Forman Capital has closed a $20.5 million bridge loan to fund the opening of Hotel Indigo Huntsville – MidCity, a newly completed 112-key boutique hotel in Huntsville, AL.
The short-term loan refinances a construction loan that the borrower, ViaNova Development, used to build the five-story hotel in the city’s vibrant MidCity District. The property has been granted a certificate of occupancy and is expected to open to guests over the next few weeks. The pet-friendly hotel features an on-site restaurant, meeting space and a fitness center.
The Forman Capital team that worked on the transaction included Ben Jacobson, Scott Mehlman, Ty Regnier and Cameron Fleury.
“Hotel Indigo in Huntsville is a newly built, well-located hospitality asset in one of the Southeast’s fastest-growing markets,” said Mehlman, partner/chief investment officer. “We were able to provide a tailored bridge financing solution that allows the sponsor to begin operating the asset and get on the path towards stabilization.”
Located in one of Huntsville’s premier mixed-use destinations, the property benefits from strong demand drivers, including proximity to major employers, entertainment venues, restaurants and retail amenities. The city continues to experience significant population and economic growth, driven by its expanding technology, aerospace and defense sectors.
“We are bullish on high-quality, limited and select-service hospitality assets in growing markets with strong fundamentals,” said Brett Forman, managing partner. Forman Capital. “ViaNova Development delivered a well-executed project, and we are pleased to provide financing that supports the property’s next phase. We look forward to building a strong relationship with the sponsor.”