SAVANNAH, Ga., May 24, 2023 (GLOBE NEWSWIRE) -- ACRE, a vertically integrated real estate private equity and multifamily investment firm, through the company’s newest debt fund, ACRE Credit II, has provided $26.5 million to MED Developers for the refinance of The Lowe, a newly built, class-A multifamily residential development located in Savannah, GA.
The loan was brokered by John Gavigan, Managing Director of JLL Capital Markets, and will be used to refinance MED Developers’ existing construction debt. Pegasus Residential will manage the property.
“Despite the strong demand for additional multifamily development across the U.S., there is still significantly less liquidity in the market due to recent rate hikes and persistent inflation allowing ACRE to gain market share providing institutional sponsors with the debt,” said Sam Browne, Vice President of ACRE. “We are excited to work with MED Developers on this transaction as we continue to seek out additional opportunities in multifamily assets in growing secondary markets across the U.S.”
The Lowe, which began welcoming its first residents this March, comprises 135 studio, one- and two-bedroom residences ranging in size from 421 to 1,079 square feet, respectively. Unit amenities include keyless entry, highspeed Wi-Fi, quartz countertops with designer backsplashes, private balconies and full-sized in-unit washers and dryers. Community amenities include a resort-style swimming pool, 24-hour fitness center, luxury club room with lounge, pet spa, outdoor grilling area, covered parking garage and a bicycle storage room.
Savannah is currently experiencing a population and job growth explosion catalyzed by a uniquely resilient economic environment that is uncommon among medium-sized markets. Migration from other parts of the country accounts for 50% of Savannah’s annual growth, and many new residents are older with substantially higher incomes. The city’s year-over-year rent growth rate of 6.6 percent remains one of the highest in the Southeast, outpacing much larger markets such as Atlanta and Charlotte. This continued population growth will enable Savannah to continue its upward trajectory within the nation as a strong market for investing and developing multifamily real estate.
About ACRE
ACRE is a vertically integrated real estate private equity and multifamily investment firm that specializes in the investment, development, and management of quality, income-producing multifamily housing projects and communities. ACRE manages capital for institutional investors through a series of active investments in both direct equity and debt markets and has acquired, operated, developed, and made loans on more than 25,000 apartments across 75 properties in 31 cities in the United States, United Kingdom, and Southeast Asia.
About MED Developers
With over 30 projects successfully delivered in the past ten years, MED Developers is one of Washington, DC's fastest growing and most innovative developers of multifamily residential apartments, condominiums, and group housing. MED opened its second office in Savannah, GA in 2020 to expand its footprint into the Southeast markets. Through its unique and constantly growing network and public private partnerships, MED is creating a pipeline of housing that will continue growing through the next generation.
About Pegasus Residential
Pegasus Residential is a boutique, third-party management company with a footprint that spans nine states and 32 metropolitan markets. Headquartered in Alpharetta, Georgia, Pegasus presently has remote offices in Richmond, Charleston, Charlotte, Raleigh, Orlando, Denver and Dallas. Pegasus manages over 44,208 units for more than 40 clients. Aside from daily management of communities in their portfolio, Pegasus provides expertise to clients for acquisitions, new developments, re-developments, branding, marketing, building and construction services. Pegasus Residential management combines both national and local market knowledge for optimal performance. To learn more about Pegasus, visit www.pegasusresidential.com.
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