Thursday September 12th, 2013 - 10:05AM
BIRMINGHAM, AL—Capstone Development, LLC, acquired the 129-room Residence Inn Birmingham Downtown at UAB, located here at 821 20th St. South.
Capstone did the deal in a joint venture with an undisclosed institutional investor. The JV acquired the hotel for $20 million on an all-cash basis from Birmingham Hospitality Properties, LLC, an affiliate of Fremont Realty Capital, a San Francisco-based private investment company.
HFF represented the seller and was led by Senior Managing Director/Head of HFF’s Hotel Group, Daniel C. Peek, Managing Director Holden Lim and Director Max Comess, and included hospitality real estate analysts Chris Lingerfelt and Alexandra Lalos.
The hotel will continue to be managed by Crescent Hotels & Resorts.
The Residence Inn Birmingham Downtown at UAB is in the historic Five Points South dining and entertainment district, and is proximate the University of Alabama medical campus and the downtown central business district. The hotel is approximately six miles from the Birmingham Shuttlesworth International Airport.
The seven-story, brick-façade building was completed in 2009 and features an outdoor swimming pool, fitness center, business center, breakfast area and sundries shop.
“This transaction represents an outstanding opportunity to acquire a high-quality, premium-branded hotel in a strong market with multiple sources of lodging demand," stated Norman Jenkins, president/managing partner of Washington, D.C.-based Capstone Development.
Capstone Development Managing Partner Darren Linnartz added, “The Residence Inn Birmingham fits well with our core investment strategy of acquiring well-located hotel properties with stable operating cash flows that also offer the potential for us to build future value."
The Residence Inn Birmingham is the second hotel acquired by Capstone Development and its affiliates this year; it joins the Courtyard by Marriott Washington, D.C. at Dupont Circle.
Capstone also is co-developing the 1,175-room Marriott Marquis, currently under construction in Washington, D.C. The hotel is slated to open in May.