Target Information

Berkadia has successfully orchestrated debt and equity financing for a new Class A garden-style apartment community called Mosaic Pooler. This development, initiated by Bayline Group, will be situated in the vibrant Mosaic Town Center, a 170-acre mixed-use area in Pooler, Georgia, just outside downtown Savannah. Upon completion, scheduled for May 2027, the community will comprise a total of 333 apartments, offering a diverse range of one-, two-, and three-bedroom units, with a generous average size of nearly 1,000 square feet.

The site for Mosaic Pooler spans 12 acres and was acquired in 2023. Its strategic location approximately one mile from Interstate 16 and 14 miles from downtown Savannah ensures accessibility to essential employment hubs, contributing to the strong demand for housing. The project will also feature unique design elements, including three-story Carriage Houses with ground-floor garages.

Industry Overview

The multifamily housing market in Savannah, Georgia, is experiencing significant growth, driven by a surge in demand for affordable workforce housing. As more residents are drawn to the area due to employment opportunities, primarily from industries such as automotive and healthcare, the need for quality affordable housing is becoming increasingly critical. Recent developments, such as the opening of the Hyundai auto plant and the new HCA Healthcare campus, are expected to further boost the local economy.

Additionally, the Port of Savannah serves as a pivotal economic driver, contributing to job creation and attracting a workforce that seeks nearby housing options. As the city continues to expand, urban planners and developers are focusing on mixed-use communities that integrate residential, commercial, and recreational spaces to meet the changing needs of its residents.

The multifamily market, particularly in suburban areas like Pooler, has shown resilience even amidst economic fluctuations. The increasing trend of remote work has encouraged individuals to seek larger living spaces, which further supports the development of suburban properties. As the demand for multifamily units rises, investors are recognizing the potential for profitable returns in this sector.

With ample land availability and a focus on sustainable development, the Savannah area presents unique opportunities for future growth in the multifamily housing market. Regions that offer high-quality amenities and attractive living conditions, like Mosaic Pooler, are well-positioned to capture the attention of prospective renters looking for modern housing solutions.

The Rationale Behind the Deal

The financing secured by Berkadia for Mosaic Pooler is a testament to the growing demand for quality housing in Georgia's Savannah metropolitan area. Investors, including Bank OZK and FCP, have recognized the potential of this project, taking into account the favorable market conditions and the solid track record of the sponsor, Bayline Group. Their success in previous developments has established credibility and trust, making this investment opportunity appealing.

The decision to pursue a mixed-use development further enhances the project's attractiveness. With a focus on community building and a range of onsite amenities, Mosaic Pooler is set to meet the needs of a diverse population, particularly those seeking affordable options in a rapidly growing area.

Information about the Investor

Berkadia, a key player in the commercial real estate market, provides a broad spectrum of investment and advisory services. With a notable track record in securing financing, including debt and equity solutions, Berkadia brings deep expertise to multifamily housing projects. The company’s team involved in this transaction includes seasoned professionals such as Senior Managing Director Mitch Sinberg and Managing Director Scott Wadler, who have extensive experience navigating complex financing landscapes.

Under Berkadia’s guidance, Bayline Group has secured the necessary funds to initiate the Mosaic Pooler development. Their collaborative approach with key financial partners ensures a smooth execution of the project, reflecting a solid understanding of market dynamics and financial structuring.

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This transaction exhibits the potential for a strong investment opportunity given the ongoing growth in the Savannah metropolitan area. The presence of significant employment drivers, such as the new Hyundai auto plant and healthcare facilities, creates a robust market for housing demand, which should bode well for rental income in the future.

Additionally, the attractive design and comprehensive amenities of Mosaic Pooler are likely to resonate with tenants seeking quality living spaces. With a focus on affordable housing tailored for the workforce, this project addresses a critical market need, thereby enhancing its investment viability.

Furthermore, the experienced backing of Berkadia and the reputable standing of Bayline Group in the real estate sector instills confidence in the project's successful completion and performance. Their ability to attract favorable financing conditions indicates a well-planned development strategy, which is crucial for minimizing risks and maximizing returns.

In conclusion, investing in Mosaic Pooler appears promising, given the market conditions and the increasing demand for quality, affordable housing in the Pooler area. This project not only stands to benefit from favorable economic trends but also plays a vital role in addressing housing shortages, making it a commendable investment opportunity.

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