Atlas West Group Shifts Investment Strategy as San Diego Region Multifamily Market Enters New Cycle

San Diego region developer refinances $11.5 million in property-level debt, cuts borrowing costs 15% as firm pivots to larger entitled and mid-construction projects

SAN DIEGO--(BUSINESS WIRE)--Atlas West Group, a San Diego region urban infill developer with more than $350 million in deal volume and 50 completed communities, is repositioning its investment strategy to capitalize on a shifting multifamily market, founder and CEO Daniel Shkolnik announced today.

After years of acquiring distressed properties on large lots and converting them into six- to 12-unit boutique apartment communities, Atlas West is pivoting. It’s now buying entitled or mid-construction projects ranging from 10 to 30 units — both multifamily communities and for-sale subdivisions — across the San Diego region.

"This is a systematic shift in how we acquire properties," Shkolnik said. "Instead of casting a wide net, we're being far more surgical about what we pursue."

The strategic repositioning is driven by four factors. First, the local market has seen a significant increase in the type of boutique infill projects Atlas West pioneered, with many poorly planned and executed, creating a glut of inventory in that segment. Second, elevated interest rates have made most of those projects financially unworkable. Third, current macro conditions favor investments with shorter duration. Fourth, Atlas West has built the platform, team, and scale to pursue larger, more substantial projects.

"We're not looking to take entitlement risk right now," Shkolnik said. "We want projects where the hard work is done and we can deploy our execution capability."

Rising inflation and elevated interest rates are reshaping the multifamily investment landscape nationwide, and the San Diego region is no exception. For Atlas West, navigating that environment has required both strategic discipline and strong lender relationships.

That execution capability was on full display this summer. Atlas West recently refinanced five properties, retiring $11.5 million in property-level debt and reducing borrowing costs by 15%, a significant achievement in an environment where most developers are struggling to access capital at any cost.

"It shows our execution ability," Shkolnik said. "It demonstrates our asset management capability in controlling costs and increasing revenues in a turbulent environment. We have secured excellent rates despite the market running away."

The strategic shift comes as Atlas West continues to expand its footprint across the San Diego region. The company currently has five communities under development in the College Area, Mid-City, and Clairemont, with more than 50,000 square feet of housing under construction. Its current portfolio stands at $100 million.

"We’re incredibly busy constructing housing San Diegans can afford, and we have a lot of large projects on the horizon," said Trent Hullen, vice president of AWG. "We’re excited about what the future holds."

About Atlas West Group

Atlas West Group (AWG) is a San Diego region urban infill developer specializing in attainable multifamily and for-sale housing built for teachers, firefighters, young families, and others. The company has completed more than 50 communities totaling over $350 million in deal volume, served more than 2,000 residents, and currently has more than 100,000 square feet of housing in the pipeline. For more information, visit atlaswestgroup.com.

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