This article is republished with permission from Commercial Observer
Commercial Observer (February 4, 2025) - Starlife Group has secured $35 million of construction financing to build a multifamily development in Hollywood, Fla.,Commercial Observer can first report.
Peachtree Group originated the fixed-rate Commercial Property Assessment Clean Energy (C-PACE) loan on the developer’s planned 200-unit 21 Hollywood project.
SF Capital Group’s Matt Shane arranged the transaction, which will be used to support the 13-story project’s energy efficiency, envelope enhancements and hurricane resiliency measures.
Jared Schlosser, Peachtree Group’s senior vice president, said the long-term structure of the deal was an ideal approach for the project amid a high interest rate climate, with Peachtree covering 40 percent of the cost and Starlife Group contributing 60 percent equity. The 30-year loan is non recourse outside of a completion guarantee, according to Schlosser.
“We handled theconstruction draws just like you would on a senior construction loan and wewere even able to fund a little bit of capital at close for the project to getstarted, so it ends up being a pretty accretive alternative compared to justtaking a low-leverage bank loan,” Schlosser told CO.
“It acts like an insurance product where it’s a construction-to-perm deal, but it doesn’t have the traditional rights and remedies and recourse that may come along with traditional long-term financing,” Schlosser added. “Here it’s just a straight annual payment, which is easier to navigate for the borrower.”
Located at 2100 N.Federal Highway, the 21 Hollywood project broke ground late last year and is slated for completion in February 2027. Community amenities will include an infinity pool, a fitness center, outdoor kitchens, co working space and a dog park. The property will also feature 9,997 square feet of ground-floor retail.
Fort Lauderdale-based Starlife purchased the 1.48-acre site across from South Broward High School for $6.5 million in 2023, according to the South Florida Business Journal. The development was designed by Kobi Karp Architecture.
“Conventional construction loans are hard to find these days,” Shane said. “There was significant equity brought into the project, so it made the deal easy to do with PACE.”
Officials at Starlife Group did not immediately return a request for comment.
In the latest episode of Peachtree Point of View podcast, CEO Greg Friedman sits down with EVP Jared Schlosser, who specializes in hotel lending and C-PACE financing. Their conversation offers valuable insights into navigating today's dislocated credit markets and finding creative solutions to capitalize commercial real estate projects.
Jared, who joined Peachtree in 2019 after beginning his career during the 2007 market downturn, provides a unique perspective on the dramatic shift in credit markets since then. He explains how developers are struggling with rising costs and persistently high interest rates that make traditional financing structures difficult to pencil.
Senior + CPACE
The discussion centers on how Peachtree is helping clients overcome these challenges, with particular focus on C-PACE (Commercial Property Assessed Clean Energy) financing as an innovative tool. This state-by-state legislative product allows financing for specific elements of construction (roofing, HVAC, elevators, etc.) through long-term fixed-rate loans repaid via property tax assessments.
What makes this strategy particularly powerful is the ability to combine C-PACE with senior debt to achieve higher leverage at a lower blended cost of capital. For example, on a $100 million project, developers might secure $30 million through C-PACE at 7.5% fixed (half the cost of traditional mezzanine debt), allowing them to finance 75% of project costs at favorable rates while maintaining acceptable returns.
Case Study: Washington Multifamily
Jared shares a recent success story from Washington state where Peachtree provided both senior debt and C-PACE financing, partnering with Hickory for mezzanine debt to deliver an impressive 87% capital stack. With Peachtree providing 70% through the combined senior and C-PACE loans, the borrower secured an attractive blended cost of capital for a higher-lever age construction loan. The multifamily project is located in an underserved secondary market with limited recent development—a focus area for Peachtree.The deal also featured flexible terms allowing the borrower to potentially payoff the C-PACE portion if rates decline.
Key Takeaways:
Listen to the full Peachtree Point of View podcast to gain deeper insights into how you can leverage these creative capital solutions for your next commercial real estate project. Follow Peachtree Point of View on your favorite podcast platform to stay informed on investment strategies in today's challenging market.
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ATLANTA (April 3, 2025) – Peachtree Group (“Peachtree”) ranked as the eighth-largest investor-driven commercial real estate lender in the U.S., according to the Mortgage Bankers Association’s (MBA) 2024 loan origination rankings. In 2024, Peachtree deployed approximately $1.6 billion in commercial real estate credit investments.
“With a substantial volume of maturities on the horizon and trillions in debt coming due through 2028, the current environment increasingly favors private credit lenders like Peachtree,” said Greg Friedman, managing principal and CEO of Peachtree. “We’re well-positioned to capitalize on these opportunities and help close the funding gap left by traditional capital sources.”
The MBA also ranked Peachtree as the seventh-largest U.S. commercial real estate hotel lender, marking its fourth consecutive year in the top ten. The firm also earned rankings across the office, multifamily, retail and industrial sectors.
“The hospitality sector continues to demonstrate remarkable resilience, driven by strong demand fundamentals,” said Michael Harper, president of hotel lending at Peachtree. “We remain committed to supporting owners and operators with expansion, renovation and refinancing needs—leveraging our strategic capital deployment and adaptability to drive long-term value.”
Amid ongoing market volatility, Peachtree deployed nearly $500 million in credit transactions during the 2025 first quarter and is on track to exceed its 2024 production targets. Notable originations this year include:
· $59.0 million bridge loan – AC / Element Hotel, San Antonio, Texas
· $51.5 million bridge loan and Commercial Property Assessed Clean Energy (CPACE) financing – Reserve at Vinedo, Paso Robles, Calif.
· $48.3 million bridge loan and CPACE financing – Yorkshire Apartments, Tumwater (Olympia), Wash.
· $43.0 million bridge loan – Home2 Suites / Tru Hotel, Fort Lauderdale, Fla.
· $42.8 million bridge loan – The Jax Apartments, Monroe, Ga
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“Our fourth consecutive top 10 year underscores the strength of our credit platform and our ability to lend through business cycles. These results reflect our reputation for reliability and delivering certainty of execution, even in the most volatile of market conditions,” Harper added.
As a direct commercial real estate lender, Peachtree offers a full suite of financing solutions, including permanent loans, bridge loans, mezzanine financing, CPACE (Commercial Property-Assessed Clean Energy) loans and preferred equity investments. The firm further expanded its capabilities last year by launching a Triple Net Lease (NNN) financing program to better support sponsors.
Peachtree reaffirmed its position as a leader in CPACE financing in 2024, setting a firm record with 22 transactions totaling $316.6 million. The CPACE team also recently surpassed $1 billion in total transaction volume—an achievement few in the lending industry can claim—further solidifying Peachtree’s success in expanding its lending platform and providing innovative financing solutions.
MBA's annual originations rankings report is a comprehensive set of listings of 149 commercial/multifamily mortgage originators, their 2024 volumes and their different roles.
Commercial Observer - Grandview Companies has secured a $63 million financing package for the development of a multifamily development in Western Washington, Commercial Observer has learned.
Peachtree Group originated a $28.3 million, 26-month first mortgage and 30-year $17 million Commercial Property Accessed Clean Energy (C-PACE) loan for the developers’ planned 280-unit Yorkshire Apartments project in Tumwater, Wash. Hickory CRE Lending also provided a $17.7 million mezzanine loan as part of the transaction, which was brokered by Zack Goodwin, managing partner at CapNorth.