Quick Facts

Project Name
AC Hotel
CDE
Greenville New Markets Opportunity II, LLC
  (GNMO II)
Total Development Cost
$46,200,000
GNMO II Allocation
$10,000,000
Location
225 W Main Street
Spartanburg, SC 29306
Developer
OTO Development
Square Footage
97,668
Leveraged Lender
U.S. Bank, N.A.
NMTC Investor
U.S. Bancorp Community Development Corporation
Permanent Jobs
30 Direct
27 Indirect/Induced
Construction Jobs
100 Direct
230 Indirect/Induced
Low-Income Community
Poverty Rate: 66.6%
MFI: 14.24%
Unemployment Rate: 23.7%
Unemployment Ratio: 3x
State EZ
Appalachian Regional Commission (ARC)
  Distressed Area
FEMA Disaster Area
Financing Complete
February 2016

AC Hotel


Spartanburg, SC

Project

Spartanburg, SC has historically been known as “Hub City” due to its prevalence of railways. The county is also located at the crossroads of heavily traveled Interstates 85 and 26, which has brought suburban growth to the region. But downtown Spartanburg — located miles from the interstates — has struggled to thrive over the years.

In early 2016, locally based OTO Development closed financing on the construction of a $46.2 million, 114-room full service AC Hotel in downtown Spartanburg, SC. A brand of Marriott, this AC Hotel property will feature a signature AC Kitchen restaurant, fitness center, business center, approximately 2,500 square feet of meeting space, and typical back-of-the-house facilities. 

Community Impact

GNMO II’s investment will support 130 direct quality jobs, with permanent jobs paying a wage 261% higher than the LIC’s per capita income of $3.32 per hour. To encourage accessibility of jobs to LIC residents, OTO Development will establish an apprenticeship program with Apprenticeship Carolina and the local technical college with a goal of 10 enrollees in the program throughout the 7-year NMTC compliance period.  The importance of quality job creation in this community cannot be overestimated, with area Median Family Income 14.24% of the national average.

The project is being developed by OTO Development in an effort to ignite a meaningful revitalization of downtown Spartanburg. In 2002, when efforts to rebuild the city’s central business district began, “downtown Spartanburg was like a ghost town”, according to an article in The Spartanburg Herald Journal. Since then, economic growth in the area has gained some momentum, but a number of buildings remain vacant and other obsolete structures have been demolished and await redevelopment.  The AC Hotel will serve as a catalyst for the community and become a visual beacon and gateway anchor to the west end of downtown.

“For several years, the city has been working toward a vision based on the idea that a vibrant, walkable, livable, entrepreneurial, fun, and economically diverse central business district is both achievable and essential. This project is further confirmation that these collaborative efforts are working.”

– Ed Memmott, Spartanburg City Manager

“This hotel will have a tremendous impact on downtown and future development. We appreciate the strong faith OTO Development and the Johnson family of companies have in our plan for downtown.”

– The Honorable Junie White, Mayor of Spartanburg

For more information contact:

Tammy C. Propst | 864.271.2737 | tpropst@taxadvantagegroup.com