The three-year floating-rate loan includes two 12-month extension options and was provided to repeat borrower Tidal Real Estate Partners. Originally developed by Tidal in 2023, Ann Street Lofts is Georgia’s first large-scale mass timber multifamily project. After evaluating market conditions, the sponsor determined the property’s highest and best use was hospitality, capitalizing on Savannah’s strong tourism fundamentals and limited supply of large hotels within the city’s Historic District.
Conversion is underway and upon completion, the property will reopen as the 230-key Margaritaville Hotel Savannah. Planned amenities include a LandShark Bar & Grill, the Margaritaville brand’s signature restaurant concept, along with what is expected to be the largest hotel pool deck in Savannah. The hotel is designed to appeal to both leisure travelers and local residents through its food and beverage offerings and resort-style amenities.
The conversion also benefits from meaningful supply constraints. In 2018, Savannah adopted hotel development restrictions within the Historic District that effectively limit the construction of new hotels larger than 74 keys. Once complete, Margaritaville Hotel Savannah will be one of only five hotels in the market with more than 100 rooms.
“This is a unique conversion because the property was originally developed as multifamily at a time when a hotel wasn’t permitted under the zoning,” said Jared Schlosser, Head, credit originations and commercial PACE, Peachtree Group. “Once that changed, it created an opportunity to reposition an already high-quality asset into what we believe is its highest and best use. The rooms require relatively little work, allowing the investment to focus on the amenities and common areas that will make this a true Margaritaville destination. With Savannah’s strong mix of leisure, group and business demand, we think the property is exceptionally well positioned.”
The property is located just south of River Street and within walking distance of Savannah’s Historic District, The Grey restaurant, the Savannah College of Art and Design, Johnny Mercer Theatre and numerous museums, restaurants and public squares.
Savannah welcomes more than 17 million visitors annually, generating an estimated $4.1 billion in economic impact. The city draws hundreds of thousands of visitors each year for St. Patrick’s Day celebrations, the Savannah Film Festival and a steady calendar of cultural events while its historic architecture, restaurants and entertainment districts support year-round visitation.
Tags: Jared Schlosser, Peachtree Group Tidal Real Estate Partners
