ACRES Capital Originates $24M Loan to Construct Savannah, GA Multifamily Property
MARCH 26, 2021SAVANNAH, Ga. – (March 26, 2021) – ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a leading commercial real estate middle-market lender, has originated a $24 million loan to fund the construction and stabilization of The Lowe (the “Property”), a 135-unit multifamily rental community located at 1501 Montgomery Street in Savannah, Georgia’s historic Street Car District. The loan is provided to sponsor MED Developers (“MED”), an innovative developer of multifamily properties, condominiums and group housing that owns and manages a portfolio of more than 700 multifamily units.
“The Lowe will satisfy the high demand for quality rental units in the Savannah market,” said ACRES Chief Executive Officer and President Mark Fogel. “Sponsor MED Developers has the expertise to recognize the diversity of Savannah’s demand drivers, which include college students, professionals and a strong military presence. As job growth in the metro area continues, this project will supply a wide range of residents with high-quality housing optionality.”
The Lowe will be a four-story, podium-style multifamily building with 80 parking spaces and best-in-class amenities. One of the few new multifamily developments in the downtown market with both a pool and indoor parking, the Property will also feature a clubhouse area, fitness center and outdoor grills. The unit mix will comprise 46 studio units; 77 one-bedroom, one-bathroom units; and 12 two-bedroom, two-bathroom units. Unit amenities will include stainless steel appliances, brushed nickel hardware, built-in bedroom closets, in-unit washers and dryers, and private balconies for select units.
The Property is centrally located in Savannah’s Downtown Street Car District, less than two miles from the Savannah River and within proximity to Interstates 16 and 95. It sits within walking distance to several Savannah College of Art and Design facilities and classrooms, the Port of Savannah, as well as numerous parks and retail areas within the Savannah Historic District.
Nick Finland, VP of Development for MED, stated, “We are thrilled to partner with ACRES, who was able to provide us with a flexible financing package to help bring this project to life. We are committed to developing quality assets in high barrier-to-entry markets, and The Lowe will fulfill this need in the highly constrained Downtown Savannah market.”
As the oldest and third-largest city in Georgia, Savannah is a unique southern location with a diverse economy driven by a mix of aerospace manufacturing, tourism, educational institutions, and the military. The metro area has experienced steady population growth since 2000 due to its growing economy and increasing retiree base.
The loan was arranged by John Gavigan of JLL.
