VCP Medical Office

Property Type
Office
Investment Type
CPACE Lending
Brand
Date of Investment
March 2024
Location
Atlanta, GA
Keys
Units
Square Footage
CPACE Lending
CPACE
CPACE Lending
CPACE
CPACE Lending
14.1%
CPACE Lending
$5.0MM

Peachtree Offers Mid-Construction Relief with Retroactive CPACE Financing

An experienced CPACE lender, Peachtree Group originated a retroactive CPACE (commercial property assessed clean energy) loan for $5.0MM for a medical office building in Atlanta, Georgia. The development is a newly constructed, five-story building with 71,888 square feet of rentable Class A space. Construction was completed in late 2023 and 31% pre-leased with four tenants. The borrower projected stabilization at 95% occupancy by the end of 2025.

Peachtree Group came into the deal mid-construction using a retroactive pace loan to help with cost overruns. CPACE proceeds were used to cover efficiency and conservation measures installed during construction such as building envelope, windows, HVAC, lighting systems, and water fixtures.

VCP Medical Office utilized retroactive C-PACE financing from Peachtree Group.

Strong Basis

The CPACE financing is less than the value of the land with a strong debt service coverage ratio (DSCR) throughout the loan with 5.91x in year two. In addition, the retroactive CPACE loan has a loan-to-value (LTV) of 10.8% and a loan-to-cost (LTC) of 14.1%.

Experienced Sponsor

The Sponsor is an experienced real estate developer with an extensive track record of developing medical office, retail, and multifamily. The sponsor guaranteed CPACE payments to an institutional senior lender, who has 50% recourse until the property is 50% leased. At loan signing four tenants were committed.

Proximity to Demand Drivers

The Subject is a newly constructed Class A office building located across the street from Piedmont Hospital, the 643-bed flagship hospital of Piedmont HealthCare. Also across the street is Shepard Center, a 152-bed hospital that specializes in spinal cord injury and other neuromuscular conditions. The location is close to major highways including Georgia 400, Interstate 85, and Interstate 285; as well as along public transit via the Metro Atlanta Rapid Transit System (MARTA).

Learn More about CPACE Financing

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