HomeMy WebLinkAboutUPDATED - Sand Mine Effects on Property Values - 10-22-2018Proposed Sand Mine
What impact does the presence of an active sand mine have
on home valuesin the adjacent neighborhoods?
4117 CastleHayneRoad
Castle Hayne, NC28429
Prepared For:
Stephen D. Coggins
Prepared By:
Trevor Tarleton & F. Blynn Beall
Streamline Evaluation Services
2513 N. Oak Street Suite 305, Myrtle Beach, SC 29577
T:843.808.9716 W: www.streamlineevaluation.com
Proposed Sand MinePage 2
EXECUTIVE SUMMARY
Purpose
Streamline Evaluation Services hasbeen retained by Stephen D. Coggins(intended user) to perform ananalysis in
order to determine the impact an active sand mine will have on single-family residential property valueswithin a
close proximity to the mining operations(intended use).
Scope of Work Performed
The scope of the study included:locating sand mines in close proximity to residential developments, analyzing
changes in home values as a reaction to active sand mining, thenprovidingconclusions about the potential
economic impact on home values from sand mining operations.
Methodology
Numerous sand mine locations were scrutinized to determine the best areas for comparison.Searchcriteria
included locating active sand mines within close proximity to single-family housing developments and then
selecting similar housing developmentsnearbythat would not be impacted by the miningoperations (noise,
traffic, etc.).Although sand mines were located within New HanoverCounty, none were found from an inspection
of aerial imagery which matched the criteria of being in close proximity to a single-family residential development
to the point where operations could impact residents. Also, based on inspection of aerial imagery, no sand mines
were located within Brunswick County west of US Highway 17 (Ocean Highway) in close proximity to residential
developmentsconsidered comparable.We then searched within Horry County, SC and found mines which
matched our search criteria. A comparison was then made to determine if the average sale prices within each
neighborhoodadjacent to each minegrew at a consistent rate with comparative neighborhoodsand also in
comparison to the overall market in Horry County during similar timeframes.The information was then tabledand
graphed to analyze and interpret the results.
Summary of Findings
Three sand mines in Horry County met the criterianecessary for this report: active mining dates verifiable by aerial
photos,sand mineslocated within close proximity to established single-familysubdivisions,and mines with an
ingress/egressroad that borders single-family homes in asubdivision. For the purpose of this report the sand
mines are identified as: Blackmoor, Forestbrook and Cottonpatch.Afterour analysis,it was determined that each
sample subdivision grew at a similar rate to the overall market during periods of active mining and there appeared
to be nosignificant economic impacts to home values as result of having an active sand mine in close proximityto
each of the three neighborhoods analyzed.
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GENERAL ANALYSIS
Comparable Market Selection
The difficulty of locating comparablesand mining information in New Hanover Countyresulted in a modification of
search parameters to include searches of surrounding counties. Brunswick County, to the south, was first
researched for sand mines in coastal markets with similar elements of comparison. After no comparable mines
were identified east of US Highway17, the search extended southward into South Carolina. Publicly available data
for permitted sand minesin South Carolinawas easyto navigateand a search of Horry County identified multiple
sand mines in close proximity to residential development. As information was readily available, weselected the
Grand Strandmarket area. Sand mines located in Horry County, SC were utilized for this report dueto the
similarity of the geography and economic conditions. Both counties are in a period of growth with demand for
sand to be used for construction of roads and site work.
The Grand Strand is comprised of approximately 60 miles of coastline stretching from southern Brunswick County,
North Carolina south to Georgetown County, South Carolina, with the majority of the Grand Strand located in
Horry County. The sand mine which is the subject of this report is located north of the Grand Strand in the
Wilmington market, which is considered to have similar elements of comparability to the Grand Strand. Both
markets areocean-fronting and both have a stable population base which benefits from both tourism and retirees
relocating from other markets. Both markets have higher-education facilities and both are experiencing residential
and commercial growth. Both markets haveports for shipping, although the Georgetown Port is far less active than
the Wilmington Port. As such, the Grand Strand was determined to be a reasonable area for comparison.
Comparable Mine & Subdivision Selection
Numerous mining locations are located in Horry
County. TheonlineSC Active Mines application,
provided by DHEC, showsthe locations of active
permitted mining operationsin South Carolina
andaidedouridentificationofsand mines
(shown on the map at right).
While there are instances of individual
residences in close proximity to mines that have
sold in recent years, a sale of the property in a
period before the mine was active would need
to be compared to a second sale of the same
property during an active period of mining. A
paired-sale comparisonsuch as this would be
reliable if the residential improvements were
maintained at a reasonable standard and both
the originaland second transaction would need
to be arm’s length sales. Due to the difficulty in
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finding properties with suchstrict criteria,we focused on established single-family residential developments in
close proximity to sand mines. This would ensure more sales activity each periodcould beanalyzed and also give
insight to the purchasing preferences of a larger sample size.
Although many sand mines were located, most didn’t meet the parameters required to be considered for
comparison(active mining dates verifiable by aerial photos, located within close proximity to anestablished single-
family subdivision with a comparable subdivision in the immediate proximity that wasn’t affected by sand mining
operations, and mines withan ingress/egress road that bordered single family homes in the subdivision). For each
subdivision selected in close proximity to the sand mine, called ‘sample subdivisions,’ one or more nearby
subdivisions were also selected for comparison, called the ‘comparative subdivisions,’ which were selected due
to their proximity outside of an area impacted/affected by the traffic, noise and/or potential dust created from
mining operations.
Although sand mines were located within New Hanover County, none were found from an inspection of aerial
imagery which matched the criteria of being in close proximity to an establishedsingle-family residential
development to the point where operations could impact residents. Also, based on inspection of aerial imagery, no
sand mines were located within Brunswick County west of US Highway 17 (Ocean Highway) in close proximity to
residential developmentsconsidered comparable.As such, we searched within Horry County, SC. Three sand mines
in Horry County met the criteria necessary to be sample subdivisions, which are discussed in more detail in this
report.
The two best methods to determine if sand mines impacted sales prices wereto:(1) compare the yearly average
sales price rates between the sample subdivisions and the comparative subdivisions within similar timeframes, and
(2) compare the growth rates of the average sale price within the sample subdivision in comparison to average
salesrates within the overall area (Horry County) during a similar timeframe. Althoughthe price per square foot
and the average sale price were both considered, the average sale price was considered to be a more reliable unit
for comparison.
Information on subdivisionsbordering sand mines and comparable neighborhoods not affected by sand mining
werederived fromsearch optimization programs provided bythe Coastal Carolinas Association of REALTORS®
Multiple Listing Service(MLS). Parameters of the searches included:yearlyhome salesclosedfrom January 1,
2009, to YTD 2018 (August 24, 2018) for each sample subdivision, comparative subdivisionand Horry County.Only
detached single-family residences were includedwitha minimumof onebedroom and bathroom count,as a
precaution,in case a property had been included in the wrong category.In some situations, outliers (homes that
were not standard in the subdivision) were excluded. Tosimplify the interpretation of this report,the sample
subdivisions and their comparative subdivisions were broken out into three separate identities: Blackmoor,
Forestbrook and Cottonpatch.These three mines, the sample subdivisions and the comparative subdivisions are
analyzedon the following pages.
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Blackmoor
The Blackmoor Sand Mine(shown in yellow)borders the Blackmoor Golf Course community(sample subdivision
shown in red). The area ofthe mine outlined in the graphics below measures 48± acres. Access to the sand mine is
provided viaa private road (shown in yellow) that borders the Blackmoor Golf Coursecommunityand is accessed
from SC Highway 707. The blue area designates the International Club of Myrtle Beach(comparative subdivision
shown in blue), a golf community similar to Blackmoor.Active sand mining began between10/2014 and 3/2015
and became inactive around11/2017.The photos below the map showboththe location of the sand miningprior
to the mining operation and the most recent aerial imagery available.
10/2014 –3/2015 11/2017
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The following chart and graph show the changes in average home values from 01/01/2009 through 8/23/2018.
Theycontain information on thesamplesubdivision adjacent to the sand mine (Blackmoor), the comparative
subdivision (International Club),and the baseline (Horry CountySingle-Family Homes).Active mining periods are
highlighted in yellow and the 2018 sample size is highlightedin reddue to it onlyextending from 01/01/2018
through 08/23/2018.
After plotting the average sales prices within the sample subdivision, Blackmoor, and the comparative subdivision,
International Club, the dataappeared to trend similarly over a longer timeframe. While the average sales price of
International Club dropped in 2011, by 2012 ithad increased above the Horry County average. This is likely due to
the price points of the product available for sale within specific sections of the overall development of
International Club. By the time period of the active mining, the sample subdivision and comparative subdivision do
not appear to vary greatly from the trend of the overall County sales.Although the sample average dropped in
2016 and the comparative dropped in 2017, they both recovered and resumed trending with Horry County by
2018.Based on the graph above, the growthof the average sale prices between the two subdivisions is relatively
consistent withthe exception of 2011and 2016. Theoverall growth rate of Blackmoor slightly surpassed the
growth rate of International Club during the mining periods of 2014-2017at107% to 105%, respectively.
Year Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales
2009 $284,144 ---9 $226,570 ---18 $224,554 ---2,707
2010 $261,319 -8%21 $208,090 -8%21 $211,682 -6%3,050
2011 $274,309 5%11 $182,237 -12%19 $211,176 0%3,237
2012 $264,705 -4%26 $214,284 18%30 $197,304 -7%3,840
2013 $266,030 1%13 $235,666 10%77 $206,321 5%4,649
2014 $274,188 3%16 $241,798 3%66 $217,631 5%5,143
2015 $294,941 8%17 $255,630 6%77 $229,367 5%5,955
2016 $275,557 -7%22 $261,994 2%84 $238,959 4%6,392
2017 $293,389 6%18 $253,716 -3%36 $249,961 5%6,981
2018 $319,326 9%9 $278,130 10%21 $259,596 4%4,722
%∆ 2011 - 2018 116%162 153%449 123%46,676
%∆ During Mining 107%73 105%263 115%24,471
Blackmoor International Club Horry County
ACTIVE MINING PERIOD
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Forestbrook
The ForestbrookSand Mine (shown in yellow) borders Hunters Ridge community on the western side of Panther
Parkway(sample subdivision shown in Red). The area of the mine outlined in the graphics below measures 80±
acres. Ingress and egress utilize a private road (shown in yellow) that connects withSun Light Driveto the west.
The blue area designates theSteeple Chase Subdivision(comparative subdivision shown in blue).Aerial
photographs show active sand mining began between 02/2014 and 10/2014and was still active in the latest photo,
11/2017. Although the access road does not border the single-family development, this mine was selected due to
the adjacent mining operations to the residences.
2/2014 –10/2014 11/2017
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The following chart and graph show the changes in average home values from 01/01/2009 through 8/23/2018.
Theycontain information on the sample subdivision adjacent to the sand mine (Hunters Ridge -westof Panther
Parkway), the comparativesubdivision (Steeple Chase), and the baseline (Horry County Single-Family Homes). As
the size and style of homes east of Panther Parkway were considered superior, only homes west of Panther
Parkway were included in this analysis. Active mining periods are highlighted in yellow and the 2018 sample size is
highlighted in reddue to it only extending from 01/01/2018 through 08/23/2018.
After plotting the average sales prices within the sample subdivision, Hunters Ridge west of Panther Run, and the
comparative subdivisionofSteeple Chase,the data appeared to trend similarly over a longer timeframe. With the
exception of Steeple Chasein2012, the average sales prices of the sample and comparative subdivisions remained
lower than Horry County averages.This is due to the price points of the productsavailable for sale withinthe
specified subdivisions.Duringthe first four years of the active mining, the sample subdivision doesnot appear to
vary greatly from the trend of the overall County sales.Hunters Ridge sales average dropped slightly in 2016 when
compared to the County average, but reboundedin 2017.Also, the growth of the average sale prices between
2009 and 2018 show the sample subdivision grew faster than thecomparative subdivisionand Horry County.The
comparative subdivision’s average sales wererelatively consistent with the exception of two single-year
fluctuations.
Year Avg. Sales Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales
2009 $144,877 ---9 $166,767 ---9 $224,554 ---2,707
2010 $138,991 -4%19 $161,057 -3%7 $211,682 -6%3,050
2011 $123,478 -11%14 $148,700 -8%4 $211,176 0%3,237
2012 $133,147 8%20 $179,600 21%5 $197,304 -7%3,840
2013 $137,239 3%19 $164,031 -9%5 $206,321 5%4,649
2014 $145,710 6%21 $188,800 15%9 $217,631 5%5,143
2015 $158,125 9%24 $194,257 3%7 $229,367 5%5,955
2016 $157,165 -1%28 $203,036 5%11 $238,959 4%6,392
2017 $179,445 14%33 $193,225 -5%4 $249,961 5%6,981
2018 $172,931 -4%13 $204,750 6%2 $259,596 4%4,722
%∆ 2009 - 2018 126%200 125%63 116%46,676
%∆ During Mining 119%119 108%33 119%29,193
Hunters Ridge W of Panther Parkway Steeple Chase Horry County
ACTIVE MINING PERIOD
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Cottonpatch
The CottonpatchSand Mine (shown in yellow) borders the Waterfordcommunity (sample subdivision shown in
red). The area of the mine outlined in the graphicsbelow measures 13± acres. Access is provided viaa private road
(shown in yellow) that connects to Gardner Lacy Road. Spring Lakesubdivision (comparative subdivision shown in
blue) and Covington Lake subdivision(comparative subdivision shown in gold)were selected due to their close
proximity and lack of impact from mining operations.Aerial photographs show active sand mining began between
02/2014 and 10/2014 andbeinginactive in the latest photo, 11/2017.
2/2014 –10/2014 11/2017
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The following chart and graph show the changes in average home values from 01/01/2009 through 8/23/2018.
They contain information on the sample subdivision adjacent to the sand mine (Waterford), the comparable
subdivisions(Spring Lake & Covington Lake) and the baseline (Horry County Single-Family Homes). Active mining
periods are highlighted in yellow and the 2018 sample size is highlightedin reddue to it only extending from
01/01/2018 through 08/23/2018.
After plotting the average sales prices within the sample subdivision, Waterford, and the comparative subdivisions,
Spring Lake and Covington Lake, the data appeared to trend similarly over a longer timeframe. While the average
sales pricesof the comparative Spring Lakesubdivision remainedlower than Horry County averages, they trended
very well with Horry County. Sales averages in the sample subdivision (Waterford) showed substantial increases in
average sales prices during the first year of mining in 2011 and in yearsof active mining 2014-2016. Sales averages
for Waterford dropped in 2012 but increased continuously for the next four years. Duringthe time period of the
active mining,thecomparative subdivisionsdo not appear to vary greatly from the trend of the overall County
sales.
Year Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales
2009 $261,291 ---22 $212,677 ---1 $318,000 ---15 $224,554 ---2,707
2010 $243,267 -7%18 $188,513 -11%1 $318,000 0%16 $211,682 -6%3,050
2011 $267,577 10%22 $172,721 -8%5 $289,700 -9%14 $211,176 0%3,237
2012 $230,004 -14%23 $168,130 -3%6 $285,917 -1%15 $197,304 -7%3,840
2013 $233,805 2%33 $187,483 12%12 $287,895 1%16 $206,321 5%4,649
2014 $269,770 15%24 $204,395 9%7 $291,783 1%20 $217,631 5%5,143
2015 $284,490 5%52 $208,207 2%12 $295,025 1%22 $229,367 5%5,955
2016 $290,218 2%41 $226,303 9%35 $307,618 4%26 $238,959 4%6,392
2017 $285,117 -2%41 $231,705 2%18 $315,941 3%21 $249,961 5%6,981
2018 $310,719 9%23 $233,416 1%6 $310,667 -2%12 $259,596 4%4,722
%∆ 2009 - 2018 133%299 124%103 108%177 116%46,676
%∆ During Mining 116%195 135%77 107%113 123%29,216
Cottonpatch
Waterford Spring Lake Covington Lake Horry County
ACTIVE MINING PERIOD
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CumulativeAverages Trend
The following chart shows three trend lines that represent each of the different criteria:sample subdivisions,
comparative subdivisions, and Horry Countyaverage home prices.The sample subdivisions redline consists of the
yearlyhome sales priceaverages of all three subdivisions: Blackmoor, Forestbrook and Cottonpatch.The
comparative subdivisions blue line represents: The International Club, Steeple Chase, Spring Lakeand Covington
Lake. The green line represents Horry County and is considered the baseline for changes in average yearly sales
prices.
The best method to determine if sand mines impacted sales prices was to compare the yearly average sales prices
of the sample subdivisionsin comparison tothe comparative subdivisionsandalso compare them to the overall
area (Horry County).The chart below shows side-by-side comparisonsand trends in yearly changes fortotal
cumulative average salesprices.Duringthe time periods ofactive sand mining,the sample subdivisionstrended
similarly to the comparative subdivisions and Horry County home averages.
Conclusion
Sales prices in individual neighborhoods may vary over time for a variety of factors, including but not limited to;
market demand, available supply, cost of construction/materials, availability of financing, etc. Many factors were
considered while analyzing each subdivision to gauge if the changes in sales prices over time were attributable
primarily to the market or outside influences.The general trend of each sample and comparative neighborhood
appears to closely trend with the real estate market during each respective timeframe.This inferred analysis places
an emphasis on historical sales data which is quantifiable. After our analysis, it was determined that there were no
significant economic impacts to home values as result of an active sand mine in close proximity to each
neighborhood.
Additional data is presented in the attachments thatanalyzes the sample and comparative subdivisionspreviously
discussed with the exclusion of new-construction sales. This data is contrasted to the data sets previously
presented. This data also supports little-to-no impact on the average sale prices as a result of proximity to the sand
mines.
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About Us
Streamline Evaluation Services LLC, provides credible real estate solutions by synergizing technology and industry
professionals. Streamline collects information, analyzes the data, and generates high-quality streamlined products
utilizing the most recent market information available through paid and public records. This way their clients can
make timely, informed and educated strategic decisions. Our reports are easy to read, accurate, compliant, and
customized to each clients’ requirements. Streamline Evaluation Services boasts timely turnaround of reports to
meet deadlineswith dedicated and accessible analysts, as well as an internal quality review process and approval
before transmittal.
From automated appraisals to in-depth evaluations,analyses, assessments and studies, Streamline Evaluation
Services provides full-service solutions for a wide spectrum of property types. We work with financial institutions
to ensure that their internal requirements are met, while also maintaining compliance with the Uniform Standards
of Professional Appraisal Practice, federal regulation 12 CFR Part 34 (Title XI of FIRREA) and standards endorsed by
the Appraisal Institute and other professional organizations.
Our review process ensures that each report offers supportable opinions as to value and then offering conclusions
and/or recommendations to the client. This process guarantees that the appraisal contains adequate, relevant and
meaningful discussion, analysis and rationale so that it can be readily understood to lead to a credible value
conclusion, and contains sufficient supporting documentation to indicate the reasonableness of the conclusion.
Trevor Tarleton, M.B.A.is Real Estate Research/Market Analyst at Streamline Evaluation Services LLC,where he
generatesdetailed restricted real estate appraisals and market analysisreports through critical thinking,
experience, resourcefulness and research. Tarleton earned hisMaster of Business Administration (MBA), and
Bachelor of Science in Business Administration (BSBA)degrees from Coastal Carolina University. He also earned an
Associate in Applied Science Degree in Forestry Management Technology: Wildlife Management Emphasis and
Forestry Business Emphasisfrom Horry-Georgetown Technical College.Tarleton hasa diversified background
which includesmultiple certificationsand positions heldin forestry, researchand land management.Prior to
working for Streamline Services, he was employed at Coastal Carolina University as a Research Associateand
Graduate Assistant in theGrant Center for Real Estate and Economic Development. His many responsibilities
included: networking, building relationships, preformingresearch, analysis, and composingreports for the
University, Grant Center and various other clients.
F. Blynn Beall is a Certified General Real Estate Appraiser who earned his education through the Appraisal
Institute.Beginninga fee appraisal career in 2008, he partnered to form Streamline Evaluation Services in 2013to
focus on providing alternative valuation solutions along with feasibility and impact studies for clients. Heis a
graduate of Coastal Carolina University’s WallCollege of Business with a BA degree in Business Finance and is
currently a candidate for aMAI designation through the Appraisal Institute. Blynnis a life-long resident of the
Grand Strand and has experience in appraising various property types throughout the Southeast United States and
is currently licensed in South Carolina, North Carolina, Georgia, Tennessee and Virginia.
Proposed Sand MinePage 13
Attachments
To insure the quality of the conclusionsin this report, additional research was done which excluded new-
construction sales and considers only resales.This is shown side-by-side with the data previously presented in the
report (New Construction & Resale).The additional information is shown in the charts and graphs below and on
the following pages.
(The search optimization programs provided by the Coastal Carolinas Association of REALTORS® Multiple Listing Service (MLS) wasn’t able to
separate new construction from resales until midway 2011.)
Year Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales
2009 $284,144 ---9 $226,570 ---18 $224,554 ---2,707
2010 $261,319 -8%21 $208,090 -8%21 $211,682 -6%3,050
2011 $274,309 5%11 $182,237 -12%19 $211,176 0%3,237
2012 $264,705 -4%26 $214,284 18%30 $197,304 -7%3,840
2013 $266,030 1%13 $235,666 10%77 $206,321 5%4,649
2014 $274,188 3%16 $241,798 3%66 $217,631 5%5,143
2015 $294,941 8%17 $255,630 6%77 $229,367 5%5,955
2016 $275,557 -7%22 $261,994 2%84 $238,959 4%6,392
2017 $293,389 6%18 $253,716 -3%36 $249,961 5%6,981
2018 $319,326 9%9 $278,130 10%21 $259,596 4%4,722
%∆ 2011 - 2018 116%162 153%449 123%46,676
%∆ During Mining 107%73 105%263 115%24,471
45%59%52%
Year Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales
2011 $272,000 5 $192,615 13 204,797$ 1,413
2012 $258,244 -5%16 $192,430 0%20 184,817$ -10%2,666
2013 $265,033 3%12 $218,843 14%21 197,110$ 7%3,098
2014 $273,473 3%15 $235,400 8%30 201,889$ 2%3,285
2015 $294,383 8%18 $244,392 4%25 216,567$ 7%3,676
2016 $275,557 -6%22 $256,107 5%29 228,093$ 5%3,893
2017 $293,389 6%18 $252,435 -1%34 242,858$ 6%4,290
2018 $319,326 9%9 $278,130 10%21 251,158$ 3%2,927
%∆ 2011 - 2018 117%115 144%193 123%25,248
%∆ During Mining 107%73 107%118 120%15,144
63% 61%60%
%Δ # Sales: Mining / Non Mining
%Δ # Sales: Mining / Non Mining
Blackmoor (Resale)
Blackmoor International Club Horry County
Blackmoor (New Construction & Resale)
Blackmoor International Club Horry County
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Blackmoor (New Construction & Resale)
Blackmoor (Resale)
(The search optimization programs provided by the Coastal Carolinas Association of REALTORS® Multiple Listing Service (MLS) wasn’t able to
separate new construction from resales until midway 2011.)
Proposed Sand MinePage 15
(The search optimization programs provided by the Coastal Carolinas Association of REALTORS® Multiple Listing Service (MLS) wasn’t able to
separate new construction from resales until midway 2011.)
Year Avg. Sales Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales
2009 $144,877 ---9 $166,767 ---9 $224,554 ---2,707
2010 $138,991 -4%19 $161,057 -3%7 $211,682 -6%3,050
2011 $123,478 -11%14 $148,700 -8%4 $211,176 0%3,237
2012 $133,147 8%20 $179,600 21%5 $197,304 -7%3,840
2013 $137,239 3%19 $164,031 -9%5 $206,321 5%4,649
2014 $145,710 6%21 $188,800 15%9 $217,631 5%5,143
2015 $158,125 9%24 $194,257 3%7 $229,367 5%5,955
2016 $157,165 -1%28 $203,036 5%11 $238,959 4%6,392
2017 $179,445 14%33 $193,225 -5%4 $249,961 5%6,981
2018 $172,931 -4%13 $204,750 6%2 $259,596 4%4,722
%∆ 2009 - 2018 126%200 125%63 116%46,676
%∆ During Mining 119%119 108%33 119%29,193
60%52%63%
Year Avg. Sales Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales
2011 $124,382 11 $143,333 3 204,797$ 1,413
2012 $121,300 -2%14 $179,600 25%5 184,817$ -10%2,666
2013 $131,736 9%15 $149,700 -17%5 197,110$ 7%3,098
2014 $145,710 11%21 $188,800 26%9 201,889$ 2%3,285
2015 $156,918 8%22 $194,257 3%7 216,567$ 7%3,676
2016 $154,320 -2%24 $203,036 5%11 228,093$ 5%3,893
2017 $176,642 14%31 $193,225 -5%4 242,858$ 6%4,290
2018 $172,931 -2%13 $204,750 6%2 251,158$ 3%2,927
%∆ 2011 - 2018 139%151 143%46 123%25,248
%∆ During Mining 121%111 102%33 120%18,071
74% 72% 72%
Forestbrook (Resale)
%Δ # Sales: Mining / Non Mining
%Δ # Sales: Mining / Non Mining
Hunters Ridge W of Panther Parkway Steeple Chase Horry County
Hunters Ridge W of Panther Parkway Steeple Chase Horry County
Forestbrook (New Construction & Resale)
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Forestbrook (New Construction & Resale)
Forestbrook (Resale)
(The search optimization programs provided by the Coastal Carolinas Association of REALTORS® Multiple Listing Service (MLS) wasn’t able to
separate new construction from resales until midway 2011.)
Proposed Sand MinePage 17
(The search optimization programs provided by the Coastal Carolinas Association of REALTORS® Multiple Listing Service (MLS) wasn’t able to
separate new construction from resales until midway 2011.)
Year Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales
2009 $261,291 ---22 $212,677 ---1 $318,000 ---15 $224,554 ---2,707
2010 $243,267 -7%18 $188,513 -11%1 $318,000 0%16 $211,682 -6%3,050
2011 $267,577 10%22 $172,721 -8%5 $289,700 -9%14 $211,176 0%3,237
2012 $230,004 -14%23 $168,130 -3%6 $285,917 -1%15 $197,304 -7%3,840
2013 $233,805 2%33 $187,483 12%12 $287,895 1%16 $206,321 5%4,649
2014 $269,770 15%24 $204,395 9%7 $291,783 1%20 $217,631 5%5,143
2015 $284,490 5%52 $208,207 2%12 $295,025 1%22 $229,367 5%5,955
2016 $290,218 2%41 $226,303 9%35 $307,618 4%26 $238,959 4%6,392
2017 $285,117 -2%41 $231,705 2%18 $315,941 3%21 $249,961 5%6,981
2018 $310,719 9%23 $233,416 1%6 $310,667 -2%12 $259,596 4%4,722
%∆ 2009 - 2018 133%299 124%103 108%177 116%46,676
%∆ During Mining 116%195 135%77 107%113 123%29,216
65%75%64%63%
Year Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales
2011 $278,900 11 $175,800 10 226,264$ 5 204,797$ 1,413
2012 $229,875 -18%14 $168,130 -4%15 217,143$ -4%14 184,817$ -10%2,666
2013 $239,507 4%15 $180,662 7%14 227,043$ 5%14 197,110$ 7%3,098
2014 $267,785 12%21 $204,395 13%20 231,125$ 2%8 201,889$ 2%3,285
2015 $271,995 2%22 $208,207 2%22 259,863$ 12%8 216,567$ 7%3,676
2016 $269,650 -1%24 $224,955 8%25 264,911$ 2%13 228,093$ 5%3,893
2017 $278,864 3%31 $231,705 3%21 265,032$ 0%11 242,858$ 6%4,290
2018 $315,165 13%13 $233,416 1%11 273,375$ 3%8 251,158$ 3%2,927
%∆ 2011 - 2018 113%151 133%138 120%81 123%25,248
%∆ During Mining 97%107 128%106 102%62 120%18,031
71% 77% 77% 71%
%Δ # Sales: Mining / Non Mining
%Δ # Sales: Mining / Non Mining
Spring Lake Covington Lake Horry County
Cottonpatch (New Construction & Resale)
Waterford Spring Lake Covington Lake Horry County
Cottonpatch (Resale)
Waterford
Proposed Sand MinePage 18
Cottonpatch (New Construction & Resale)
Cottonpatch (Resale)
(The search optimization programs provided by the Coastal Carolinas Association of REALTORS® Multiple Listing Service (MLS) wasn’t able to
separate new construction from resales until midway 2011.)
Proposed Sand MinePage 19
Cumulative Trend Lines (New Construction & Resale)
Cumulative Trend Lines (Resale)
(The search optimization programs provided by the Coastal Carolinas Association of REALTORS® Multiple Listing Service (MLS) wasn’t able to
separate new construction from resales until midway 2011.)
Addendum Report Sand Mine Study
What impact does the presence of an active sand mine have
on home values in the adjacent neighborhoods?
4117 Castle Hayne Road
Castle Hayne, NC 28429
Prepared For:
Stephen D. Coggins
Prepared By:
Trevor Tarleton & F. Blynn Beall
Streamline Evaluation Services
2513 N. Oak Street Suite 305, Myrtle Beach, SC 29577
T:843.808.9716 W: www.streamlineevaluation.com
Addendum Report Sand Mine Study Page 2
Addendum
The previous analysis completed by Streamline Evaluation Services determined that active sand mining operations
did not impact single-family residential property values within close proximity to the mining operations.The
original analysis utilized information from Horry County,due to the lack sand mines located within New Hanover
County that met the criteria of being in close proximity to a single-family residential development to the point
where operations could impact residents. Also, based on inspection of aerial imagery, no sand mines were
identified within Brunswick County West of US Highway 17 (Ocean Highway) in close proximity to residential
developments considered comparable.
Post analysis, Streamline Evaluation Services received information from Stephen D. Coggins about a sand mine
located East of US Highway 17 at the end of Villanova Loop SE in Southport NC.This addendum will include
information about the Villanova Sand Mine and its impact on the Saint James Plantation subdivisions bordering
and located in close proximity to the mine.It will compare and analyze the annual changes in single family homes
sale prices,during pre-mining and active mining operations.The best method to determine if sand mines impacted
sales prices was to: compare the yearly average sales price rates between a sample subdivision and the
comparative subdivisions within similar timeframes.Although the price per square foot and the average sale price
were both considered, the average sale price was considered to be a more reliable unit for comparison.
Due to the layout of the St James Plantation, a portion of the development borders and is in close enough
proximity of the Villanova Sand Mine that some homes sites could have been impacted by active mining
operations. These home sites, for the purpose of this addendum will be considered the sample subdivision, ‘St
James (A).’ Home sites located in the St James subdivision which are in sections not impacted/affected by the
traffic, noise and/or potential dust created from mining operations, will be considered ‘St James (B).’St James (B)
and the Arbor Creek Subdivisions make up the comparative subdivisions.
The data/information on subdivisions around the Villanova Sand Mine was derived from search optimization
programs provided by Flexmls Systems. Parameters of the searches included:yearly home sales closed from
January 1, 2009, to YTD 2018 (August 23, 2018) for each sample subdivision and comparative subdivision.Only
detached single-family residences were included with a minimum of one bedroom and bathroom count,as a
precaution,in case a property (primarily lots)had been included in the wrong category.
Summary of Findings
As with our previous analysis, it was determined that the sample subdivision grew at a similar rate to the overall
market during periods of active mining and there appeared to be no significant economic impacts to home values
as result of having an active sand mine in close proximity to each of the neighborhoods analyzed.
Addendum Report Sand Mine Study Page 3
Villanova
The Villanova Sand Mine (shown in yellow in the graphic below)measures 86± acres and borders the St James
Plantation Golf Course community. The sample subdivision “St James A”(shown in red)shows areas where the
neighborhood was/is potentially affected by active mining operations. Ingress/egress to the sand mine is provided
via Villanova Loop South East (shown in yellow). The light purple area designates the part of the St James
subdivision not affected by the mine (comparative subdivision “St James B”) and (shown in blue)Arbor Creek
Subdivision (comparative subdivision “Arbor Creek”). They were selected due to their close proximity and lack of
impact from mining operations.Research indicated that the Villanova Sand Mine became active after 2/2011 and
was still active when the most recent photo was taken in 10/2016.The photos on the following page show both
the location of the sand mining prior to the mining operation and the most recent aerial imagery available.
Addendum Report Sand Mine Study Page 4
Villanova Sand Mine Historical Imagery
2/2011
10/2016
Addendum Report Sand Mine Study Page 5
The following chart and graph show the changes in average home values from 01/01/2009 through 8/23/2018.
They contain information on the sample subdivision adjacent to the sand mine,St James (A)and the comparable
subdivisions (St James (B) &Arbor Creek.Active mining periods are highlighted in yellow and the 2018 sample size
is highlighted in red due to it only extending from 01/01/2018 through 08/23/2018.
After plotting the average sales prices within the sample subdivision, St James (A), and the comparative
subdivisions, St James (B)and Arbor Creek, the data appeared to trend similarly over a longer timeframe. While
the average sales prices of the comparative St James (B) and Arbor Creek Subdivisions remained lower than St
James (A), they trended well with the sample subdivision considering the sample sizes.In 2012 there were no sales
in St James (A). Between 2009 and 2011 there was no mining operations, so the decline in the sample subdivisions
sales rates would not be attributed to mining operations.The boldened average sales prices in the grid and peaks
in the chart above are a result of atypical home sales influencing the yearly averages,which is one drawbacks of
smaller sample sizes.Atypical homes could be: larger in size, higher quality, have a premier location, superior lot
size and/or be influenced by a lake or golf course frontage.Overall,during the periods of the active mining the
sample subdivision does not appear to vary greatly from the trend of the comparative subdivisions.
Year Avg. Sales Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales Avg. Sale Price %∆/Yr Sales
2009 $405,000 ---1 $404,468 ---8 $257,292 ---12
2010 $478,333 18%3 $388,328 -4%9 $248,553 -3%15
2011 $454,625 -5%4 $460,000 18%4 $263,966 6%15
2012 $0 ---0 $387,317 -16%6 $248,219 -6%9
2013 $582,500 ---3 $375,770 -3%8 $233,950 -6%18
2014 $449,167 -23%3 $360,128 -4%6 $253,599 8%14
2015 $508,980 13%5 $376,357 5%7 $268,107 6%18
2016 $429,500 -16%3 $396,887 5%15 $263,621 -2%18
2017 $483,333 13%6 $380,147 -4%15 $277,770 5%33
2018 $524,500 9%3 $431,364 13%11 $281,782 1%17
%∆ & # Sales 2009 - 2018 130%31 107%89 110%169
%∆ & # Sales During Mining 115%27 94%72 107%142
Villanova
St James (A)St James (B)Arbor Creek
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
$550,000
$600,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
St James (A)St James (B)Arbor Creek
ACTIVE MINING PERIOD
Addendum Report Sand Mine Study Page 6
Conclusion
Sales prices in individual neighborhoods may vary over time for a variety of factors, including but not limited to;
market demand, available supply, cost of construction/materials, availability of financing, etc. Many factors,
including atypical home sales,were considered while analyzing each subdivision to gauge if the changes in sales
prices over time were attributable primarily to the market or outside influences.The general trend of each sample
and comparative neighborhood appears to closely trend with the real estate market during each respective
timeframe.This inferred analysis places an emphasis on historical sales data which is quantifiable. After our
analysis, it was determined that there were no significant economic impacts to home values as result of an active
sand mine in close proximity to each neighborhood.
Addendum Report Sand Mine Study Page 7
About Us
Streamline Evaluation Services LLC, provides credible real estate solutions by synergizing technology and industry
professionals. Streamline collects information, analyzes the data, and generates high-quality streamlined products
utilizing the most recent market information available through paid and public records. This way their clients can
make timely, informed and educated strategic decisions. Our reports are easy to read, accurate, compliant, and
customized to each clients’ requirements. Streamline Evaluation Services boasts timely turnaround of reports to
meet deadlines with dedicated and accessible analysts, as well as an internal quality review process and approval
before transmittal.
From automated appraisals to in-depth evaluations,analyses, assessments and studies, Streamline Evaluation
Services provides full-service solutions for a wide spectrum of property types. We work with financial institutions
to ensure that their internal requirements are met, while also maintaining compliance with the Uniform Standards
of Professional Appraisal Practice, federal regulation 12 CFR Part 34 (Title XI of FIRREA) and standards endorsed by
the Appraisal Institute and other professional organizations.
Our review process ensures that each report offers supportable opinions as to value and then offering conclusions
and/or recommendations to the client. This process guarantees that the appraisal contains adequate, relevant and
meaningful discussion, analysis and rationale so that it can be readily understood to lead to a credible value
conclusion, and contains sufficient supporting documentation to indicate the reasonableness of the conclusion.
Trevor Tarleton, M.B.A.is Real Estate Research/Market Analyst at Streamline Evaluation Services LLC,where he
generates detailed restricted real estate appraisals and market analysis reports through critical thinking,
experience, resourcefulness and research. Tarleton earned his Master of Business Administration (MBA), and
Bachelor of Science in Business Administration (BSBA)degrees from Coastal Carolina University. He also earned an
Associate in Applied Science Degree in Forestry Management Technology: Wildlife Management Emphasis and
Forestry Business Emphasis from Horry-Georgetown Technical College.Tarleton has a diversified background
which includes multiple certifications and positions held in forestry, research and land management.Prior to
working for Streamline Services, he was employed at Coastal Carolina University as a Research Associate and
Graduate Assistant in the Grant Center for Real Estate and Economic Development. His many responsibilities
included: networking, building relationships, preforming research, analysis, and composing reports for the
University, Grant Center and various other clients.
F. Blynn Beall is a Certified General Real Estate Appraiser who earned his education through the Appraisal
Institute.Beginning a fee appraisal career in 2008, he partnered to form Streamline Evaluation Services in 2013 to
focus on providing alternative valuation solutions along with feasibility and impact studies for clients. He is a
graduate of Coastal Carolina University’s Wall College of Business with a BA degree in Business Finance and is
currently a candidate for a MAI designation through the Appraisal Institute. Blynn is a life-long resident of the
Grand Strand and has experience in appraising various property types throughout the Southeast United States and
is currently licensed in South Carolina, North Carolina, Georgia, Tennessee and Virginia.