Peachtree Deploys $1B in CRE Credit Amid Debt Market Dislocation
It expects to close $350 million over the next six weeks.
Peachtree Group says 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.
“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 and CEO in prepared remarks. “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.”
Last month, 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.
Other 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.