ATLANTA (SEPT 4, 2024) – Peachtree Group, a vertically integrated investment management firm, has launched a restaurant management division. Under the leadership of Daniel Puglisi, SVP of corporate operations for hospitality management, this division will focus on operating quick-service restaurants, starting with coffee shops.
This new venture underscores Peachtree Group's commitment to expanding its footprint in the hospitality industry, beginning with a high-profile partnership with AdventHealth and launching a Starbucks location in its AdventHealth Orlando hospital.
The U.S. Quick Service Restaurant (QSR) market was valued at approximately$320 billion in 2023, encompassing major chains like McDonald's and smaller regional players. Coffee shops, including big names like Starbucks, Caribou Coffee and Dunkin', make up 12-15% of this market, contributing tens of billions in annual revenue.
"Since our founding in 2007, we have consistently grown by identifying inefficient markets and capitalizing on them to achieve strong returns and build sustainable businesses," said Greg Friedman, Peachtree Group’s managing principal and CEO. "The expansion into restaurants from our existing hospitality management capabilities was a natural evolution. Our partnership with AdventHealth marks a significant milestone as we look to replicate this successful model across their network and other captive locations."
The Starbucks at AdventHealth Orlando is now open and is the first storeto be opened under this new division. It is strategically positioned within the hospital's flagship university campus, featuring a two-story glass storefronton a prominent corner. This initiative is part of a broader strategy to enhance patient satisfaction and provide convenient, high-quality service to hospital visitors and staff.
Peachtree Group is also in discussions with other coffee franchise offerings and aims to extend its reach to high profile or high demand markets with captive audiences. The goal is to establish a robust portfolio of high-profile quick-service coffee shop locations nationwide.
The new division will oversee all new and existing restaurant locations not within its own portfolio of hotels. This includes transitioning its downtown Orlando Starbucks location at its dual-branded Hilton Garden Inn andHome2 Suites by Hilton to the restaurant management division.
"Our commitment to excellence in service and operational efficiency sets us apart in the industry. By leveraging our extensive hospitality expertise and premium brand partnerships, we are able to deliver exceptional experiences to our customers and value to our landlord partners," Puglisi said.
This initiative follows a year-long development process, beginning with a lease agreement signed in August 2023 and construction commencing in February2024. Peachtree Group has toured several other AdventHealth campuses, laying the groundwork for future expansions.
Peachtree Group's strategic approach and customer service mindset have been key factors in securing this partnership. As other hospital systems observe the positive impact on AdventHealth's patient satisfaction scores and asset enhancement, Peachtree Group anticipates a growing demand for similar arrangements.
"We are excited about the potential to grow this venture rapidly, with an initial goal of reaching five stores as a beta test and ultimately aiming for 100 locations," Puglisi added. "Our focus is on hospitals, universities and other high-traffic, high-visibility locations where we can make the most significant impact."
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
The commercial real estate industry has entered a transformative period defined by Chaos, Complexity, Complications and Creativity. The interplay of macro-economic pressures, financial challenges and anticipated policy changes from the new administration has created a volatile environment that demands adaptability and strategic thinking from stakeholders.
The chaos in CRE stems from structural shifts and economic headwinds reshaping the industry. Elevated interest rates have fundamentally altered investment returns, making debt more expensive and refinancing significantly harder. An ongoing "wall of debt maturities," totaling $3.6 trillion over the next 36 months, will force owners to manage or restructure obligations under far less favorable conditions than when loans were originated.
We are at historic levels of debt maturing as we are at the tail end of a wave of CRE loans maturing, many of which originated before 2022, particularly in 2014 and 2015, reflecting the prevalent 10-year loan terms of that period. To put this into context, the average interest rate on CRE loans originated in 2024 was roughly 6.2% versus the 4.3% rate on maturing mortgages—a nearly200-basis-point increase, according to S&P Global.
Meanwhile, the new administration's plans to cut costs and tighten immigration policies introduce uncertainty, complicating operational and labor-related decisions. While the immigration policy discussions may create short-term volatility, its impact on long-term CRE investments is expected to be minimal. These discussions serve as an "eye candy" distraction without substantial consequences for capital deployment or the asset class's attractiveness.
These factors foster a chaotic and volatile environment, disrupting traditional approaches to ownership, transactions and refinancing.
CRE investments are inherently complex, and the current chaotic market magnifies these challenges. Rising debt obligations now exceed asset performance, particularly as rent growth and NOI struggle to keep pace with increasing costs. Market stress varies across sectors, with some assets thriving while others falter under outdated financing terms and reduced liquidity.
The complications stemming from broken capital stacks and operational challenges are expected to peak this year. Higher interest rates and more conservative lending criteria make debt restructuring increasingly tricky. Insurance and heightened compliance costs exacerbate inefficiencies, further straining asset performance.
In this challenging environment, creativity is no longer optional but essential. Owners and investors must adopt innovative strategies to structure deals, recapitalize assets and maintain competitiveness.
Strategies like CPACE financing, which enhances building efficiency while addressing funding gaps, and EB-5 investments, which access foreign capital through immigrant investor programs, offer viable solutions. Preferred equity and mezzanine debt can fill capital stack gaps, while private credit provides customized financing arrangements tailored to asset-specific needs. Creative structuring, such as Delaware Statutory Trusts (DSTs), maximizes tax advantages and enhances cash flow predictability.
Tax considerations should also play a vital role in determining your investment strategies. Delaware Statutory Trusts (DSTs) offer appealing solutions for 1031 exchange investors seeking tax deferral and portfolio diversification through high-quality assets.
Opportunity Zones remain one of the most significant tax benefits across the country while furthering the cause of urban redevelopment. These tax-advantaged instrument allows investors to reduce their tax burdens and extract more value from their CRE investments.
This year will be a watershed moment for commercial real-estate stakeholders. The erratic nature of the market means that financial tools must be intimately understood, and alternative approaches embraced. Success will come down to adaptability, innovation and a deep understanding of market dynamics. Although the headwinds will be persistent, this environment provides unique opportunities for those who are prepared to embrace the four Cs and help define a creative way forward.
The Peachtree Group team will share their insights into how the market is shaping up and how they plan to adapt their strategies to navigate Chaos, Complexity, Complications and Creativity. Each aims to overcome the headwinds and seize the opportunities presented in this transformative period for the commercial real estate industry.
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ATLANTA (Jan. 6, 2025) – Peachtree Group ("Peachtree") announced today that Josh Rubinger has joined as senior vice president of national accounts for its broker-dealer affiliate, Peachtree PC Investors("PPCI"). Rubinger’s role will focus on business development, overseeing relationships with broker-dealers and registered investment advisors (“RIAs”)and supporting the distribution of the firm’s investment offerings.
With more than two decades of experience in financial services and a proven track record of developing strong client relationships, Rubinger's leadership will further strengthen Peachtree's commitment to delivering tailored investment solutions through PPCI.
“This strategic hire underscores our focus on grow thand strengthening Peachtree’s position as a trusted partner within the investment community,” said Brian Cho, president of PPCI. “Josh's extensive experience and strong network of relationships with broker-dealers and RIAs position him as a key asset to our team. His expertise will be instrumental in shaping our selling group and broadening our market reach.”
Prior to joining PPCI, Rubinger served as senior vice president and head of national accounts for Ashford Securities, a broker-dealer wholly owned by Ashford Inc., an alternative asset management company specializing in the real estate and hospitality sectors.
Before Ashford, he served as senior vice president of national accounts for Lightstone Capital Markets, the capital markets division of The Lightstone Group. Rubinger also served as vice president and East Coast national accounts manager at Thompson National Properties LLC. Before entering the alternative investment space, he held roles with Oppenheimer Funds andColumbia Funds.
Rubinger holds a bachelor’s degree from Hamilton College and FINRA Series 7 and 63 securities licenses.
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.
The Outlook For Commercial Real Estate in 2025
Despite markets bracing for more deregulation under President-elect Donald Trump, Greg Friedman says higher interest rates will damage commercial real estate. He believes regional banks will stay conservative in a high-rate environment, which can squeeze the CRE market. However, Greg says his firm has seen success in multi-family and retail spaces.
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