the office, logistics, multifamily, residential, student housing, hotel and retail sectors, as well as number of active development projects.