120 Alex Patterson Rd, Hilton Head Island, SC 29926
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120 Alex Patterson Rd, Hilton Head Island, SC 29926
Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage company business in Nevada.
© 2025 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. For state licensing details for the above entities, visit www.berkadia.com/licensing.
INVESTMENT SALES
CONTACT
MORTGAGE BANKING
JEFF HEATH
Managing Director 215.328.1417 jeff.heath@berkadia.com
JEREMY LYNCH
Director 215.328.1337 jeremy.lynch@berkadia.com
BLAKE COFFEY
Senior Director 843.628.3766 blake.coffey@Berkadia.com
DAVID LANSBURY
Senior Managing Director 843.806.4399 david.lansbury@Berkadia.com
THOMAS COLAIEZZI
Director 901.603.8590 thomas.colaiezzi@berkadia.com
4201 Congress Street Suite 200 Charlotte, NC 28209
CHARLOTTE OFFICE
MATT ROBERTSON
Associate Director 919.812.3174 matthew.robertson@berkadia.com
PHOTO GALLERY
LOCATION
The Cottages at Alex Patterson Place is a Class-A SFR community located in the high barrier-to-entry submarket of Hilton Head Island, South Carolina. The prop¬erty is conveniently located minutes Hilton Head’s only major commuter road, offering exceptional connectivity throughout the island. Hilton Head Island is one of the Southeast’s most affluent submarkets, boasting an average household income of nearly $100,000 with median home values north of $750,000.
The property offers 100% long-term occupancy without risk of vacancy or credit loss by virtue of strategic master leases with investment grade credit tenants who are among the island’s top employers. Rental increases are guaranteed by lease to increase a minimum of 2.5% year-over-year until lease expiration. Certain leases also include rental increases indexed to CPI providing the potential for rental rate increases to exceed the 2.5% minimum . Master leases also offer risk mitigation through a “double-net” structure where tenants are responsible for the cost of maintenance and care of the units.
The property includes a fully approved “permit-ready” phase II, allowing for the construction of an additional six cottages. Developing phase II has the potential to yield an additional $400,000 in annual revenue. The Cottages at Alex Patterson Place offer a rare opportunity to invest in one of east coast’s most iconic coastal towns with guaranteed performance in the near term and substantial upside potential through phase II development.
Class-A SFR Product in High Barrier-to-Entry Market
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OFFERING SUMMARY
Property Info
Investment Highlights
Executive Summary
Document Center
Contact
Photo Gallery
Privacy
Terms of Use
Location
Risk Mitigation Rent Escalations Utility Caps
Leases provide for significant risk mitigation from corporate guarantees including reimbursements for repairs and maintenance, as well as tenant remitment for utilities in excess of monthly utility caps. Leases include the following contractual annual rent increases: Marriott Vacation Club 3.0%; Omni 2.0%; Westin the greater of CPI increases or 3.0%. Leases provide monthly utility "caps" with tenant reimburses above the cap as follows: water/sewer $75 per unit per month; electric $300 per unit per month; cable/internet $100 per unit per month.
City, State Project Type Units FF & E Phase I Beds Phase II Beds Total Beds Gross SF/Home Net Rentable SF/Home Land Size
Hilton Head Island, SC BTR - Single Family Rental Community 14 Single Family Homes comprised of 4 Bedroom / 4 Bathrooms floor plans Fully furnished homes with double occupancy 112 48 160 2,166 1,715 3.69 Acres
PROPERTY INFORMATION
120 Alex Patterson Road
KITCHEN SPECIFICATIONS
Investment Highlights
The Cottages at Alex Patterson Place offers guaranteed 100% occupancy and stable 2.5% year-over-year minimum rent growth through long term master leases with three credit tenants.
Master Lease Terms
Alex Patterson Place is 100% master leased to three credit tenants with entity level guarantees. Each lease is for an initial 5-year term with lease extension options extending maturity to as late as March 2032.
High Credit Tenants
The tenants under master lease at Alex Patterson Place include: The Omni Hilton Head Oceanfront Resort, The Westin Hilton Head Island Resort and Spa, and Marriott Vacation Club. These hotel chains have leased Alex Patterson Place since 2021 as a means to provide affordable housing to local and seasonal employees. The in-place master leases provide significant risk mitigation from corporate guarantees including reimbursements for repairs and maintenance, as well as tenant remitment for utilities in excess of monthly utility caps.
MASTER LEASES ENSURE STABLE RENT GROWTH AND GUARANTEED OCCUPANCY
The Cottages at Alex Patterson Place include a fully approved permit-ready phase II allowing for the construction of six additional cottages totaling 48 beds consisting of identical four-bedroom/four-bathroom single family cottage homes. New ownership is well-positioned to capitalize on nearly $400,000 of additional annual revenue through the development of six additional cottages.
Fully Approved Permit-Ready Phase II
05
Increased Renter Demand for BTR / SFR Product
04
Over the last 6 months, the average sales price of comparable homes on island was north of $660,000. The acquisition of Alex Patterson Place represents a unique opportunity to acquire like-kind rental product at a steep discount to its for-sale counterparts. Pricing guidance of the subject property sits at a near 10% discount from the average retail price.
Discount to Proximate For-Sale Comps
03
Alex Patterson Place is ideally located within two minutes from US Route 278, which is the only major road on the island. US Route 278 provides access on and off the island, as well as a convenient commute to Hilton Head’s top amenities.
Situated less than a 5-minute commute to the nearest beach, The Cottages at Alex Patterson Place offer immediate access to the island’s top lifestyle amenities, as well as an abundance of job opportunities at the surrounding resorts and hospitality venues. The property also sits 5 minutes from Main Street Village and 15 minutes from Coligny Plaza Shopping Center which provide seamless connectivity to HHI’s top retail, dining, and entertainment hubs.
Immediate Access to Hilton Head Island’s Top Amenities
02
Due to lack of supply in the housing market and an increased mortgage rate environment, average Americans are continuing to be priced out of the homebuying market. The gap between monthly mortgage payments and rent continues to widen, with Forbes reporting that the cost of purchasing a new home now exceeds average rent payments by 52%. Despite this, consumer demand for high-quality, spacious homes remains strong. Alex Patterson Place offers new ownership the opportunity to provide best-in-class housing to a growing community of renters seeking premium living options as homeownership becomes increasingly out of reach.
Spacious Open Floor Plans
Beautifully Appointed with Stainless Steel Appliances, Wood-Style Flooring, Shaker-Style Cabinetry, Granite-Style Countertops, Lighted Ceiling Fans, Recessed Lighting, and Mini Blinds
Modern Kitchen with Electric Stove, Smooth-Top Range, Refrigerator, Dishwasher, Built-In Microwave, Undermount Sink, Dining Area, and Plenty of Cabinet and Counter Space
Walk-In Closets
Full Size Bathrooms with Tub and Shower Combination
Bed-Bath Parity with all cottages having 4 bedrooms / 4 bathrooms
French Windows Allowing in Abundant Natural Light
Private Entry with Large, Covered Front Porch
Private Back Deck with Sliding Glass Doors
In-Unit Washer and Dryer
Air Conditioning / Heating, Cable Ready, and High-Speed Internet Access
Fully Furnished SF Cottages
Unit Amenities
Located in a Wooded Residential Area on Hilton Head Island – Popular Vacation Destination
Minutes from Coastal Beaches
Convenient, On-Site Parking
Beautifully Landscaped with Mature Trees, Trimmed Shrubs, and Tropical Plants
Bicycle Racks
Close to Parks, Lakes, Golf Courses, Beach Resorts, Schools, Stores, Restaurants, and Entertainment Options
Convenient Access to U.S. Highway 278 and Hilton Head Island Airport
Community Amenities
AMENITIES
Overview Phase II Fully Approved
Year Built
Unit Description
The Cottages at Alex Patterson Place is a "BTR" single-family rental community located on Hilton Head Island, SC. The site totals 3.69 acres with an existing 14 Cottage Homes (totaling 112 beds). Each home is four-bedroom/four-bathroom with 2,160 Gross SF and 1,715 Rentable SF. There is an approved. Permit-Ready Phase II to be constructed adding 6 Cottage Homes (48 additional Beds). Phase I & II combined totals 20 Single Family Homes with 160 beds The property includes a fully approved "permit-ready" Phase II allowing for the construction of an additional 6 cottages totaling 48 Beds consisting of identical four-bedroom/four-bathroom single family cottage homes 2018 - 2020. The existing Phase I units are recent vintage delivered between 2018 and 2020. Years (6 homes 2018; 6 homes 2019; 2 homes 2020). Each home offers large living area with 1,715 Rentable SF and gross area of 2,160 SF per unit. All units provide bed-bath parity. Interior finishes include granite counters in kitchen and bathrooms, VCT flooring throughout each home, stainless steel appliances, full size washers and dryers, walk-in closets in each bedroom, covered patio, rear deck, and ensuite bathrooms in each bedroom.
Unit Description Credit Leases Lease Terms
Credit Tenants
Units are leased fully furnished. Each bedroom is equipped for double occupancy allowing for 8 residents (beds) per cottage. Alex Patterson Place is 100% master leased to three credit tenants with entity level guarantees. Each lease is for an initial 5 year term with lease extension options extending maturity to as late as March 2032. Lease expirations including option periods as follows: 7 master leases totaling 56 beds with base term of December 31, 2026 and option extending to December 31, 2031. 7 master leases totaling 56 beds with base term of to March 31, 2027 and option extending to March 31, 2032. The tenants under master lease at Alex Patterson Place include 1. The Omni Hilton Head Oceanfront Resort (7 homes/56 beds); 2. The Westin Hilton Head Island Resort and Spa (5 homes/40 beds); 3. Marriott Vacation Club (2 homes/16 beds).
774 S Shelmore Blvd Suite 105 Mt Pleasant, SC 29464
CHARLESTON OFFICE
355 S. Main Street 1st and 2nd Floor Greenville, SC 29601
GREENVILLE OFFICE
3700 Computer Drive Suite 315 Raleigh, NC 27609
RALEIGH OFFICE
ERIKA MASTON
Managing Director 843.806.4394 erika.maston@Berkadia.com
CALEB TROOP
Senior Managing Director 314.607.3481 caleb.troop@berkadia.com
JOSH FINLEY
Director 404.654.2594 josh.finley@berkadia.com
ADAM ERICKSON
Associate Director 404.654.2596 adam.erickson@berkadia.com
JIM SEWELL
Senior Managing Director 843.806.4400 jim.sewell@Berkadia.com
CHRISTIAN DICROCE
Director 843.972.7478 christian.dicroce@Berkadia.com
THE COTTAGES AT ALEX PATTERSON PLACE
THE COTTAGES AT ALEX PATTERSON PLACE
THE COTTAGES AT ALEX PATTERSON PLACE
THE COTTAGES AT ALEX PATTERSON PLACE
Homes at Olive Shell* Old Stoney Village 43 Old Stoney Ln 41 Old Stoney Ln 8 Old Stoney Ln 36 Carnoustie Ct 61 Victoria Square Dr 14 Victoria Square Crossing 3 Gold Oak Ct 85 Victoria Square Dr *Nearby luxury TH community
Hilton Head Hilton Head Hilton Head Hilton Head Hilton Head Hilton Head Hilton Head Hilton Head Hilton Head
1,970 1,874 1,975 1,874 1,870 2,316 1,932 1,947 2,338 1,887
$750,000 $725,000 $739,900 $737,287 $598,000 $725,000 $635,000 $580,000 $629,000 $629,000 $674,819
Sold & On-Market On-Market Sold Sold Sold Sold Sold Sold Sold Sold
City
BD/BA
SF
Property
List Price/U
List Price/SF
Status
Sale Date
For-Sale Retail Comps | Hilton Head Island
4/4 4/4 4/4 4/4 4/4 4/4 4/4 4/4 4/4
$381 $387 $375 $393 $320 $313 $329 $298 $269 $333 $340
- - 12/26/24 11/25/24 12/17/24 10/30/24 10/29/24 8/22/24 8/9/24 11/8/24
Significant Renting vs. Mortgage Cost Gap in Hilton Head
*Assumes 5% down at $666k sale price, 7.05% 30-YR fixed mortgage, and 75% PP tax value
Tenant Tenant Tenant Tenant Tenant Tenant Total Phase II
Total Phase I & II
4 Bed / 4 Bath 4 Bed / 4 Bath 4 Bed / 4 Bath 4 Bed / 4 Bath 4 Bed / 4 Bath 4 Bed / 4 Bath
8 8 8 8 8 8 48
160
110 112 114 118 122 124 6
6
1,715 1,715 1,715 1,715 1,715 1,715 10,290
34,300
2,160 2,160 2,160 2,160 2,160 2,160 12,960
43,200
$64,800 $64,800 $64,800 $64,800 $64,800 $64,800 $388,800 $1,152,164
$5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400
$16,002
$675 $675 $675 $675 $675 $675 $675
$600
Home #
Unit Type
Beds
RSF
GSF
Annual Rent
Rent per Unit
Rent per Bed
Tenant
Phase II Proforma
$3.15 $3.15 $3.15 $3.15 $3.15 $3.15 $3.15
$2.80
Rent / RSF
$2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50
$2.22
Rent / GSF
Proforma In & Expense Inclusive of Phase II
Property Revenue Rental Revenue - Phase I Rental Revenue - Phase II Total Revenue
Tenant Reimbursements - Phase I Tenant Reimbursements - Phase II Total Tenant Reimbursements
Revenue Collections
Property Operating Expense Repairs & Maintenance HVAC Maintenance Landscaping Pest Control Insurance - Property Insurance - GL Insurance - Umbrella Real Estate Tax Personal Property Tax Electricity Water and Sewer Cable/Internet Trash Disposal Bank Fees Administrative & Accounting Management Fees Total Property Expenses
Net Operating Income
Year 1
Year 2
Year 3
Year 4
Year 5
$763,364 $0 $763,364
$14,952 $0 $14,952
$778,316
$11,008 $2,100 $9,495 $3,990 $54,284 $1,253 $2,318 $100,644 $625 $26,848 $11,233 $9,700 $7,843 $740 $14,690 $25,200 $281,971
$496,345
$782,605 $388,800 $1,171,405
$15,401 $6,408 $21,809
$1,193,213
$15,946 $3,000 $9,495 $5,700 $77,548 $1,789 $3,311 $131,243 $4,036 $38,892 $16,272 $13,858 $11,204 $1,057 $15,328 $36,000 $384,680
$808,533
$802,350 $400,464 $1,202,814
$15,863 $6,600 $22,463
$1,225,277
$16,265 $3,000 $9,495 $5,700 $77,548 $1,789 $3,311 $131,243 $3,354 $39,670 $16,597 $13,858 $11,204 $1,057 $15,328 $36,000 $385,420
$839,856
$822,612 $412,478 $1,235,090
$16,338 $6,798 $23,137
$1,258,227
$16,591 $3,000 $9,495 $5,700 $77,548 $1,789 $3,311 $131,243 $2,808 $40,463 $16,929 $13,858 $11,204 $1,057 $15,328 $36,000 $386,325
$871,902
$843,407 $424,852 $1,268,259
$16,829 $7,002 $23,831
$1,292,090
$16,923 $3,000 $9,495 $5,700 $77,548 $1,789 $3,311 $131,243 $2,371 $41,272 $17,268 $13,858 $11,204 $1,057 $15,328 $36,000 $387,368
$904,721
ALEX PATTERSON PLACE SITE PLAN
Master Leases Ensure Steady Rent Growth
Master Lease Summary
Westin Marriott Omni
12/31/2026 3/31/2027 3/31/2027
5 5 5
5 2 7
12/31/31 3/31/32 3/31/32
$4,787 $4,590 $4,351
$598 $574 $545
Number of Units
Lease End Date
Option Years
Extension Lease End Date
Lease Rent Per Unit (YR1)
Lease Rent Per Bed (YR 1)
Merrill Villas Hidden Pines
Briarfield The Parks of Carolina Forest Ridgefield Total / Wtd. Avg.
Hilton Head Hilton Head Hilton Head Hilton Head Hilton Head Hilton Head Hilton Head Hilton Head Hilton Head
4/4 4/4 4/4 4/4 4/4 4/4 4/4 4/4 4/4
Old Stoney Village 43 Old Stoney Ln 41 Old Stoney Ln 8 Old Stoney Ln 36 Carnoustie Ct 61 Victoria Square Dr 14 Victoria Square Crossing 3 Gold Oak Ct 85 Victoria Square Dr
1,874 1,975 1,874 1,870 2,316 1,932 1,947 2,338 1,887
$725,000 $739,900 $737,287 $598,000 $725,000 $635,000 $580,000 $629,000 $629,000 $666,465
$387 $375 $393 $320 $313 $329 $298 $269 $333 $335
On-Market Sold Sold Sold Sold Sold Sold Sold Sold
- 12/26/24 11/25/24 12/17/24 10/30/24 10/29/24 8/22/24 8/9/24 11/8/24
Address
City
BD/BA
SF
List Price/U
List Price/SF
Status
Sale Date
Property
Phase II Proforma
Tenant Tenant Tenant Tenant Tenant Tenant Total Phase II
Total Phase I & II
4 Bed / 4 Bath 4 Bed / 4 Bath 4 Bed / 4 Bath 4 Bed / 4 Bath 4 Bed / 4 Bath 4 Bed / 4 Bath
8 8 8 8 8 8 48
160
110 112 114 118 122 124 6
6
1,715 1,715 1,715 1,715 1,715 1,715 10,290
34,300
2,160 2,160 2,160 2,160 2,160 2,160 12,960
43,200
Home #
Unit Type
Beds
RSF
GSF
Master Lease Summary
Westin Marriott Omni
12/31/2026 3/31/2027 3/31/2027
5 5 5
5 2 7
$4,787 $4,590 $4,357
$598 $574 $545
3.0% 3.0% 2.0%
Number of Units
Lease End Date
Option Years
Lease Rent Per Unit (YR1)
Lease Rent Per Bed (YR 1)
Minimum Rent Growth YoY
home
Highlights
the hotel
location
Gallery
document center
contact
privacy
terms of use
3.0% 3.0% 2.0%
Minimum Rent Growth YoY
Attainable Workforce Housing in Rental Constrained Market
Hilton Head Island hosts 21,000+ workforce jobs across industries such as hospitality and food service, retail, administration, health care, social work, and more. However, nearly 14,000 employees commute onto the island each day for work. According to HHI’s Workforce Housing Framework Study, of the 34,000 housing units on the island, nearly a third of them are categorized as short-term rentals. This staggering lack of supply has driven effective rents on the island up over 50% in the last five years.
Demand for on-island workforce housing is at an all-time high. The Cottages at Alex Patterson Place is well-positioned to capitalize on the shortage through continued master leases with the HHI’s major employers.
04
* Average rent growth reflects the scheduled rent increases remaining through the extension periods *Westin annual rent increase is the greater of CPI or 3%
Potential for Phase II | +$395k in Additional Revenue
The Cottages at Alex Patterson Place include a fully approved permit-ready phase II allowing for the construction of six additional cottages totaling 48 beds consisting of identical four-bedroom/four-bathroom single family cottage homes. New ownership is well-positioned to capitalize on nearly $400,000 of additional annual revenue through the development of six additional cottages.
Fully Approved Permit-Ready Phase II
05
$412,478 $6,798 $419,276
$5,808 $1,710 $24,795 $30,599 $16,980 $4,157 $3,361 $3,139 $10,800 $101,349
$317,927
$424,852 $7,002 $431,854
$5,907 $1,710 $24,795 $30,599 $17,320 $4,157 $3,361 $2,702 $10,800 $101,350
$330,504
YEAR 4
YEAR 5
ALEX PATTERSON PLACE SITE PLAN
Phase II Proforma Income & Expense
Property Revenue Rental Revenue Tenant Reimbursements Total Revenue
Property Operating Expense Repairs & Maintenance Pest Control Insurance Real Estate Tax Utilities Cable/Internet Trash Disposal Administrative Management Fees Total Property Expenses
Net Operating Income
$388,800 $6,408 $395,208
$5,618 $1,710 $24,795 $30,599 $16,321 $4,157 $3,361 $4,366 $10,800 $101,727
$293,481
$400,464 $6,600 $407,064
$5,712 $1,710 $24,795 $30,599 $16,647 $4,157 $3,361 $3,684 $10,800 $101,466
$305,599
$0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0
$412,478 $6,798 $419,276
$5,808 $1,710 $24,795 $30,599 $16,980 $4,157 $3,361 $3,139 $10,800 $101,349
$317,927
YEAR 1
YEAR 2
YEAR 3
YEAR 1
Beds
Tenant Tenant Tenant Tenant Tenant Tenant Total Phase II
Total Phase I & I
4 Bed / 4 Bath 4 Bed / 4 Bath 4 Bed / 4 Bath 4 Bed / 4 Bath 4 Bed / 4 Bath 4 Bed / 4 Bath
8 8 8 8 8 8 48
160
110 112 114 118 122 124 6
6
1,715 1,715 1,715 1,715 1,715 1,715 10,290
34,300
Home #
Tenant
Unit Type
Beds
RSF
Rent/rsf
$3.15 $3.15 $3.15 $3.15 $3.15 $3.15 $3.15
$2.80
4/30/26
4/30/27
4/30/28
4/30/29
4/30/30
YEAR 1
4/30/26
4/30/26
YEAR 4
4/30/29