Argosy Real Estate Partners Exits AC Marriott Downtown Atlanta
On July 13, 2017, Argosy Real Estate Partners III, L.P. and its parallel funds (“AREP III”), funds managed by Argosy Real Estate Partners, exited their investment in the AC Hotel by Marriott, an 11-story, 255-key hotel located in downtown Atlanta, Georgia.
In August 2015, AREP III partnered with Peachtree Hotel Group to acquire the property, a 260-room Holiday Inn, in an off-market transaction negotiated with a distressed seller in default under its loan and franchise agreement. The Partnership acquired the property with the intent to convert it to a 255-key AC Hotel by Marriott, a fast-growing premium select-service brand being rolled out throughout the U.S., with over 23 hotels currently open and approximately 80 in the development pipeline. The property is situated on a 1.1-acre site adjacent to the 21-acre Centennial Olympic Park, the center of tourism-related activity in downtown Atlanta. The property’s location provides easy pedestrian access to major entertainment venues and corporate demand generators including the Georgia World Congress Center (convention center), Georgia Dome, Phillips Arena, and the Georgia Aquarium.
Peachtree operated the property as a Holiday Inn from acquisition through June 2016 while finalizing plans and approvals for conversion to an AC Hotel, at which point the Holiday Inn franchise was terminated and redevelopment commenced. The property operated as the Inn at Centennial Park during the 11-month renovation and officially reopened as an AC Hotel on May 16, 2017. The property was successfully sold after a 24-month hold period.