Overview

Matheson Capital is acquiring Residences at St. George, a 248-unit apartment property located in Savannah, GA. The property was built in two phases in 1986 and 1999. St. George has an average in-place rent of $1,338, and currently boasts 94% occupancy. The property is being acquired with assumption debt at 2.95% interest rate, for $156k/unit, a basis in line with several 4Q23 comparable sales in the market, which all required new acquisition financing. Matheson Capital intends to complete proven value-add renovations on the nearly 45% of units in classic condition, and complete much needed exterior capital improvements, in order to capture outstanding loss to lease. Matheson’s existing relationship with the seller provided an opportunity to acquire this property off-market, and the ability to acquire it with assumption debt provides our investors with strong cash flow day 1 as a result of low debt burden. Residences at St. George marks Matheson Capital’s 15th acquisition in the Southeast, and our sixth collaboration with Stintino Management.