Peachtree Group Thrives Amid Debt Market Dislocation, Anticipates Deploying $1.0 Billion in Real Estate Credit Investments

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Originates a $102.9 million bridge loan, marking a significant milestone in the firm’s history

ATLANTA, March 18, 2024–(BUSINESS WIRE)–Peachtree Group (“Peachtree”), a diversified commercial real estate investment firm, announced it has closed approximately $660 million in credit investments since Dec. 1, 2023, with an additional $350 million anticipated closing over the next 30 to 45 days.

The credit investments primarily encompass originations for hotels, multifamily, industrial and student housing.

In February, Peachtree closed one of the largest individual credit transactions in the firm’s history with a $102.9 million three-year loan to recapitalize a 350‐room Marriott dual-brand AC Hotel Sunnyvale Moffett Park and TETRA Hotel, Autograph Collection in Sunnyvale, Calif.

“We are witnessing heightened activity in response to the anticipation of sustained elevated interest rates and continued reductions in bank exposure. The pressing need to refinance maturing debt, estimated at $2.8 trillion in U.S. commercial real estate debt by the end of 2028, is a growing concern. Commercial real estate stakeholders are grappling with the challenges of increased capital costs and constrained liquidity, particularly in securing capital for acquisitions, recapitalizations and development initiatives,” said Greg Friedman, Peachtree Group’s managing principal and CEO.

Peachtree Group Credit, formerly Stonehill, ranked as the 8th largest U.S. commercial real estate hotel lender by the Mortgage Bankers Association in its last loan origination rankings. As a direct commercial real estate lender, it offers permanent loans, bridge loans, mezzanine loans, commercial property-asset clean energy (CPACE) financing and preferred equity investments across all commercial real estate sectors, with its origins in the hospitality industry.

Other notable credit transactions closed over the past 90 days:

  • $40.8 million first mortgage loan for the construction of a dual-branded Residence Inn and Home2 Suites in Montgomery, Ala.

  • $46.0 million in Commercial Property Assessed Clean Energy (“CPACE”) financing for the Thompson Hotel in Palm Springs, Calif.

  • $36.2 million first mortgage loan for Courtyard by Marriott in Chevy Chase, Md.

  • $40.6 million first mortgage loan for Home2 Suites in Charlotte, N.C.

  • $34.5 million first mortgage loan for a multifamily complex in Gainesville, Fla.

  • $17.5 million first mortgage loan for student housing in Athens, Ga.

About Peachtree Group

Peachtree Group is a vertically integrated investment management firm specializing in identifying and capitalizing on opportunities in dislocated markets, anchored by commercial real estate. Today, we manage billions in capital across acquisitions, development, and lending, augmented by services designed to protect, support and grow our investments. For more information, visit www.peachtreegroup.com.

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Contacts

Charles Talbert
678-823-7683
ctalbert@peachtreegroup.com