Harnessing Relationships with Senior Lenders to Secure CPACE Financing

‍This article is republished with permission from Green Street News.

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The developer of an apartment complex in northwest Washington state has lined up $57.5 million of senior debt from Peachtree Group, including $29 million of commercial Property Assessed Clean Energy financing.

Grandview North is on track to complete the 350-unit Harrington Place, in Ferndale, by January 2026. Atlanta-based Peachtree funded $13 million of the debt at closing on Jan. 28.

The fixed-rate C-PACE loan has a 30-year term. The rest of the senior financing package, brokered by CapNorth, was structured as a $28.5 million, floating-rate construction loan with an initial term of 18 months, plus extension options.

As part of the deal, the term of an outstanding $20 million mezzanine loan from Hickory CRE Lending was adjusted to match that of the Peachtree floater. The project is expected to cost $90 million, which pegs the overall loan-to-cost ratio at roughly 86%.

New York-based Hickory originated its fully funded subordinate loan as part of a $77 million debt package that Arlington, Wash.-based Grandview lined up in April 2023. The package also included a $57 million senior-debt commitment from Bayview Asset Management of Coral Gables, Fla. Bayview’s portion, which never funded because construction was postponed due to permitting delays, was split between a $45 million construction loan from its Oceanview Life and Annuity affiliate and $12 million of C-PACE financing from its Bayview PACE unit.

Developers can use C-PACE loans, which are repaid via assessments collected with property taxes, to help finance commercial buildings that meet certain standards for energy efficiency and sustainability. For its part, Peachtree offers borrowers debt throughout the capital stack by providing such financing in conjunction with traditional construction and bridge loans, president Daniel Siegel said.

Harrington Place will comprise 11 buildings on an 18-acre site that Grandview has owned since late 2020. The 101 studios and 150 one-bedroom, 63 two-bedroom and 36 three-bedroom units will have quartz counters, stainless-steel appliances and full-size washer/dryers.

Amenities will include fitness, game and party rooms, a lounge, a playground, indoor and outdoor athletic courts, and a patio with grills. The property is at 6276 Portal Way, a half-mile west of the Nooksack River and 10 miles northwest of Bellingham, a growing city between Vancouver, Canada, to the north and Seattle to the south.

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Peachtree Group Deploys $1.6 Billion in 2024, Strengthening its Reach in Private Credit Lending

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ATLANTA (Feb. 10, 2025) – Peachtree Group (“Peachtree”), a diversified commercial real estate investment platform, deployed $1.6 billion in credit transactions in 2024, marking a 54% increase from 2023. This growth highlights Peachtree’s reach in private credit lending and its ability to provide financing solutions across multiple property types, including hospitality, multifamily, industrial and specialty assets.

Founded in 2007, Peachtree has evolved into a vertically integrated investment firm, strengthening its ability to source, underwrite and manage assets. Since 2010, it has played a key role in expanding private credit in commercial real estate, supporting hotels and other commercial real estate sectors. Through strategic growth, the firm has deepen edits leadership and expertise, accelerating expansion in commercial real estate lending.

The majority of Peachtree’s 2024 credit investments were concentrated in the hospitality and multifamily sectors, with $876 million and $392.3 million in transactions completed, respectively. The remaining $297.4 million was strategically deployed across industrial, land, mixed-use, retail, office and single-family residential asset classes, reinforcing Peachtree’s commitment to a diversified lending strategy.

“As we reflect on 2024, we executed a record level of transactions while expanding our lending platform to serve a broader range of commercial real estate asset classes,” said Greg Friedman, CEO and managing principal of Peachtree. “Looking ahead, we expect outsized growth by leveraging our private credit lending programs and launching additional initiatives to address underserved niches in the market.”

Since strengthening its credit team, Peachtree has executed more than $1 billion in commercial real estate transactions, underscoring its reach and execution capabilities in a challenging lending environment.

“With sustained high interest rates, reduced bank lending and $4.5 trillion in U.S. commercial real estate debt maturing by 2028, the need for alternative financing solutions is more critical than ever,” said Daniel Siegel, president and principal, CRE at Peachtree. “At Peachtree, we help borrowers navigate rising capital costs and liquidity constraints by offering flexible financing solutions across multiple asset classes.”

The Mortgage Bankers Association recognized Peachtree as the seventh-largest investor-driven commercial real estate lender in the U.S., further solidifying its position as a top-tier financing partner.

As a direct commercial real estate lender, Peachtree offers a full spectrum of financing solutions, including permanent loans, bridge loans, mezzanine financing, CPACE (Commercial Property-Assessed Clean Energy) loans and preferred equity investments. Expanding its capabilities, Peachtree also launched a Triple Net Lease (NNN) financing program last year to further support sponsors.

In addition to its broad lending platform, Peachtree continues to lead in CPACE financing, setting a record in2024 with 22 transactions totaling $316.6 million. The CPACE team also recently surpassed $1 billion in total transactions—an achievement few companies in the industry can claim—further cementing Peachtree’s position as a leader in structured financing solutions.

“As Peachtree continues to scale its lending platform, it remains committed to providing capital solutions that drive long-term value for borrowers and investors alike,” Friedman added.

About Peachtree Group
Peachtree Group is a vertically integrated investment management firm specializing in identifying and capitalizing on opportunities in dislocated markets, anchored by commercial real estate. Today, the company manages billions in capital across acquisitions, development and lending, augmented by services designed to protect, support andgrow its investments. For more information, visit www.peachtreegroup.com.

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ATLANTA (Feb. 3, 2025) – Peachtree Group (“Peachtree”) announced that the firm surpassed $2 billion in hotel development, bringing its total development portfolio to 48 hotels nationwide.  

Peachtree's development journey began 17 years ago with a $10 million Fairfield Inn project in Alabama, establishing its expertise in hotel development with a focus on suburban, highway and tertiary markets across the Southeast and Midwest.

Today, Peachtree has expanded its reach, solidifying its leadership in hospitality development with projects not only in its traditional markets but also in urban infill locations nationwide. Recent milestones include topping out a beachfront hotel in Gulf Shores, Alabama and breaking ground on a dual-branded project in Uptown Dallas, Texas.

"Our early projects taught us how to build efficiently and effectively, setting the stage for the more complex and impactful developments we're delivering today," said Greg Friedman, managing principal and CEO for Peachtree. "From suburban mainstays to urban landmarks, our team's adaptability and expertise have been the cornerstone of our success."

Showcasing its versatility, Peachtree leverages an experienced underwriting and project management platform to strategically expand its footprint into larger urban infill markets nationwide, collaborating with local development partners and pursuing larger investments.

Recent and ongoing projects include:

• Embassy Suites, Gulf Shores, Alabama: This beachfront hotel, the largest in the area, recently topped out and is set to open in summer 2025.
• AC and Moxy Hotel, Uptown Dallas: This 264-room, dual-branded Marriott-branded development broke ground in August 2024 and represents a milestone in urban hospitality development.
• Tru by Hilton, Huntsville, Alabama: a modern 98-room hotel designed for comfort and convenience, scheduled to open in the fourth quarter of 2025.

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These projects and others under construction span the country and highlight Peachtree's ability to execute across a broad spectrum of hospitality asset types, from limited-service properties to high-rise, amenity-rich hotels. Peachtree has been a strong advocate of the Qualified Opportunity Zone (QOZ) program since its inception, strategically allocating capital to drive economic development and to meet the program’s objective of fostering revitalization and growth in underserved communities. Recent examples of Peachtree's success in QOZ developments include:

• AC Hotel by Marriott, Sacramento, California: This hotel transformed an underperforming surface parking lot into a signature downtown hotel and was recently awarded one of the city's Best Real Estate Projects for 2024.  
• Residence Inn by Marriott, San Antonio, Texas: Succeeding an older-generation property, the hotel taking advantage of a premier location near strong demand drivers in a diverse and growing market.
• The Hampton Inn & Suites Maui, Kahului, Hawaii: A 136-room beachfront property and Kahului’s only branded hotel. Positioned to capture demand from both the cruise ports and the primary airport, it is set to open by the end of March.  

The firm has been one of the most active hotel developers in QOZs, having already opened 10 hotels, with another five under construction  and three in the pipeline in these designated areas.

“Hotels are more than just buildings; they are drivers of economic opportunity, creating local jobs and providing paths to meaningful careers in hospitality. By investing in underserved hospitality markets, we aim to support the growth of neighborhoods and contribute to their development,” Friedman said.

While Peachtree remains committed to its core expertise in suburban, limited-service hotels—exemplified by the Homewood Suites by Hilton project in Louisville, Kentucky—it has also embraced larger, more complex developments in primary markets. These projects reflect Peachtree’s commitment to diversifying its portfolio and creating long-term value.

"Our development strategy is about identifying opportunities where we can leverage our learned expertise and push the boundaries of what we can achieve," Friedman said. "Whether it's suburban efficiency, urban complexity or transformative Opportunity Zone developments, our team continues to deliver exceptional results for our stakeholders."

With a proven track record and a forward-looking approach, Peachtree is poised to continue leading the way in hospitality development. The firm's ability to balance efficiency, innovation and social impact ensures it remains well positioned to meet the evolving demands of the market.

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‍About Peachtree Group
Peachtree Group is a vertically integrated investment management firm specializing in identifying and capitalizing on opportunities in dislocated markets, anchored by commercial real estate. Today, the company manages billions in capital across acquisitions, development and lending, augmented by services designed to protect, support and grow its investments. For more information, visit www.peachtreegroup.com.