JLL Capital Markets announced that it arranged $4 million in acquisition financing for Alice Hall, a 14-unit apartment building with plans to be converted into a short-term rental in Savannah, Georgia.
Alice Hall is a three story, 20,000-square-foot apartment building that includes 10 two-bedroom units and four three-bedroom units, with secure parking. Built in 2007, the property has nine-foot ceilings, expansive walk-in closets, stainless steel appliances and granite countertops. The units will be converted from existing long-term tenancy to short-term and flexible-term furnished apartments. The addition of hotel-like services and technology will be added to enhance the guests’ experience. Completion of the project is set for Q3 2024.
The property is ideally situated within Savannah’s highly desirable Historic District. In 2022, Savannah was included in Travel & Leisure’s “Top 5 Cities to Visit in the U.S.” and “Best Weekend Destination to Visit” by Global Traveler, with over 15 million visitors annually.
The JLL Capital Markets Debt Advisory team was led by Director Jonah Aelyon, Senior Production Associate Sarah Murphy and Associate Ethan Habecker.
“JLL is pleased to have helped The AltAccom Group’s inaugural acquisition,” said Aelyon. “The historic district of Savannah, Georgia will benefit from their creative approach to hospitality and their new capital partner will allow them to realize their vision.”
Terry Strongin, founding partner of The AltAccom Group, LLC added, “JLL delivered as promised with creativity and focus. The acquisition of Alice Hall is the first of many planned acquisitions of apartment buildings that will be converted to serviced apartments (aka aparthotels).”
“We believe that the serviced apartment sector is an emerging real estate asset class capable of delivering outsized returns and is rapidly becoming recognized and accepted by institutional investors looking for an attractive risk adjusted return”, Strongin said.
JLL represented the borrower, The AltAccom Group, and secured the three-year loan with two one-year extensions from the lender. The AltAccom Group is a leading company in the serviced apartment space and partners with capital providers to acquire apartment buildings located in urban markets to operate as short-term furnished apartments and corporate housing.