Atlas Buys Savannah Value-Add Asset
The buyer assumed a Fannie Mae loan originated by Berkadia.
Atlas Real Estate Partners has purchased Cottages at Emerald Cove, a 290-unit, Class A community in Savannah, Ga. The previous owner was Rockworth Cos., as identified by Yardi Matrix. Cushman & Wakefield represented the seller.
Rockworth acquired the asset in 2020 for $45.5 million, according to Yardi Matrix data. Berkadia originated a $33.7 million Fannie Mae acquisition loan that same year, the data provider shows. The note carries a 3.11 percent fixed rate and will mature in December 2030.
Three years later, the same lender provided another $9.4 million Fannie Mae note with a 6.9 percent fixed rate, also set to mature in December 2030, according to the same source. Atlas assumed one of the Fannie Mae loans originated by Berkadia.
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Atlas plans to reposition the community by renovating unit interiors, upgrading the existing amenities, as well as the common areas. Among them, the central lake is slated to take shape as a lifestyle amenity.
Consisting of 32 buildings spread across nearly 22 acres, Cottages at Emerald Cove comprises one- to three-bedroom floorplans ranging between 656 and 1,410 square feet. Units feature 9-foot or vaulted ceilings, granite countertops, as well as private decks. The community amenities include a business center, gym, open lawn, fire pit, picnic area and community kitchen, among others.
Located at 100 Shellbark Way in Savannah’s Pooler submarket, the property is less than 2 miles from Interstate 95 and roughly 13 miles northwest of downtown Savannah. Georgia Tech Savannah—a satellite campus of Georgia Institute of Technology—operates less than 2 miles away.
In the decade ending in 2020, Pooler’s population spiked by 25.5 percent, according to the U.S. Census Bureau. What’s more, population grew another 2.1 percent between 2020 and 2022.
Atlas’ value-add focused investments
Since its foundation in 2009, Atlas Real Estate Partners closed 50 deals with a combined value of $1.7 billion. The firm targets undervalued multifamily assets and other housing investments including value-add purchases, as well as qualified opportunity zone development, among others. Atlas plans to spend roughly $1 billion in value-add multifamily properties throughout the Southeast over the next three years.
Cottages at Emerald Cove marked Atlas’ second acquisition in the area. The company’s first purchase was the 256-unit Longshore Commons Apartments in Savannah, Ga. Atlas planned to refurbish units and revamp the amenities. The process is expected to reach completion by September.
Savannah-Hilton Head’s steady multifamily deals
Year-to-date through June, six assets comprising 50 or more units each changed hands in the Savannah-Hilton Head market, Yardi Matrix data shows. The transactions encompassed north of 770 units with an average price per unit upward of $175,000.
Earlier this month, a joint venture between Peach Hill Capital and RK2 Property Group purchased Napali Capital’s Georgetown Crossing. The 168-unit Savannah asset commanded $25.6 million.
