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Anatomy of the Deal | Revitalizing Lawrence: Peachtree’s $44MM Investment in The Benjamin
Lawrence, Indiana
Access to Private Credit,
Unlocked.
With trillions in loans maturing and traditional banks pulling back, leverage today’s market dislocation with an experienced private credit partner.
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Securities offered through Peachtree PC Investors LLC, member FINRA/SIPC. Additional information can be found HERE.
Successful transactions, showcased.
Browse Peachtree Group’s featured transactions and explore a diverse lending portfolio.
Private Credit,Explained.
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Private Credit FAQ's, answered.
What is private credit?
Private credit refers to non-bank lending where loans or credit are provided by private entities rather than traditional banks.This type of credit is often extended to companies that may not have access to public financing or prefer the flexibility of private arrangements. Private credit works through direct loans or investments made by private investors, hedge funds, private equity firms, or dedicated private credit funds to businesses or individuals. These loans can take various forms, including senior debt, mezzanine debt, and distressed debt.
Why is private credit growing?
Private credit is experiencing significant growth due to several factors:
- High Demand for Alternative Financing: Companies seeking flexible and swift financing options often prefer private credit over traditional bank loans.
- Attractive Returns: Investors are drawn to private credit for its potential to offer higher yields compared to traditional fixed-income investments.
- Economic Conditions: In low-interest-rate environments, private credit becomes an attractive option for investors looking for better returns.
- Regulatory Changes: Post-financial crisis regulations have limited banks' lending capacities, creating opportunities for private credit providers.
- Portfolio Diversification: Investors seek private credit for diversification, adding a different risk-return profile to their portfolios.
How do private credit funds work in commercial real estate?
Private credit funds in commercial real estate operate by pooling capital from multiple investors to provide loans to real estate projects. These funds can invest in various types of commercial real estate, including hotels, multifamily, office buildings, retail centers, and industrial properties. Investors can participate in private credit funds by buying shares or units of the fund.
- Investing in Private Credit Funds: Investors typically need to meet certain criteria, such as being accredited investors. They can invest through private placements or specialized investment platforms.
- Operations of Private Credit Funds: These funds manage the loan origination process, due diligence, and ongoing loan servicing, earning income through interest payments and fees.
How do private credit funds make money?
Private credit funds generate income primarily through:
- Interest Payments: The primary source of revenue is the interest charged on loans extended to borrowers.
- Origination Fees: Fees charged to borrowers for arranging and processing the loans.
- Management Fees: Fees paid by investors for managing the fund.
- Performance Fees: Some funds charge performance fees based on the returns generated.
What is private credit vs. private equity?
- Private Credit vs. Private Equity: While both involve investing in private companies, private credit refers to providing loans or credit, whereas private equity involves acquiring equity stakes in companies.
- Why Private Credit over Private Equity?: Private credit typically offers more predictable returns through interest payments and is often considered lower risk compared to the equity stakes that fluctuate with the company's performance.
Is direct lending private credit?
- Direct Lending as Private Credit: Yes, direct lending is a subset of private credit where lenders provide loans directly to borrowers without intermediaries like banks.
Is private credit the same as private debt?
- Private Credit vs. Private Debt: These terms are often used interchangeably, but private credit is a broader term encompassing all types of non-bank lending, including private debt.
- So is Private Debt the Same as Private Credit?: Yes, private debt is a type of private credit focusing specifically on debt instruments.
How big is the private credit market?
As of 2024, the private credit market continues to grow, with estimates suggesting it has surpassed $1.2 trillion in assets under management globally. This growth is fueled by increasing investor interest and the demand for alternative financing options.
Private Credit Investing offers the potential for higher returns and diversification but requires thorough research and understanding of the associated risks
Stay informed.
Read up on the latest news, trends, and analysis from our experts on private credit.
Quédate informado.
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Peachtree Group Surpasses $1.0 Billion in CPACE Financing
Peachtree Group has reached a significant milestone in Commercial Property Assessed Clean Energy (CPACE) financing, surpassing the $1.0 billion mark.
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ATLANTA (Dec. 9, 2024) – Peachtree Group (“Peachtree”) has reached a significant milestone in Commercial Property Assessed Clean Energy (CPACE) financing, surpassing the $1.0 billion mark—a distinction shared by only a select few companies in the industry. In 2024 alone, Peachtree completed 22 CPACE transactions across the U.S., surpassing its previous record for CPACE originations.
"In 2019, we launched CPACE, and today we've surpassed our first billion—a testament to the exceptional team and the strength of Peachtree’s vision,” said Jared Schlosser, Peachtree’s Executive Vice President of Hotel Lending and Head of CPACE. “Our strong foundation has not only fueled Peachtree’s success in CPACE financing but also solidified its position as a leader in the broader commercial real estate lending market.”
In the most recent loan origination rankings by the Mortgage Bankers Association, Peachtree was ranked as the seventh-largest commercial real estate investor-driven lender in the U.S.
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The firm’s $1.0 billion in CPACE financing is rooted in hospitality, which remains its largest segment comprising approximately 45% of its total. However, Peachtree has successfully expanded into other sectors, particularly residential communities (including multifamily, student housing and senior living), which now represent 22% of the portfolio or $220 million. Additionally, the firm has executed numerous CPACE transactions across industrial, mixed-use and office sectors, showcasing its versatility.
“In this challenging lending market, CPACE financing has emerged as a crucial source of liquidity for all commercial real estate sectors. This financing option is becoming increasingly essential as owners grapple with looming debt maturities and limited refinancing opportunities,” Schlosser said.
Commercial real estate remains in a turbulent period with trillions of dollars in debt maturing and refinancing becoming increasingly difficult due to tighter lending standards from traditional lenders. These challenges are reshaping the industry and forcing property owners to seek alternative financing solutions.
“CPACE has been a game-changer, offering long-term fixed-rate financing that lowers the cost of capital while enabling property owners to pursue energy-efficient upgrades with reduced financial strain,” Schlosser said. “Peachtree is proud to lead the way in expanding access to this innovative solution, helping owners across all commercial real estate sectors.”
In just over a decade, CPACE has reached a cumulative $7.2 billion in U.S. commercial real estate financings, according to PACE Nation, confirming the growing market adoption and acceptance of this financing tool.
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.
Peachtree Group Expands Hospitality Portfolio with Launch of New DST Investment in Iconic St. Augustine
Peachtree Group has announced the acquisition of its sixth hotel property structured as a Delaware Statutory Trust (DST) with the 90-key Home2 Suites by Hilton St. Augustine I-95 in the greater Jacksonville, Fla., area.
ATLANTA (Dec. 3,2024) - Peachtree Group (“Peachtree”), a leading commercial real estate investment firm with a multi-billion-dollar portfolio of equity and debt investments, has announced the acquisition of its sixth hotel property structured as a Delaware Statutory Trust (DST) with the 90-key Home2 Suites by Hilton St. Augustine I-95 in the greater Jacksonville, Fla., area. This latest DST offering is the third to close this year following the completion of the Residence Inn Tampa Wesley Chapel DST in November.
Peachtree’s DST hospitality acquisitions continue to present compelling opportunities for 1031 exchange investors seeking to reinvest proceeds from the sale of appreciated real estate while enjoying tax deferral benefits and maintaining a strong allocation within the thriving hotel sector.
The Home2 Suites by Hilton St. Augustine I-95 benefits from its strategic location off I-95 and its proximity to St. Augustine, one of Florida’s most popular tourist destinations. Known for its historic charm and vibrant economy, St. Augustine draws millions of visitors annually, creating year-round demand for hospitality services.
“With its premier location along the I-95 corridor, strong population growth in the surrounding area and St. Augustine’s rich historical and cultural appeal, this property is a natural fit for our DST portfolio,” said Tim Witt, president of 1031 Exchange/DST Products at Peachtree. “This extended-stay hotel is well-positioned to meet the needs of leisure and business travelers alike, offering a blend of modern convenience and comfortable accommodations.”
Peachtree’s six DST acquisitions — spanning diverse, high-growth markets — demonstrate the company’s expertise in identifying strategic opportunities within the hospitality sector. These acquisitions, including the recently launched Home2Suites by Hilton St. Augustine I-95, represent approximately $175 million in debt-free real estate transactions.
“Our focus on recognized hotel brands, value-add opportunities and Peachtree’s experienced hospitality management team ensures long-term potential for investors,” Witt said.
Peachtree emphasizes its commitment to offering investors tailored solutions aligned with 1031 exchange principles, enabling the seamless transition of capital gains into passive investments in the hospitality sector.
This property features institutional-quality construction, spacious suites with extended-stay amenities and strong brand recognition. Located just minutes from St. Augustine’s historic downtown, the hotel offers convenient access to top attractions, including the Castillo de San Marcos, St. Augustine Premium Outlets and pristine beaches.
Recent nearby developments, including mixed-use projects, healthcare facilities and luxury apartments, further enhance the property’s appeal and position for sustained demand in the years ahead.
With the launch of its sixth DST investment, Peachtree Group continues to lead in offering innovative real estate investment solutions. By capitalizing on positive secular trends in travel, inflation-resilient pricing models and the operational complexities of the hospitality sector, Peachtree delivers strong potential for long-term success and stability in its DST portfolio.
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.
Contact:
Charles Talbert
678-823-7683
ctalbert@peachtreegroup.com
Securities offerings are distributed by Peachtree PC Investors, LLC, member: FINRA/SIPC. This announcement does not constitute an offer to buy securities. DST Interests are illiquid, speculative and involve a high degree of risk. Prospective Investor should consult with his, her or its own tax advisor regarding an investment in DST Interests and the qualification of his, her or its transaction under Section 1031 for his, her or its specific circumstances.
Peachtree Closes 17 loans totaling more than $244MM in the last 90 days
Peachtree's lending team has closed 17 loans totaling more than $244MM in the last 90 days.
Peachtree Group Closed 17 loans totaling more than $244MM in the last 90 days
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. Click here for our portfolio.
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Need Financing? Contact us at lending@peachtreegroup.com.
FEATURED: $20.5MM Development Loan for a Conversion
Peachtree Group worked with the Sponsor to convert a retail store to an industrial building in a sought-after area of Sacramento, CA.
Read the Case Study.
FEATURED: $12.5MM Bridge Loan for a Hotel
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.
Read the Case Study.
Peachtree is an award-winning hotel lender. Contact us to discuss your deal.