Peachtree Group Provides $32M Construction Loan for Alabama Hotel 

Spandrel Development Partners has sealed $32.36 million of construction financing to develop a Marriott-branded hotel in Huntsville, Ala., Commercial Observer has learned.

Peachtree Group originated the three-year loan with two 12-month extension options for the  developer’s planned 154-room AC Hotel by Marriott property to be built within Huntsville’s 

Bridge Street Town Centre. Spandrel acquired the 4.67-acre site located inside Cummings Research Park in September 2025.

Jared Schlosser, head of credit originations at Peachtree Group, said the hotel will benefit from close proximity to nearby demand drivers like the U.S. Space & Rocket Center, the University of Alabama-Huntsville campus and Redstone Arsenal, a U.S. Army base. Schlosser noted that the ongoing war in Iran will only amplify demand in Huntsville. 

“The largest bomb manufacturers are in Huntsville and because so many of those got depleted, it’s just going to lead to huge demand and government demand which pays good rates for these types of hotels,” Schlosser said. “There’s probably no market that, fortunately or unfortunately, benefits more from what’s happened overseas than Huntsville.” 

Schlosser added that the Huntsville area has seen economic expansion over the past decade with a 23 percent employment growth. That growth was further boosted by the Jeff Bezos-founded aerospace company Blue Origin’s recent expansion in Cummings Research Park, along with Eli Lilly and Company building a new $6 billion manufacturing facility. Another tailwind benefiting the project, according to Schlosser, is the U.S. Space Command’s decision to move forward with developing a permanent headquarters at Redstone Arsenal. 

Spandrel Development Partners did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.