Edgecamp Pamlico Station | North Carolina
The latest extension for the broader Edgecamp Sporting Club in the Outer Banks, Pamlico Station, is a unique acquisition we think is indicative of our differentiated approach to the short-term rental space. For this short-term rental conversion, we used our vision to identify a mispriced asset and arbitrage opportunity.
The property languished on the market due to a lack of vision by other investors - instead of a struggling roadside two-story retail property; we saw the opportunity to create 1-bedroom short-term rentals on the island where there is limited lodging for smaller parties (most properties are 3-5 bedroom homes). Our analysis showed this asset was mispriced based on the highest and best use, in this case, 14 short-term rental units.
One challenge, local regulations prevented a short-term rental use case in the pre-existing zoning. To overcome this, we leveraged our network of local experts to work directly with the county to reclassify the asset’s zoning and concurrently rewrite the zoning code to include our short-term rental operating model. With the new regulation in place, we were able to move forward with redevelopment plans.
On top of that, we identified an opportunity to add much-needed workforce housing units to the rear of the property. As with many vacation destinations, workforce housing is a challenge on Hatteras Island, as many lower-income households have been priced out of the island and must commute from the mainland. Again, by working with the county, we are very proud to be the first developer to have received approval to build higher-density workforce housing units under a newly launched ordinance. These additional units will house our hard-working team, employees, and vendors, as well as support the community at large. We firmly believe we have a responsibility as developers to not only enhance our LP’s wealth but also the community at large.
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