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Garfield presentation: CBRE study finds Greenville could support an upscale headquarters hotel and meeting space
Summary
Garfield Asset Management told the Greenville City Council that CBRE’s market study supports advancing a tax‑exempt, city‑aligned headquarters hotel with roughly 175 rooms and about 14,000 sq. ft. of meeting space. Presenters said year‑three NOI is projected near $3.5 million and tasks 2–5 will quantify financing and any public gap.
Garfield Asset Management delivered a market study briefing to the Greenville City Council, urging the council to advance to the next design and finance phases for a headquarters hotel and attached meeting space.
Steve Galbraith, chief development officer for Garfield Public Private, introduced the team and said the council previously authorized a professional services agreement that contemplates further phases if the market study is positive. “We think the results of task 1 were positive,” he said, and the team asked the council to authorize work on tasks 2 and 3 — design and cost estimating — with subsequent tasks addressing financing.
Walter Przeski, who runs Garfield’s asset management group, summarized CBRE’s independent findings. CBRE recommended a roughly 175‑room hotel, about 14,000 square feet of meeting space and a restaurant accessible from the exterior. Przeski said CBRE projects stabilized occupancy around 68% and an average daily rate that can reach the high‑$100s; the study models a third‑year net operating income (NOI) before debt service of about $3.5 million. “These numbers show us that, yes, there is demand in Greenville,” Przeski said.
Council members pressed the presenters on assumptions behind the model. Several members asked why the study assumed a tax‑exempt, city‑aligned delivery rather than private ownership. The presenters said the tax‑exempt structure — typically a local government corporation or municipal development district — lowers the cost of capital, reduces required equity returns, and can be necessary to close the financing gap for a full‑service, meeting‑oriented property.
Ray Garfield, the company’s chairman, pointed to previous local examples in Texas where public participation, foundation grants and state rebate programs helped build headquarters hotels that support convention centers. He said those arrangements reduced construction cost through sales‑tax exemptions and provided long‑term community benefit. “It’s cheaper to build because we don’t have to pay the state sales tax on the hard materials,” he said, noting construction savings and rebate programs that can be available under state qualifications.
Presenters emphasized that the market study’s role was to test demand (task 1); the next phases (design, estimating and financial modeling) will produce more precise budgets and the specific subsidy or incentive package required, if any. They estimated 6–9 months to complete the immediate follow‑on work and said they would work with the convention and visitors bureau (CVB) to validate which associations and events would generate the most room nights.
The presentation closed with council members asking for follow‑up data on alternative, taxable/private models and a request that the team return with more detailed cost and financing scenarios for the council’s consideration.
