Through the end of September, commercial real estate investment firm Peachtree Group has completed more than $2 billion in private credit transactions across 77 deals year to date, marking a record year in the first three quarters alone. According to a statement, the firm is on pace to approach $2.5 billion for the full year, which it credits to “the expanding role of private credit in commercial real estate as traditional lenders remain cautious in a market shaped by tighter liquidity and ongoing volatility.”
“Our ability to consistently execute at a high level is a direct function of the ecosystem we’ve built over the last 18 years,” Greg Friedman, Peachtree’s managing principal and CEO, said in the statement. “Our vertically integrated credit platform that spans origination, underwriting, servicing and asset management enables us to be proactive where many are reactive, delivering certainty and stronger outcomes for our borrowers and investors.”
Changing Credit Standards
Banks, which traditionally account for half of commercial real estate lending, have tightened credit standards or pulled back entirely, creating new opportunities for private credit lenders to offer flexible financing for acquisitions, construction, refinancing and recapitalization.
“We are seeing strong demand from institutional-quality borrowers looking for certainty of execution in a disrupted lending market,” said Michael Harper, Peachtree’s president, hotel lending. “This year’s growth underscores our ability to deliver creative capital solutions across asset classes, including hotels, multifamily, industrial, office and land.”
Peachtree has originated approximately $1.1 billion in hotel loans this year, selectively leaning into multifamily, office and industrial, where dislocation or supply constraints are creating compelling opportunities for well-structured credit investments.
Notable transactions completed included:
- $176.5 million in Commercial Property Assessed Clean Energy (“CPACE”) financing for the Rio Hotel & Casino in Las Vegas, Nev.
- $68.2 million first mortgage loan for the AC hotel in Seattle, Wash.
- $59.0 million first mortgage loan for the AC/Element Riverwalk hotel in San Antonio, Texas
- $52.0 million first mortgage loan for the planned 270-acre The Block at Elliot development in Mesa, Ariz.
- $42.0 million first mortgage loan to finance the acquisition of the Atlanta Financial Center in Atlanta, Ga.
Looking Ahead
In 2024, Peachtree deployed $1.6 billion in credit transactions, representing a 54 percent increase from the prior year, and making the firm one of the largest investor-driven commercial real estate lenders in the United States, according to the Mortgage Bankers Association.
The company expects private credit activity to remain strong, driven by a wave of debt maturities, continued tighter bank lending and the need for refinancing or recapitalization of projects nearing stabilization.
“With nearly $3 trillion in U.S. commercial real estate debt maturing by 2028, private credit lenders are positioned to step into a market hungry for capital,” said Jared Schlosser, head of originations and CPACE at Peachtree. “Our ability to provide flexible capital at scale, even in complex situations, positions us as a trusted partner for borrowers navigating today’s market.”
Peachtree provides a full range of financing options, including permanent loans, bridge loans, mezzanine financing, CPACE, preferred equity and triple net lease financing. “As we continue to scale our lending platform, we remain focused on serving borrowers with creativity, certainty and speed, which have long defined Peachtree’s approach to private credit,” Schlosser said.