Versatile Hotel Financing with both Senior & CPACE Origination

‍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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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.

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ATLANTA (January 20, 2025) – Peachtree Group (“Peachtree”), a leading commercial real estate investment firm with a multi-billion-dollar portfolio of equity and debt investments, announced the expansion of its Delaware Statutory Trust (“DST”) platform to include investments in multifamily properties. The announcement coincides with the hiring of Jordan Hylton as senior vice president of multifamily acquisition to lead the firm’s DST multifamily investments.

This initiative reflects the evolution of Peachtree’s approach, building on its success in lending across various commercial real estate sectors and leveraging its vertically integrated, scalable investment platform. Since launching the DST program in 2022, Peachtree has completed seven debt-free DST acquisitions and ranked as a top 15 DST sponsor in 2024.

“For years, Peachtree has provided lending solutions across a diverse range of asset classes. Expanding into equity investments in multifamily properties is a natural progression for us,”said Greg Friedman, CEO and managing principal of Peachtree. “We see tremendous opportunities in the multifamily sector and are confident we can scale this platform systematically while delivering strong risk-adjusted returns for our investors.”

Multifamily properties have proven to be a resilient and attractive asset class, making them a strong complement to Peachtree’s hotel DSTs.

“Multifamily DSTs are among the most popular asset classes in the DST space, benefiting from stable fundamentals such as a housing shortage, increased homeownership costs and strong tenant demand,” said Tim Witt, president of 1031 Exchange/DST Products of Peachtree.“Of note, multifamily financing remains accessible even during challenging economic periods due to strong agency backing.”

Peachtree’s vertically integrated platform, which encompasses investment, development, and acquisitions, continues to demonstrate adaptability, positioning the firm to capitalize one merging opportunities.

“Our ability to expand into equity investments in multifamily is a testament to the strength and flexibility of our platform,” Friedman said. “Jordan’s extensive industry knowledge and proven track record, combined with Tim’s experience leading Peachtree’s DST program, make them the ideal team to drive this initiative forward.”

Hylton, a seasoned real estate veteran with over 20 years of experience and billions of dollars in transactions, will report to Witt and lead efforts to identify and secure multifamily acquisition opportunities.

Hylton most recently served as senior director at New York Life Real Estate Investors, an institutional real estate investment firm with more than $8 billion in assets under management. He began his career at PGIM Real Estate, a global institutional real estate investment firm managing more than $60 billion in assets.

“Multifamily is a great asset class to leverage, and we’re excited to integrate it further into our DST offerings,” Hylton said. “The sector’s strong fundamentals and consistent demand, align perfectly with the DST structure and investor goals. We’re committed to creating impactful investment opportunities that deliver value.”

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.

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