Peachtree Lends $113M on Apartments’ Conversion to Margaritaville Hotel Savannah 

Tidal Real Estate Partners is “waving” hello to the opportunity to convert a Savannah, Ga., multifamily building into a Margaritaville-branded hotel.

The New York City development firm just  sealed $113 million of bridge debt to recapitalize and repurpose the 2023-built Ann Street Lofts property into the 230-key Margaritaville Hotel Savannah, Commercial Observer has learned

Peachtree Group originated the three-year floating-rate loan with two 12-month extension options for the multifamily-to-hospitality conversion project in Downtown Savannah. The conversion project is slated to commence late this summer. 

Jared Schlosser, head of credit originations at Peachtree Group, said after developing Ann Street Lofts as Georgia’s first large-scale mass timber multifamily project, Tidal opted to pivot the 232-unit property to hotel use after evaluating market conditions. Schlosser noted that the property is positioned for success given Savannah’s strong tourism numbers, with more than 18 million annual visitors coupled with a limited lodging supply within the city’s Historic District.

“There’s a lot of development happening in this immediate area and a lot of planned development happening in this immediate area,” Schlosser told Commercial Observer. “The market continues to have a big influx of tourism and conferences so there is a good mix of demand drivers.”

Walker & Dunlop negotiated the debt with a team led by Michael Brown and Keith Kurland.

The Margaritaville Hotel Savannah is slated to debut in summer 2027. It will include a hotel pool deck, a Jimmy Buffett’s Margaritaville restaurant concept, and a LandShark Bar & Grill. Schlosser said the hotel will be designed for both leisure travelers as well as local residents seeking food, beverage and resort-style amenities.

 Tidal Real Estate Partners previously secured a $79 million loan from BGO to refinance Ann Street Lofts in May 2024 shortly after the project’s completion. 

Schlosser said the conversion project will be manageable given that the rooms are already largely established. Most work will involve the common areas, meeting rooms, restaurant and amenity spaces.

“These are beautiful rooms and they don’t need a ton of a ton of property improvement in order to convert them to hotel rooms, so the level of construction is not heavy,” Schlosser said. “That’s what made the deal very attractive as a lender is that most of the hard work was already done.”

Tidal Real Estate Partners and Walker & Dunlop did not immediately return requests for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.