Peachtree Group anticipates deploying $1B in real estate credit investments

Peachtree Group, a diversified commercial real estate investment firm, 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, CA.

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

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, AL
  • $46.0 million in Commercial Property Assessed Clean Energy (CPACE) financing for the Thompson Hotel in Palm Springs, CA
  • $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, NC