Residences at St. George

Savannah, GA

Access the OM

A 248-unit value-add, garden-style multifamily offering

20.1%

2.3x

8.7%

Target IRR
Target Equity Multiple
Target Average Cash-on-Cash

Value-Add Upside Through Interior Renovations

  • 44% of the property still has classic interiors, allowing for rent growth through a proven value-add program
  • Seller has undertaken a value-add strategy that has achieved an average uplift of $262 per month
  • Matheson will continue the scale and scope of renovations in line with the existing strategy

Phenomenal Leasing Growth Trends

  • Proven loss to lease capture with new leases being signed $142 above in-place effective rents
  • Large opportunity to capture outstanding loss to lease, with 48% of leases expiring during peak leasing season (February through June)

Assumption Loan At Rates & Leverage Unachievable Today

  • This deal is being acquired with an assumption loan providing terms far superior to borrowing today
  • The loan has a fixed interest rate of 2.95%, at over 66% leverage on acquisition price
  • Available $3.1 million supplemental loan allows for 74% LTV and 67.8% LTC

Solid Basis Vs. Recent Trades

  • We are acquiring Residences at St. George and it’s highly desirable financing for under $156k per unit, which is below the pricing of many recent trades
  • Six other assets in the submarket recently sold for between $154k and $173k per unit. All six acquisitions required new financing

Strong Market Fundamentals

  • Savannah has retained 94% occupancy despite rates falling nationally
  • 17.5% rent growth expected over the next four years (Yardi Matrix)
  • Savannah population has grown by 16% over the last 10 years, twice the national average

Entrenched Economic Drivers

  • The Port of Savannah is the 3rd busiest in the nation as of 2023, following a deepening of the harbor to 47 feet
  • Hyundai is investing $8 Billion to build a battery plant, which will build 300,000 EVs per year and employ 15,000
  • Gulfstream Aerospace completed a $150MM, 142k sf expansion facility in 4Q23, adding 1,600 new jobs
  • Memorial Health University Medical Center and St. Josephs Hospital employ over 10,000 medical professionals
  • Over 14 million yearly visitors to the historic city drive a thriving service industry
  • Savannah is home to 17 colleges and universities, with 78k students pursuing higher education

High Barriers to Entry and Limited Supply Pipeline

  • Due to its location along the coast and SC border, Savannah growth is limited directionally
  • Local government historical and development regulations add additional barriers to entry
  • Unlike nearby Charleston, Savannah doesn’t face a deep pipeline of upcoming new delivery
  • Lack of robust multifamily development pipeline leaves existing inventory to absorb growing population, bolstering rent growth

Download the Offering Memorandum

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Please be aware that investment opportunities with Matheson Capital tend to become oversubscribed quickly. So if you'd like to participate, let us know as soon as you can and someone from our team will be in touch with you.