PEACHTREE GROUP SURPASSED the $1 billion mark in commercial property assessed clean energy financing. The company completed 22 CPACE transactions across the U.S. in 2024, breaking its previous record for CPACE originations.
The financing is rooted in hospitality, its largest segment, comprising 45 percent of the portfolio, Peachtree said in a statement.
Atlanta-based Peachtree is led by Greg Friedman, managing principal and CEO; Jatin Desai, managing principal and CFO; and Mitul Patel, principal.
“In 2019, we launched CPACE, and today we’ve surpassed our first billion—a testament to the exceptional team and the strength of Peachtree’s vision,” said Jared Schlosser, Peachtree’s executive vice president of hotel lending and head of CPACE. “Our strong foundation has not only fueled Peachtree’s success in CPACE financing but also solidified its position as a leader in the broader commercial real estate lending market.”
Peachtree was ranked the seventh-largest commercial real estate investor-driven lender in the U.S., according to the latest Mortgage Bankers Association loan origination rankings.
Peachtree's CPACE financing is driven by hospitality, which makes up 45 percent of the portfolio, the statement said. The company has expanded into other sectors, including multifamily, student housing, and senior living, now representing 22 percent of the portfolio, or $220 million. It has also executed CPACE transactions across industrial, mixed-use and office sectors, showcasing its versatility.
“In this challenging lending market, CPACE financing has emerged as a crucial source of liquidity for all commercial real estate sectors,” Schlosser said. “This financing option is becoming increasingly essential as owners face looming debt maturities and limited refinancing opportunities.”
Peachtree said commercial real estate remains in a turbulent period, with trillions in maturing debt and refinancing becoming more difficult due to tighter lending standards from traditional lenders. These challenges are reshaping the industry, driving property owners to seek alternative financing solutions.
“CPACE has been a game-changer, offering long-term fixed-rate financing that lowers the cost of capital while enabling property owners to pursue energy-efficient upgrades with reduced financial strain,” Schlosser said. “Peachtree is proud to lead the way in expanding access to this innovative solution, helping owners across all commercial real estate sectors.”
Schlosser, who joined the company in 2019 and helped develop the CPACE program, was promoted to executive vice president of hotel lending and head of CPACE in April.
CPACE reached $7.2 billion in cumulative U.S. commercial real estate financing in just over a decade, according to PACENation.
In June, Peachtree issued a $40 million retroactive CPACE loan to BLG San Diego LLC for a 147-room AC Hotel in the Gaslamp Quarter. In July, the company originated its first CPACE financing in Tennessee, a $10.7 million loan for a 75,000-square-foot office development in Nashville.
Peachtree's credit team surpassed $1 billion in year-to-date loan originations in October, setting a new benchmark for early-year performance. The firm projects $1.75 billion in originations by the end of 2024.
Peachtree Group Credit provides direct lending for permanent, bridge, and mezzanine loans, CPACE financing, and preferred equity across all commercial real estate sectors.
