$40M construction financing secured for hotel development at Auburn University

CHICAGO – Nov. 15, 2022 – JLL’s Hotels & Hospitality Group announced today that it has arranged $40 million in construction financing for the development of Graduate Auburn, a 177-key hotel in Auburn, Alabama.

JLL worked on behalf of the sponsor, Adventurous Journeys Capital Partners (“AJ Capital”), in securing the five-year, floating-rate loan with Southern States Bank.

Upon completion, the hotel will offer a mix of traditional guestrooms and suites, approximately 10,000 square feet of flexible meeting and event space and two food and beverage outlets, including a rooftop lounge with an outdoor terrace featuring panoramic views of the Auburn campus. Graduate Auburn, designed by Hartshorne Plunkard Architects and AJ Capitals’ in-house interior design team, will reference the storied history of Auburn University and provide a unique aesthetic that will appeal to university visitors and locals alike. Graduate Auburn will join a collection of 35 other Graduate Hotels and will be the brand’s seventh location in the SEC conference.

Graduate Auburn will be located on Magnolia Avenue across from the 1,800-acre Auburn University Campus and steps away from College Street and the historic Toomer’s Drugs. Auburn University is one of the largest universities in the south, known for its NCAA Division I college athletics, Greek life and strong interdisciplinary research programs and partnerships. Auburn is a quintessential college town comprised of local shops, green spaces, parks and golf courses surrounding the campus. The town is located less than 60 miles northeast of Montgomery and 100 miles southwest of Atlanta. The University is the primary economic driver in the metro area, employing roughly a quarter of the city’s total workforce. In addition, the area has a strong industrial and manufacturing presence, including mid-sized, high-tech manufacturing and research firms.

The JLL Hotels & Hospitality team representing the sponsor was led by Executive Vice President Jeff Bucaro and Senior Managing Director Danny Kaufman.

“Graduate Auburn will enjoy a substantial competitive advantage as the premier hotel at Auburn University,” said Bucaro. “The combination of amenities, as well as its premier location, will position the hotel as a top choice for Auburn University-related travel.”

JLL’s Hotels & Hospitality Group has completed more transactions than any other hotels and hospitality real estate advisor over the last five years, totaling $83 billion worldwide. The group’s 350-strong global team in over 20 countries also closed more than 7,350 advisory, valuation and asset management assignments. Our hotel valuation, brokerage, asset management and consultancy services have helped more hotel investors, owners and operators achieve high returns on their assets than any other real estate advisor in the world.

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AJ Capital is a dynamic private equity investment and development organization with a diverse portfolio of hotels, multi-family apartments, creative office, single-family rental, retail and entertainment venues across the United States and United Kingdom. AJ Capital’s core competency is the creation of distinctive, locally inspired properties set in high growth and high culture environments with diverse demand generators. Its experienced team leverages their hospitality-centric approach to design, programming, and place-making to drive long-term value creation. The company has specific expertise in the execution of major adaptive re-use projects with historical significance and ground-up development. 

Southern States Bank is an Alabama state chartered commercial bank founded in 2007. The bank is headquartered in Anniston, Alabama with 13 full-service banking facilities located in Alabama and Georgia, and two loan production offices in Atlanta. The bank is a full-service banking institution, which offers an array of deposit, loan and other banking-related products and services to businesses and individuals in its communities. Visit them at southernstatesbank.net or on Facebook to learn more.