1. The opening of the River Course and Clubhouse provided a private golf option to the island's amenities.
2. Reopening of the Marsh Point Course as Cougar Point and construction of the Osprey Point Clubhouse proved the Resort owner's financial commitment to the island
3. Completion of the new Property Owner Beach and Recreation Center.

SEABROOK
According to the January issue of Ocean Views, the Seabrook Island Real Estate closed nearly $30 million in property last year. The over 30% increase in volume reflects increased buyer awareness of the value Seabrook Island represents. We did not receive a return call from Joe Bradford, Broker in Charge for Seabrook Island Real Estate for personal comment.

The opening of the Ocean Forest tract and sales of Phases II and development of Phase III of Jenkins Point all provided new blood to what was a relatively stagnant homesite market at Seabrook. In 1997 the advent of lot sales of the Lake Entry tract should continue to add zest to the market for the existing inventory of resale lots. The Club's positive financial performance rounds out the market. There is little possibility of additional assessment to members, new club memberships are being raised 5% and original club members have increased their equity.

ISLE OF PALMS
Sales at Wild Dunes continues to make up over 60% of the sales at Isle of Palms. While sales volumes and unit sales continue to fall, the market suffers only from fall off in available property for sale from new development. Major events at Isle of Palms for 1996 were the opening of the Charleston County Beachfront Park, announcement of a replacement for the bridge at Breach Inlet and the beginning of the new Boardwalk Inn at Wild Dunes. Erosion problems at the Wild Dunes end of the island continue to produce negative publicity.

Isle of Palms continues to be the area of choice for buyers seeking proximity to Charleston and related general services. The resale market will continue to make up the majority of transactions in 1997. Restrictions on refurbishing and renovation of existing structures for compliance with FEMA regulations will restrict the value of older, nonconforming homes, however, an almost nonexistent inventory of new lots for sale will force buyers to choose older homes for upfitting.

Increases projected in the rental market for vacation homes in this area exceed other markets. As rental rates at Isle of Palms increase, additional pressure on sales prices of homes move values closer to those at Kiawah Island. Once the Boardwalk Inn begins operation sometime late in 1997, additional vacation and conference traffic in 1998 should continue to put upward pressure on the market for sales of homes.