Expensive financing and economic uncertainty have given investors plenty of reasons to hold off on making big purchases, but for one of Georgia's luxury apartment complexes, a high-profile buyer swooped in with no hesitation.
Olympus Property, a Fort Worth, Texas-based multifamily investment firm, closed a $76.5 million deal with Blackstone to acquire the Alleia Luxury Apartments complex in one of Savannah's most affluent pockets. At more than $233,230 per unit, the purchase of 73 Highlands Blvd. marked one of the highest prices paid on a per-unit basis among recent multifamily deals in the area, a feat that earned it a 2024 CoStar Impact Award for sale/acquisition of the year, as judged by real estate professionals familiar with the market.
Multifamily sales in Savannah and beyond have dipped in response to rising interest rates and myriad hurdles to closing deals. However, Olympus' purchase — and at a premium price tag, no less — underscores the optimism some buyers have in the market's ability to make a quick rebound.
The Alleia deal "speaks to Savannah's anticipated population growth and is a sign of opportunity in the value" of the city's multifamily market, CoStar Impact Award judge Scott Amoson, an associate field research director with CBRE, said of Olympus' latest purchase.
The deal comes on the heels of another high-profile multifamily acquisition the Texas investor closed in a high-end Savannah neighborhood, further underscoring its focus on strengthening its stake in the region.
About the Project: Construction on the 328-unit Alleia Luxury Apartments wrapped up in early 2021 alongside a slew of other high-end developments that have landed in the Savannah market over the past several years. The 23.4-acre, upscale property includes features such as an outdoor lounge, pool area with cabanas, a game room and fitness center, and a location with easy access to one of Georgia's largest employment hubs.
What the Judges Said: Last year "was not a great year for multifamily, so securing a historic price per unit has a positive impact on sentiment and signals that there is demand in Savannah for Class A rentals," CoStar Impact Award judge Neil Matthee, a Newmark research manager, said of the deal.
They Made It Happen: A team of CBRE brokers including Jim Sewell, David Lansbury, Erika Maston, Colleen Hendrix and Shea Campbell marketed and secured the buyer on behalf of Blackstone, the seller in the deal with Olympus Properties.
CoStar Senior Market Manager Dave Blake contributed to this report.