AC & Element Hotels

Private credit strategy has the potential to generate returns similar to equity investments but with lower leverage and reduced last-dollar risk.
Property Type
Investment Type
Date of Investment
Birmingham, AL
Square Footage
Loan Type
Loan to Value
Loan to Cost
Total Origination

Proximate to Demand Drivers

The Hotels are on 1ˢᵗ Street North in downtown Birmingham within the Central City/Financial District. The site is also proximate to several demand generators: University of Alabama Birmingham, UAB Hospital, Birmingham Jefferson Complex, Regions Financial Corporation, Alabama Power Company, Protective Stadium, Regions Field and Innovation Depot.

Strong Sponsor

Ascent Hospitality, a repeat borrower of six prior loans, all paid as agreed, is known to have a consistent operating track record. They have strong ties to the market and currently own approximately 14.7% of the total supply in the Birmingham CBD submarket.

Strong Basis

Based on recent transactions involving similar assets in Birmingham and other primary markets within Alabama. The average sales price equates to approximately $215K/key, representing a 48.7% premium to the basis of the loan.