Atlas West Group Repositions Investment Strategy to Target Larger San Diego Multifamily Projects
Atlas West Group, a San Diego region urban infill developer with more than $350 million in transaction volume and 50 completed communities, is adjusting its investment strategy to respond to changing conditions in the multifamily real estate market. Founder and CEO Daniel Shkolnik announced that the company will focus on acquiring entitled or partially constructed projects, targeting opportunities that offer greater execution potential and reduced development uncertainty.
Previously, Atlas West Group concentrated on acquiring distressed properties on larger lots and transforming them into boutique apartment communities comprising six to 12 units. Under its revised strategy, the company will pursue projects ranging from 10 to 30 units, including multifamily developments and for-sale residential subdivisions across the San Diego region.
The shift reflects changing market conditions, higher borrowing costs, increased competition in the boutique apartment segment, and the company’s growing capacity to manage larger developments.
“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.”
Changing Conditions Reshape Investment Priorities
Atlas West Group’s revised approach is driven by several factors affecting the San Diego multifamily market. According to the company, the number of boutique infill developments similar to those it previously pursued has increased significantly. Shkolnik noted that some projects in this segment have been poorly planned or executed, contributing to excess inventory and making investment decisions more challenging.
At the same time, elevated interest rates have increased financing expenses and reduced the financial viability of many smaller development projects. Higher borrowing costs can affect construction budgets, debt servicing, expected returns, and the ability of developers to secure financing on favorable terms.
Broader economic uncertainty has also encouraged the company to prioritize investments with shorter development timelines. By targeting projects that have already secured the necessary entitlements or progressed into construction, Atlas West aims to reduce exposure to early-stage planning and approval risks.
“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.”
The revised strategy allows the company to concentrate on opportunities where significant preliminary development work has already been completed. This approach is intended to help the business apply its construction management, operational, and asset management experience while limiting some of the uncertainties associated with securing project approvals.
Focus on Entitled and Mid-Construction Developments
Under the new investment strategy, Atlas West Group will seek residential projects with 10 to 30 units across the San Diego region. The target opportunities include both multifamily communities intended for rental housing and subdivisions designed for individual home sales.
Entitled projects have generally progressed through key land-use approval stages, although additional permits or requirements may still apply. Mid-construction properties have advanced further, allowing an incoming investor to focus on completing the development rather than managing the entire process from the beginning.
For Atlas West, these opportunities align with its stated preference for projects where execution, construction management, and operational improvements can create value.
The company also believes its existing platform, experienced team, and increased scale provide the foundation for pursuing larger projects than those that historically formed the core of its investment strategy.
Rather than abandoning its urban infill development experience, Atlas West is adjusting how it applies that expertise in a market where financing conditions and project availability have changed.
Refinancing Demonstrates Financial and Operational Management
Despite the challenging real estate environment, Atlas West Group has continued to manage its existing portfolio and maintain relationships with lenders. The company recently refinanced five properties, retiring $11.5 million in property-level debt and reducing borrowing costs by 15%, according to the announcement.
The refinancing represents an important development for the company as elevated interest rates continue to put pressure on property owners and developers. Access to financing remains a significant consideration for real estate businesses, particularly those managing construction projects and income-producing properties.
Reducing borrowing costs can help improve cash flow and support financial flexibility, although the overall benefits depend on the terms of the refinancing and the performance of the underlying assets.
Shkolnik described the transaction as evidence of the company’s execution and asset management capabilities.
“It shows our execution ability,” he 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 refinancing also highlights the importance of maintaining lender relationships as real estate companies navigate changing credit conditions. For Atlas West, effective debt management is part of its broader effort to position the business for its next phase of investment.
Development Pipeline Across San Diego
Alongside its investment strategy changes, Atlas West Group continues to advance its existing residential development programme. The company currently has five communities under development in the College Area, Mid-City, and Clairemont neighborhoods of the San Diego region.
Together, these projects represent more than 50,000 square feet of housing under construction. The developments form part of the company’s ongoing effort to deliver residential properties in established urban areas where infill construction can add housing within existing communities.
Atlas West’s current portfolio is valued at approximately $100 million, according to the announcement. The company also reports more than $350 million in cumulative deal volume and a track record of 50 completed communities.
These figures reflect the scale of its development and investment activities, as well as the operational experience it intends to apply to larger acquisition opportunities.
Trent Hullen, vice president of Atlas West Group, said the company remains active in delivering housing while evaluating additional projects.
“We’re incredibly busy constructing housing San Diegans can afford, and we have a lot of large projects on the horizon,” Hullen said. “We’re excited about what the future holds.”
Preparing for the Next Market Cycle
Atlas West Group’s strategic repositioning reflects a broader need for real estate investors to adapt to changing financing conditions, construction economics, and local housing supply. By focusing on entitled and mid-construction developments, the company aims to prioritize execution opportunities while reducing its exposure to early-stage development risks.
Its ongoing construction programme, refinancing activity, and revised acquisition criteria form part of a strategy designed to balance current operations with future growth.
As the San Diego multifamily market continues to evolve, Atlas West will focus on selectively acquiring residential projects that align with its capabilities and investment priorities. The company’s next phase will center on disciplined property selection, effective asset management, and the delivery of housing across the region.
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