ACRES Capital Originates Nearly $32M Loan to Complete Athens Multifamily Development
Multifamily DevelopmentDECEMBER 24, 2019
ATHENS, GA (December 2020) – ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a leading commercial real estate middle-market lender, is pleased to announce that it has originated a nearly $32 million construction loan to fund the completion of The Cottages at Ridge Pointe, a 216-unit rental community located at 940 Creek Ridge Lane in Athens, Georgia. The loan carries a term of 18 months and is provided to sponsor Jim Chapman Communities, one of metro Atlanta’s premier homebuilders.
“The phenomenal market dynamics in Athens, along with Jim Chapman’s deep, local knowledge and proficiency in developing multifamily projects, make The Cottages at Ridge Pointe an ideal investment,” said ACRES Chief Executive Officer and President Mark Fogel. “Athens’ rent growth has accelerated since the end of 2018 while vacancies hover near historical lows, creating an excellent environment for new, market-rate developments. As reasonably priced housing remains in demand, we deemed this a prime opportunity to provide optionality to residents ranging from young professionals, to older empty-nesters.”
The Cottages at Ridge Pointe is an existing community with all 38 currently available units occupied. An additional 79 units are already under construction, and the loan will fund the creation of 99 new units to accommodate high demand. The development is made up of single-level, ranch-style homes with a litany of interior features, including wide doorways, attached garages, zero-step entrances and ample attic storage space. Other amenities include an expansive clubhouse, fitness center, outdoor kitchen and grilling station and resort-style pool. As the existing lender on the project, ACRES was selected for the new loan by the sponsor for its ability to creatively structure a financing solution to be instituted throughout multiple phases of the project.
Jim Chapman, owner of Jim Chapman Communities, stated, “Our relationship with ACRES has resulted in sustained value for The Cottages at Ridge Pointe, and we are excited to advance the project into its next phase of development. ACRES’ flexible financing solutions complement our experience in the greater Atlanta metro area, giving us the ability to offer renters a new option in a stellar market. ”
The Cottages at Ridge Pointe is located approximately eight and a half miles from Downtown Athens, a city anchored by the University of Georgia, St. Mary’s Health Care System and Piedmont Athens Regional Hospital. Athens’ multifamily market maintains solid fundamentals, with its high occupancy and rent growth attracting a variety of institutional investors.
About ACRES Capital
ACRES is a balance sheet lender and SEC-registered investment adviser that provides debt capital solutions for the commercial real estate industry on a nationwide platform. ACRES seeks opportunities in the $10 million to $75 million range on stabilized and transitional properties including multifamily, retail, office, hospitality, and industrial. As of December 2019, ACRES has closed over $1.25 billion of transactions.