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Peachtree Group originated a $43.0MM recapitalization of the 218-room dual-branded Home2 Suites/Tru Fort Lauderdale Downtown. The floating-rate note carries a 36-month term with two extensions. The sponsor, Driftwood Capital, acquired the site in 2016 and developed the hotels, which opened in November 2020.

The dual-branded hotels (315 NW 1st Avenue) are in Fort Lauderdale's Flagler Village submarket, near key corporate and leisure demand drivers. Fort Lauderdale benefits from strong long-term fundamentals, bolstered by Florida’s position as the nation’s leader in net income migration. Downtown Fort Lauderdale has experienced significant growth, with a 35.4% population increase from 2020 to 2023. The area is home to approximately 200 company headquarters and is well-positioned for the continued return to office, with more than 70% of office workers back—20 percentage points above the national average. Key demand drivers include the Broward County Convention Center, which is expanding to become the nation’s sixth largest, and Port Everglades, one of the world's busiest cruise ports. These factors, combined with the region’s economic resilience, make Fort Lauderdale a compelling market.

With limited new supply and growing demand, Fort Lauderdale's market dynamics favor ADR growth. Expansion of the convention center, increasing cruise port activity, and strong economic fundamentals further support sustained demand.

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Peachtree Group originated a $59.0MM recapitalization of the 343-room dual-branded AC Hotel and Element San Antonio Riverwalk. The floating-rate note carries a 36-month term with two, 12-month extensions. The sponsors, Winston Hospitality and Concord Hospitality Enterprises, purchased former office towers—Riverview Towers—in December 2019 and spent two and a half years undergoing a multi-phase, adaptive reuse renovation to transform them into dual-branded hotels, which opened in 2022.

Located adjacent to San Antonio's famed Riverwalk, the #1 attraction in Texas, the hotels benefit from the city's strong tourism market, drawing over 39 million visitors annually, and its status as the third-fastest-growing city in the U.S., with a 3.8% population increase from 2020 to 2022. They remain the newest hotels in their competitive set.

The AC Hotel and Element are the first new Marriott-branded hotels in the Riverwalk Historic District since 2011, standing out in a downtown market where extended-stay offerings are predominantly Hilton-branded. As premium Marriott properties, they benefit from access to the Marriott Bonvoy loyalty program, the world's largest travel loyalty program, boasting over 200 million members and growing.

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This article is republished with permission from Commercial Observer

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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.

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