Hyperion Tower (North Myrtle Beach) – Investment Case Study

Location & Overview: Hyperion Tower is an oceanfront high-rise in the Cherry Grove section of North Myrtle Beach (5508 N. Ocean Blvd). Built in 1984, it sits atop sturdy stilts behind the dune line, offering unobstructed Atlantic views from every balcony. The building provides classic beachfront resort amenities: an oceanfront outdoor pool and wooden sundeck, covered underground parking, elevators, and a secured lobby. HOA dues (~$800–$1,000/mo) cover water, sewer, trash and basic insurance. The setting is premier: Cherry Grove is a quiet, family-friendly beach community known for its wide, dune-backed shoreline and fishing pier. Guests enjoy proximity (∼15 min drive) to Barefoot Landing’s shops, theaters and restaurants, and local Cherry Grove attractions (seafood markets, oceanfront bars, shops).

Building & Amenities: Hyperion Tower’s lobby leads to under-building (covered) parking and elevators to all floors. The common area includes a fenced outdoor pool with deck and BBQ area, as well as an on-site fitness room (HOA includes a fitness center). Key amenities:

• Beachfront Access: A private path over the dunes leads to Cherry Grove Beach, one of the widest on the Grand Strand. Guests can sunbathe, swim or fish off nearby Cherry Grove Pier (985 ft long).

• Pool/Sundeck: Oceanfront pool with large sun deck and picnic/barbecue area.

• Parking/Elevator: Secured covered parking (ground level), keypad entry, and elevator service to all floors.

• Unit Features: In-unit full-size washer/dryer (some units), oceanfront balconies, central HVAC, and fully equipped kitchens. Many units have been updated with LVP flooring, granite counters and impact-rated windows (e.g. recent 3BR remodel).

Floor Plans & Layout: Hyperion Tower offers 2‑, 3‑, and 4‑bedroom condos, all oceanfront:

• 2BR/2BA Units (~1,000–1,150 sq.ft.): Typically open-plan great rooms, dining area and kitchen, two oceanfront bedrooms. Balconies face east over the Atlantic. Example: Unit 602 (6th floor, 2×2, 1,105 sqft) with full Atlantic vistas. These units are generally efficient in layout, with modest foyer and no wasted hallways.

• 3BR/2BA Units (~1,250–1,400 sq.ft.): Larger great rooms and kitchens. Corner end units (e.g. Unit 201, 3×2, 1,325 sqft) enjoy a wraparound balcony and dual exposures (side ocean view plus downshore coastline). Standard 3BRs have one oceanfront balcony (off living room/master), with bedrooms at rear. One ground-floor 3BR is only ~980 sq.ft., suggesting one smaller bedroom; most are ~1,250–1,350 sq.ft.

• 4BR Penthouse (~1,800 sq.ft.): Only the top floor penthouse has 4BR/3BA (e.g. Unit 702PH, 4×3, 1,800 sqft). It features two large balconies (living room and master) and panoramic ocean views.

All units have full kitchens, dining space and oceanfront great rooms. Layout efficiency is generally high (open concept, no wasted space). Views are uninterrupted ocean to the east; corner and upper units also have broad views down the beach. (Lower floors see beach/resort view over dunes.)

Pricing Trends: Hyperion Tower has seen strong appreciation. Sales history (MLS) illustrates the trend:

• Mid-2010s: 3BR/2BA units (~1,200–1,300 sqft) sold in the $200–210K range (2015 sales at ~$200K). For example, a 1,200-sqft 3BR closed at $199,000 in 2015.

• 2019: 3BR/2BA (1250–1325 sqft) were ~$250–265K. A 3BR (1250 sqft) sold for $253,000. A smaller 3BR (980 sqft) also fetched $253K.

• 2020–2021: Prices jumped into the mid-$300Ks. In mid-2021, a 2BR/2BA (1,070 sqft) sold for $365,000. Another 2BR (1135 sqft) sold for ~$359K.

• 2022: 3BR’s reached the mid-$400Ks. A renovated corner 3BR (1325 sqft) closed at $482,000. Another 3BR sold for $465K (2021 data).

• 2024: The peak recent sale: a 3BR (1325 sqft, corner) sold for $525,000.

These sales imply a roughly 150–160% increase in price for similar units from 2015 to 2024. Current active listings echo this: 3BR units are offered around $435K–$525K and 2BR around $300K–$360K. For example, at this writing a 3BR is listed at $525K and a 2BR at $455K.

Short-Term Rental Potential: North Myrtle Beach (market data from AirDNA) has strong vacation demand. The average North Myrtle Beach (city) STR occupancy is about 57% annually, with an ADR around $341 and RevPAR ~$191. Assuming a Hyperion condo captures market-average rates and is listed year-round, the typical annual gross rental revenue is roughly $35K (i.e. $34.9K per listing per year).

Seasonality is pronounced: peak summer months (June–Aug) often see occupancy well above 80–90% with ADR rising to the $400–$450 range, whereas winter months slump (occupancy ~20–30%, ADR ~$150–200). For example, a typical 3BR may rent for $1,200–$1,500/week in summer versus $150/night in winter. Peak events (Cherry Grove Pier fireworks on July 4th, local festivals, etc.) fill summer calendars, while shoulder seasons (Spring/Fall) and holidays see steady mid-range bookings.

Using the AirDNA data, a rough yield estimate: $35K gross rent on a $500K purchase is a 7% gross yield. After expenses (HOA ~$12K/yr, taxes ~$1.6K, insurance ~$1K, plus property management ~20% of rent ≈$7K), net rent might be ~$14K/yr (≈2.8% net yield on cost). With leverage (e.g. 80% LTV), equity yields could reach 5–7% when accounting for mortgage paydown and appreciation. These figures compare favorably to many passive investments, especially given strong tourism demand.

Costs & Long-Term Considerations: Owners pay annual HOA dues (~$8–10K for typical 2BR, up to ~$12K for larger units) which cover water/trash and most common maintenance. Property taxes in Horry County are low: SC’s assessed value for non-primary residences is 6% of market; current millage is ~52.1 mills (2024 roll-back). Thus a $525K unit (assessed ~$31.5K) has roughly $1.6K in annual tax (~0.3% of market price) – among the lowest rates nationally. Insurance costs will include homeowners (wind/hail) plus mandatory flood coverage for oceanfront; these can add ~$1K–2K/year depending on coverage.

Hyperion Tower’s building is nearly 40 years old, so owners should budget for eventual capital repairs (elevator replacement, roof, etc.). However, the HOA has updated major systems (roof, elevators) in recent decades. Strong demand and full rental bookings mean short depreciation of furniture and faster renovation cycles. From a lifestyle standpoint, owners enjoy full beachfront living, wide ocean views, and easy access to area golf courses, entertainment (e.g. Alabama/Carolina Opry at Barefoot Landing ~2 miles south) and water sports.

Comparables (Nearby Oceanfront Condos): Cherry Grove/NMB offers similar condo products. For example, the Prince Resort (Cherry Grove Pier area) is a larger oceanfront complex; its 2BR units are currently listed around $390K–$416K. By contrast, Hyperion’s recent sales were lower (e.g. a 2BR sold for $265K in 2020). Newer resort towers (like Myrtle Beach’s Dunes Village) fetch even higher prices (3BR around $680K). In summary, Hyperion’s pricing is mid-market: higher than dated older towers but below brand-new luxury resorts. Rental metrics are comparable: larger resorts and nearby condos all see 50–60% occupancy and ADR in the mid-$200s to $300s (driven by location and amenities).

Rental Demand Drivers: The property benefits from multiple demand catalysts: Cherry Grove’s wide beach and pier attract families and anglers; seasonal festivals (Blue Crab Festival, Bike Rally, Spring Fling, etc.) fill the calendar; and the area’s waterfront dining and entertainment (several seafood markets, casual restaurants and bars within walking distance, plus Barefoot Landing’s shops/theaters nearby) keep bookings high. The quieter Cherry Grove location (vs. crowded Myrtle Beach) is a draw for families. Walkability is moderate (most conveniences are a short drive or golf-cart ride away), but the immediate beachfront and swimming pool are major pull factors.

2025–2027 Outlook & ROI: Given North Myrtle Beach’s healthy tourism growth, we project modest continued appreciation and strong cash flow potential. If trends continue (AirDNA shows ~3–6% annual growth in occupancy/ADR recently), Hyperion Tower values may rise another 5–10% per year over the next 2–3 years. Mortgage interest rates and broader housing demand will influence pace; historically, this market has outperformed many other coastal markets due to year-round appeal. Key risks include hurricane/sea-level concerns (requiring adequate insurance), potential HOA assessments for aging infrastructure, and any future short-term rental regulations.

ROI Example (2025–2027): A $500,000 purchase financed at 20% down might generate roughly $35K/year gross rental (AirDNA average). Subtracting $12K HOA, $1.6K tax, $1K insurance and ~$7K management yields ~$13.4K net cash (2.7% yield). With modest leverage, principal paydown and 2025–27 appreciation (if +7% per year), investor IRR could approach the mid-single digits annually. Compared to alternatives, Hyperion Tower offers the “best of both”: strong leisure-tourism demand plus long-term equity growth in a low-tax environment.

Sources: Data compiled from MLS sales records and local real estate listings, North Myrtle Beach tourism reports, and AirDNA market data. (Charts and tables above use these cited figures.)

Disclaimer: All information given is meant to be educational. I am only passing on historical information shared with me by owners, rental companies, and various publications. I am not guaranteeing these numbers, nor can I guarantee future rentals or appreciation. This information is not intended to replace your own research, or to provide legal, investment, or financial advice. Please consult an attorney for legal advice.