Peachtree to invest $1 billion in real estate credit

PEACHTREE GROUP, A commercial real estate investment firm with a $6.4 billion portfolio, has secured approximately $660 million in credit investments since Dec. 1, with an additional $350 million expected to close within the next 30 to 45 days. These investments focus on hotels, multifamily, industrial, and student housing, Peachtree said in a statement.

“We are witnessing heightened activity in response to the anticipation of sustained elevated interest rates and continued reductions in bank exposure,” said Greg Friedman, Peachtree Group’s managing principal/CEO. “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.”

Peachtree recently closed one of its largest individual credit transactions to date, securing 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, California, the statement added.

Other credit transactions closed over the past 90 days include:

• $40.8 million first mortgage loan secured for the construction of a dual-branded Residence Inn and Home2 Suites in Montgomery, Alabama
• $46 million CPACE financing secured for the Thompson Hotel in Palm Springs, California
• $36.2 million first mortgage loan secured for Courtyard by Marriott in Chevy Chase, Maryland
• $40.6 million first mortgage loan secured for Home2 Suites in Charlotte, North Carolina
• $34.5M first mortgage for multifamily complex, Gainesville, Florida
• $17.5 million first mortgage loan for student housing in Athens, Georgia

Peachtree Group's credit division offers permanent loans, bridge loans, mezzanine loans, CPACE financing, and preferred equity investments across commercial real estate sectors, originating from the hospitality industry.

In February, Peachtree also concluded its third hotel property acquisition, structured as a Delaware Statutory Trust, with the purchase of the 98-key Hilton Garden Inn in Jackson, Tennessee.