10 Center St. - Folly

Folly Beach is an anomaly. As a barrier island, it lives up to its geographic qualities, barricading itself from conformity. Generational residents live side by side with transient, often medicated, beachgoers who rent mansions from investor gurus adorned in white socks & Birkenstocks.

The commercial sector of this whimsical island is no less unique— partially due to the aforementioned, medically induced, beachgoers, but more likely stemming from an archaic and ambiguous collection of zoning ordinances. Do you know you can construct a Bed & Breakfast on Folly Beach? Additionally, you can put a restaurant on the ground level of that Bed & Breakfast, BUT, that restaurant cannot have parking on the premises. Furthermore, that restaurant cannot be branded. Finally the management of that restaurant must permit the property owner to be a minority ownership interest IN that restaurant. Confusing, but cool…

Thankfully, negotiating a deal for the world famous Snapper Jack’s, wasn’t quite that nebulous. Like so many of the bigger deals, this one just fell into place. In speaking with a long time counterpart and commercial real estate owner, it was mentioned that a 10-31 property had been identified by his partners. This find resulted in their need to trade away an asset. In sifting through the requested financials, it came to my attention that Snapper Jacks came with a 15 year lease tied to a successful restaurant group. Additionally, that lease had both a personal & corporate guarantee in place. Finally, said lease had 4% annual increases on the base rent, and the tenant was responsible for all NNN’s, (Taxes Insurance & Common Area Maintenance.) All this to say, upon assignment, the new owner would stand to receive $150,000 in net operating income in year one. Needless to say, I found the purchaser. He was wearing white socks & Birkenstocks…