Hilton Garden Inn, Phoenix AZ

Property Type
Hotel
Investment Type
Credit/Lending
Brand
Hilton
Date of Investment
March 2024
Location
Phoenix, AZ
Keys
125 keys
Units
Square Footage
Credit/Lending
Bridge Loan
Credit/Lending
Bridge Loan
Credit/Lending
63%
Credit/Lending
$12.5MM

With Maturity Looming, Peachtree Helps Execute Business Plan Including Hotel PIP

Peachtree Group worked with the Sponsor to pay off its maturing loan while executing a business plan to upgrade its property to better compete in the marketplace and retain its Hilton flag.

As an experienced hotel lender specializing in creative financing solutions, Peachtree originated a $12.5MM bridge loan for a 126-room Hilton Garden Inn in Phoenix, Ariz., with a repeat Sponsor.  

In 2014, Peachtree actively supported the Sponsor by providing a mezzanine loan, complemented by a senior loan from another lender. The mezzanine loan was repaid in December 2019, while the senior loan underwent refinancing as a component of this transaction.

The hotel, which opened in 2008, recently received an unacceptable Franchise Quality Assurance (FQA) score just as the Sponsor's franchise agreement with Hilton was soon to expire. 

The Sponsor will use a portion of the loan proceeds to complete an estimated $4.0MM property improvement plan (PIP) to upgrade the hotel in time to renew a 20-year Hilton license agreement.

Hilton Garden Inn, Phoenix, AZ

Strong Basis & Limited Supply

Peachtree's total loan basis is $99k/key. Most recent comparable transactions in the market averaged $185k/key, representing an 87% premium to Peachtree's total loan basis. The hotel has access to the Hilton Honors loyalty program, which has over 146MM members. There is only one hotel under construction within a 5-mile radius of the property, a Home2 Suites.

Experienced Management Company

The hotel is managed by Aimbridge Hospitality, a full-service hotel management company with expertise in managing full-service and select-service hotels of all major brands globally. With a managed portfolio of 1,377 properties worldwide, Aimbridge's management teams specialize in distinct verticals, providing focused management depending on service level.

Proximity to Demand Drivers

The hotel is in an industrial/office sector of North Phoenix at the cross-section of Interstate 17 and State Route 101. Businesses in the area include Chubb Group of Insurance Co (0.3mi), Honeywell Deer Valley (1.4mi), USAA Corporate Campus (1.5 mi), PetSmart Corporate Office (2.6 mi), and TSMC Arizona Corporation (6.5 mi), which has a $40B expansion in progress.

Also close by is the HonorHealth Deer Valley Medical Center, a 204-bed full-service hospital with three medical buildings and an ongoing$170MM expansion.

The area's tourism hub is 17 miles from the Hotel, which hosted 19.5MM people in 2022, including a million international visitors. The area includes State Farm Stadium, which hosts approximately 200 events per year and is home to the NFL's Arizona Cardinals, and the Footprint Center, which can host 18,000 attendees and is home to the NBA's Phoenix Suns and WNBA Phoenix Mercury.

Need Financing? Contact Jared Schlosser, lending@peachtreegroup.com

Peachtree news and insights.

Insight
General
5 min read

Every Move Matters: Navigating the New Era of Commercial Real Estate

Market Insights Q1 2025 | At Peachtree, we've built our platform for this exact environment. With a fully integrated investment and credit platform, deep experience across market cycles, and flexible capital ready to deploy, we're well-positioned to take decisive action when others hesitate.

You don't think twice about skipping a workout or hitting snooze, until six months later when your back goes out lifting a suitcase. That's the thing about choices: they rarely shout. Most whisper. At the moment, they feel light, harmless, and even forgettable. But over time, they stack up and eventually shape everything.

It's the same in commercial real estate.

For years, the market rewarded financial engineering. Falling interest rates, cap rate compression and cheap capital allowed many investors to ride the momentum and still generate strong returns. That era is over.

We're now operating in a higher-for-longer environment. Interest rates are elevated, traditional lenders have pulled back, and capital markets are volatile. Macroeconomic disruptions, geopolitical risk and inflation-shifting trading policy are repricing risk in real time.

In this environment, every move matters. Every decision, whether to buy, sell, recapitalize or hold, carries more weight than it did even a year ago.

 · Capital must be deployed with precision. The margin for error has narrowed. Mispricing risk, overleveraging,or relying on optimistic underwriting can quickly impair a deal.

 · Liquidity is a strategic advantage.In a market where many lenders have pulled back or lowered leverage, execution certainty is no longer assumed. It's earned.

 · Fundamentals, not financial engineering, define success. Cap rate compression is no longer the tailwind it once was. Returns must come from operational excellence, asset quality and disciplined management.

· Time is costly. In action can be just as damaging as a poor decision. Delays in refinancing or hesitation in uncertain markets can weigh heavily on performance.

At Peachtree, we've built our platform for this exact environment. With a fully integrated investment and credit platform, deep experience across market cycles, and flexible capital ready to deploy, we're well-positioned to take decisive action when others hesitate.

Because in this market, as inlife, every action has a weight and the most successful outcomes are born from clarity, discipline and conviction.

Private credit remains one of the most compelling solutions in today's market, offering downside protection, yield and flexibility. And with traditional capital still constrained, special situation investing is gaining momentum as a primary strategy to unlock value in a dislocated market.

As the landscape evolves, we continue to seek opportunities that leverage our strengths and provide value to our investors.

 

— Greg Friedman | Managing Principal & CEO of Peachtree Group
Press Release
General
5 min read

Peachtree Group CEO Recognized as 2025 Industry Leader in Commercial Real Estate Finance

Peachtree Group is proud to announce that Greg Friedman, managing principal and CEO, has been recognized among the 2025 Rainmakers in CRE Debt, Equity & Finance by GlobeSt., and named to Commercial Observer’s prestigious Power Finance list.

ATLANTA (May 5, 2025) - Peachtree Group (“Peachtree”) is proud to announce that Greg Friedman, managing principal and CEO, has been recognized among the 2025 Rainmakers in CRE Debt, Equity & Finance by GlobeSt.,and named to Commercial Observer’s prestigious Power Finance list. These industry-leading accolades highlight Friedman's exceptional leadership, strategic innovation and enduring impact on the commercial real estate finance landscape.

Inclusion on the GlobeSt. Rainmakers list acknowledges Friedman's ability to navigate one of the most challenging commercial real estate finance periods. Amid elevated interest rates, tightening capital markets and declining valuations, Friedman has led Peachtree's vertically integrated management platforms with clarity and conviction. His approach has helped stakeholders unlock value, access liquidity and capitalize on market dislocation.

Commercial Observer’s Power Finance list further affirms Friedman’s influence and adaptability. As lenders retracted and transaction volume slowed, Peachtree continued to deliver creative capital solutions from originating loans to establishing strategic partnerships and playing across the capital stack. Under Friedman’s leadership, Peachtree has remained a dependable partner known for its certainty of execution, critical expertise and a solutions-driven mindset. 

“These recognitions are a testament to Greg’s vision and our entire team’s commitment to being a steady force in an unpredictable market,” said Jatin Desai, managing principal and CFO of Peachtree. “Our strategy has always centered on disciplined investing, innovation and building strong relationships. Greg has set the tone.”

Peachtree’s success is powered by a high-performing, deeply experienced team that brings together the full spectrum of credit, equity, development and asset management expertise. This collective strength allows the firm to respond decisively to market shifts, underwrite with conviction and deliver solutions others can’t.

Peachtree has executed over $12 billion in commercial real estate transactions since inception. Its integrated platform aligns real estate, credit and capital markets expertise, positioning the firm to identify opportunities, deploy capital efficiently and manage risk across cycles.

Press Release
Credit
5 min read

Peachtree Group Closed 22 Loans Totaling $487.8MM in the Last 90 Days

Peachtree Group Closed 22 Loans Totaling $487.8MM in the Last 90 Days

May 2025

Peachtree Group is a nationwide direct balance-sheet lender, offering competitive terms, in-house loan servicing, and flexible capital to handle a wide array of projects.

Peachtree provides full-stack debt capital solutions to qualified commercial real estate owners across all sectors throughout the U.S. We offer bridge, construction, mezzanine, preferred equity, CPACE, permanent and NNN financing.

See below for some of the most recent loan transactions from Peachtree Group including hotel loans, retail, multifamily, industrial, and land.

Need Financing? Contact us at lending@peachtreegroup.com.

Peachtree Group Closed 22 Loans Totaling $487.8MM in the Last 90 Days

In The News