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About About UsWhat We DoHistoryInsightsCareersFAQGet In Touch Investments All InvestmentsCredit/LendingAcquisitionsDevelopmentPortfolio Investment Services Investment ServicesAsset Mgmt.Const. Proj. Mgmt.Capital MarketsEB-5DSTFilm FinancingHotel Mgmt. Credit/Lending CRE/Hotel CPACE Film TeamHotel ManagementInvestor Login An investment firm GUIDED BY INTUITION. GROUNDED BY EXPERTISE. Get the benefit of expertise. The insight of hundreds of investments executed, the power of billions under management, and services designed to protect, support and grow investments - all from one determined and accomplished partner. Get Started Slide 2 of 3. 1 2 3 Peachtree CEO on Challenges in CRE, Market Trends and Why Private Credit | Bloomberg TV Peachtree CEO talks commercial real estate turning to private credit as banks pullback lending | CNBC A TRACK RECORD ROOTED IN EXPERTISE. Leverage a wealth of industry knowledge, gain invaluable strategic guidance and maximize your investments. Our seasoned experts are committed to excellence with a visionary approach that uncovers unseen opportunities and anticipates market changes. $10.3 BILLION in real estate asset value 683 total transactions Developer of the Year INVESTED IN YOUR GROWTH. Maximized returns don't just happen. They're forged from long time industry know-how, market insight, and an expert partner to put the puzzle together. Grow with us. Acquisitions $2.1 billion in acquisitions 94 acquisition transactions Credit/Lending $6.4 billion credit/lending transactions 539 credit/lending transactions Development $1.8 billion in development 50 development transactions END-TO-END SUPPORT. Achieve success with services designed to preserve your capital and grow your investments. ASSET MANAGEMENT $6.7 billion in active investments Read more CAPITAL MARKETS $3.8 billion equity raised and deployed Read more CONSTRUCTION PROJECT MANAGEMENT 1,000+ rooms repositioned, rebranded, renovated and converted Read more HOSPITALITY MANAGEMENT 91 hotels managed 11,616 keys Read more Ventures PeachtreeGroup identifies and incubates promising ventures with the potential tocomplement our portfolio, bringing the investment to you when it is ready topower future growth. EMERGING COMPANIES LOGISTICS PORTFOLIO COMPANIES STONEHILL STRATEGIC CAPITAL Learn more STONEHILL PACE Learn more GALA MEDIA REVIVE LAND GROUP NO TWO INVESTMENTS ARE THE SAME. THAT’S WHERE WE THRIVE. Hotel Credit/Lending HILTON GARDEN INN, PHOENIX AZ Phoenix, AZ Read case study Industrial Credit/Lending SACRAMENTO INDUSTRIAL PARK Sacramento, California Read case study Office Credit/Lending VCP MEDICAL OFFICE Atlanta, GA Read case study Our Investment Portfolio OUR principals. Greg Friedman Managing Principal & CEO Jatin Desai Managing Principal & CFO Mitul Patel Principal Daniel Siegel President and Principal CRE, Credit PEACHTREE NEWS AND INSIGHTS. Press Release General 2 min read PEACHTREE GROUP LAUNCHES RESTAURANT MANAGEMENT DIVISION Peachtree announces Partnership with AdventHealth with First Licensed Starbucks Location in Orlando. Read more 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. From left to right: Nikki Garcia (Food and Beverage Manager, Peachtree Group), Ashleigh De Otis (Starbucks Store Manager, Peachtree Group),Rob Deininger (CEO AdventHealth Orlando) and Dan Puglisi (SVP, Peachtree Group) 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 Insight Private Credit 3 min read PEACHTREE GROUP HOSTS MARK ZANDI OF MOODY’S ANALYTICS: INSIGHTS ON U.S. ECONOMY, COMMERCIAL REAL ESTATE, AND INVESTMENT OPPORTUNITIES Peachtree Group welcomed Mark Zandi, Chief Economist at Moody’s Analytics, for our most recent Market Update. Mark is responsible for directing economic research across macroeconomics, financial markets and public policy and offered his insights into the U.S. economy's performance and near-term prospects, highlighting reasons for optimism while focusing on the stabilizing benefits for commercial real estate and private credit investments amid moderating inflation. Read more Peachtree Group welcomed Mark Zandi, Chief Economist at Moody’s Analytics, for our most recent Market Update. Mark is responsible for directing economic research across macroeconomics, financial markets and public policy and offered his insights into the U.S. economy's performance and near-term prospects, highlighting reasons for optimism while focusing on the stabilizing benefits for commercial real estate and private credit investments amid moderating inflation. Here are some key highlights from his presentation: Economic and Market Performance: 1. 2023 Real GDP Growth: Approximately 2.5%, surpassing expectations and indicating a strong year despite initial downturn concerns. 2. 2024 Real GDP Growth: Projected at around 1.5% for the first half, with an expectation of about 2% for the full year. 3. Unemployment: Currently just over 4%, a slight increase from previous years but still considered low. 4. Inflation: Continues to moderate, with current levels very close to the Federal Reserve's target of 2%. 5. Long-Term Rates: The 10-year Treasury yield is expected to stabilize around 4-4.5%, with mortgage rates potentially settling just below 6%. 6. Commercial Real Estate: The market is adjusting, particularly in the office sector, but overall price declines and transaction volumes are expected to stabilize over the next couple of years. Positive Developments: 1. Supply-Side Improvements: Increased immigration, productivity, and a surge in U.S. oil production have helped ease inflationary pressures. 2. Consumer Spending: High-income households are in a strong financial position, driving the economy forward despite struggles among lower-income households. Potential Risks: 1. Federal Reserve Policy: Concerns that if the Fed does not cut rates soon, it could lead to financial instability. 2. Election Outcomes: Potential for social unrest and policy uncertainty depending on the results. 3. Long-Term Fiscal Issues: High debt-to-GDP ratios and the potential for future fiscal crises if long-term fiscal challenges are not addressed. Investment Environment: We, too, are optimistic about the economy and believe a soft landing is the most likely scenario, aligning well with how we are investing our capital. While certain commercial real estate investments will experience challenges as they're calibrate to a higher-for-longer interest rate environment, it still remains a favorable climate for Peachtree Group’s near- and long-term capital investments in credit, as well as opportunistic strategies, including development in the hotel sector for the coming years. Overall, many of the overarching themes Mark discussed echo what we have observed in the market, specifically: 1. Stabilizing Interest Rates: The highly dislocated lending environment, with $2 trillion in loans maturing in the next three years, becomes more manageable as 10-year Treasury yields and mortgage rates stabilize, creating a predictable environment for financing and refinancing commercial real estate projects. This could lead to increased investment activity. 2. Inflation Moderation: As inflation moderates, cost pressures on property operations and development ease, enhancing profitability and investment returns. 3. Consumer Spending: Strong consumer spending, especially from high-income households, supports demand for commercial spaces in retail and hospitality sectors, despite current challenges. 4. Private Credit Opportunities: The dislocation in traditional lending markets creates significant opportunities for private credit investments, offering attractive, equity-like returns with relatively lower risk due to substantial equity buffers in transactions. 5. Regulatory Environment: Regional banks facing pressures may retreat from commercial real estate lending, opening opportunities for alternative lenders. This benefits private credit investors and those with capital for loan purchases and recapitalizations, leveraging the firm's disciplined processes and strategic real estate ownership. Mark Zandi, Moody's Mark Zandi is chief economist of Moody’s, where he directs economic research. Moody’s is a leading provider of economic research, data and analytical tools. Zandi was a co-founder of Economy.com, which Moody’s purchased in 2005. He is on the board of directors of MGIC, the nation’s largest private mortgage insurance company; is the lead director of Policy Map, a data visualization company; and is on the board of the Coleridge Institute, a non-profit that facilitates the use of data across federal, state and local governments. An influential source of economic analysis for businesses, journalists and the public, Zandi frequently testifies before Congress. He is the author of Paying the Price: Ending the Great Recession and Beginning a New American Century, which assesses the monetary and fiscal policy response to the Great Recession. His other book, Financial Shock: A 360º Look at the Subprime Mortgage Implosion, and How to Avoid the Next Financial Crisis, has been described by the New York Times as the “clearest guide” to the financial crisis. Zandi earned his BS from the Wharton School at the University of Pennsylvania and his PhD from the University of Pennsylvania, both in economics. Press Release Credit/CPACE 3 min read PEACHTREE GROUP CLOSES $40 MILLION IN CPACE FINANCING FOR AC HOTEL IN 23 DAYS Peachtree Group originated a $40 million retroactive CPACE loan to BLG SAN DIEGO, LLC (BLG) for its recently opened 147-room AC Hotel San Diego Downtown Gaslamp Quarter in Calif. The Commercial Property Assessed Clean Energy (CPACE) financing was amortized over 30 years and required no payment for a year, followed by five years of interest-only payments. Read more ATLANTA (June 24, 2024) – With ongoing credit market dislocations, Peachtree Group originated a $40 million retroactive CPACE loan to BLG SAN DIEGO, LLC (BLG) for its recently opened 147-room AC Hotel San Diego Downtown Gaslamp Quarter in Calif. The Commercial Property Assessed Clean Energy (CPACE) financing was amortized over 30 years and required no payment for a year, followed by five years of interest-only payments. Also, the proceeds allowed BLG to pay down its senior loan with California-based Preferred Bank and E. Sun Commercial Bank, Ltd. to under $20 million, there by mitigating the banks’ exposure. “This innovative capital structure significantly alleviated the immediate financial pressures, enabling the hotel to establish a solid cash flow foundation during its initial years of operation,” said Greg Friedman, Peachtree Group’s managing principal and CEO. Despite the U.S. hotel industry's strong RevPAR performance, multiple headwinds exacerbate financial stress for owners. These headwinds include the lagging profitability of U.S. hotels, persistently high interest rates and historically high property insurance costs. AC Hotel San Diego Downtown Gaslamp Quarter “When we opened the AC Hotel San Diego Downtown Gaslamp Quarter in March 2023, there was a sizeable disconnect between hospitality fundamentals, which are strong, particularly in San Diego, while the debt markets were deteriorating meaningfully,” said Brad Honigfeld, founder, chairman and co-CEO of the New Jersey-based Briad Group®.“ The Fed’s tightening process and rising fund rates drove up the cost of debt considerably.” Hotel and commercial real estate owners face a tough few years as trillions of dollars in debt come due, and refinancing gets harder, compounded by banks' tightened lending standards. According to JLL Research, by the end of 2024, $5.8 billion worth of U.S. hotel-securitized loans will be due for repayment, requiring full payment, refinancing, extension or sale. However, if these loans were refinanced at current interest rates, most would struggle to generate enough income to cover their debt costs. In this challenging lending market, Commercial Property Assessed Clean Energy (CPACE) financing has become a vital source of liquidity. This option is growing in importance as owners face impending debt maturities and scarce refinancing opportunities. CPACE financing has rapidly gained traction in the commercial real estate market, reaching a cumulative $7.2 billion in the U.S. in just over a decade, according to PACENation. This significant milestone underscores the growing acceptance and adoption of CPACE financing as an innovative and effective solution. Peachtree Group, a key player in this market, has demonstrated its commitment to CPACE financing, with over $800 million in CPACE originations. The AC Hotel San Diego Downtown Gaslamp Quarter is in downtown San Diego's Gaslamp Quarter, known for its restaurants, shops and nightlife. “Our hotel was benefiting from its location and performing to its original underwriting, but the debt costs were straining cash flows,” Honigfeld said. Retroactive CPACE funding offers unique advantages for property owners. It operates similarly to normal pre-project funding, with one key difference: 100% of the loan proceeds can be used to reimburse the property owner for costs already incurred. This feature makes retroactive CPACE a valuable resource for property owners seeking better loan terms or improved cash flow for completed projects. “The financial relief it provides not only ensures the hotel's success but also positions it for long-term stability. By reducing the financial burden in the early years, owners can focus on delivering exceptional guest experiences and achieving operational excellence,” Friedman said. This strategic approach paves the way for the asset to transition to a more favorable financing market in the future, ensuring its sustained profitability and growth. 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 View all About What We DoHistoryNews & InsightsJoin Our TeamFAQ Team Investments Credit/LendingAcquisitionsDevelopmentPortfolio Credit/Lending CRE/Hotel CPACE Film Investment Services Asset ManagementConstruction Proj. Mgmt.Capital MarketsEB-5DSTFilm FinancingHotel Mgmt. Hotel Mgmt. Find us at One Alliance Center 3500 Lenox Road, Suite 625 Atlanta, GA 30326 Get in Touch Phone 404-497-4111 Email info@peachtreegroup.com Connect with us on LinkedIn Peachtree GroupPeachtree Group CreditPeachtree Group Hospitality Management © 2023 Peachtree Group. All rights reserved. Privacy PolicyTerms of ServiceCookie Settings About About UsWhat We DoHistoryNews & Insights Careers FAQ Investments InvestmentsCredit/LendingAcquisitionsDevelopment Portfolio Investment Services Investment ServicesAsset ManagementConst. Project Mgmt.Capital Markets EB-5 DST Hospitality Management Credit/Lending Credit/LendingCRE/Hotel LendingCPACE Lending Team Credit/Lending Hospitality Management Find us at One Alliance Center 3500 Lenox Road, Suite 625 Atlanta, GA 30326 Phone 404-497-4111 Email info@peachtreegroup.com Get in Touch Connect with us on LinkedIn Peachtree GroupPeachtree Group CreditPeachtree Group Hospitality Management © 2023 Peachtree Group. All rights reserved. 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