Tidal Real Estate Partners, a New York-based development company, has secured bridge financing totalling $113 million. This loan is for the recapitalisation and conversion of the Ann Street Lofts property in Savannah, Georgia, completed in 2023, into the 230-room Margaritaville Hotel Savannah. Peachtree Group provided the three-year, floating-rate loan, which offers two twelve-month extension options.
The undertaking marks a reorientation for the property, which was originally developed as Georgia's first large mass-timber multi-family project. The conversion into a hotel was decided after an in-depth analysis of market conditions and is set to commence later this summer. Completion of the Margaritaville Hotel Savannah is scheduled for summer 2027.
Strategic Reorientation and Market Analysis
Jared Schlosser, Head of Lending at Peachtree Group, highlighted the promising positioning of the property. Savannah attracts over 18 million visitors annually, while the supply of accommodation in the city's historic district is limited. Schlosser explained that the market consistently experiences a significant influx of tourists and conference attendees, representing a good mix of demand drivers.
Walker & Dunlop negotiated the financing, with a team led by Michael Brown and Keith Kurland involved. The future hotel will offer a range of amenities, including a hotel pool area, a Jimmy Buffett's Margaritaville restaurant concept, and a LandShark Bar & Grill. The design aims to appeal to both leisure travellers and local residents seeking dining options and resort amenities.
Efficiency of Conversion
The efficiency of the conversion project benefits from the already existing substantial structure of the guest rooms. Tidal Real Estate Partners had already received a $79 million loan from BGO in May 2024, shortly after the project's completion, to refinance the Ann Street Lofts. Schlosser explained that the main work will focus on the communal areas, meeting rooms, restaurants, and leisure facilities. The scope of the necessary construction work is therefore not extensive, as the basic structure of the rooms is already of high quality. This circumstance made the project particularly attractive from the lender's perspective, as a large portion of the construction-intensive work had already been completed.
