From Challenges to Opportunities: Navigating the Senior Living Housing Market with CPACE Financing

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As we move deeper into 2025, the market remains defined by volatility, dislocation and uncertainty. At Peachtree Group, we don’t wait for clarity, we lead through complexity. Despite persistent interest rate headwinds and shifting investor dynamics, our senior leaders see not just challenges but opportunities to deploy capital with precision, creativity and discipline. Here they share candid insights on navigating this evolving landscape, uncovering value where others see risk and positioning Peachtree to emerge stronger on the other side of the cycle.

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“The truth is, we’re not waiting for a storm—we’re already in it. In any storm, pain is inevitable, but suffering is optional. For the past several years, we’ve operated in a market shaped by disruption: historic rate hikes, geopolitical shocks and policy uncertainty. We had hoped that we would have seen the darkest moments already, but this cycle had other plans. We’re navigating headwinds in real time, positioning ourselves to endure and emerge stronger. The next six months will likely bring continued volatility with persistent inflation, higher-for-longer interest rates and fragmented capital markets. Still, within that turbulence, signals of clarity are beginning to emerge. As visibility returns, whether through promised tax reform, trade resolution or regulatory recalibration, so too will stability. Our approach is simple. We don’t ignore the storm; we prepare for it. We position our portfolio not to avoid pain but to minimize unnecessary suffering. We are beginning to see the light and are positioned to lead as it returns.” — Greg Friedman, Managing Principal and CEO

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“As a team, we’ve successfully navigated downturns, market volatility and shifting political and economic landscapes.  Each disruption has only strengthened our resilience and sharpened our edge.  While others view unpredictability as discomfort, we see it as an opportunity. It is the space where we thrive, uncovering opportunities to deploy capital and generate exceptional returns.”      — Jatin Desai, Managing Principal and CFO

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“Volatility continues to define the CRE landscape, disrupting early signs of recovery and forcing a rethink for many market participants. At Peachtree, we remain focused on fundamentals such as location, sponsorship, basis and demand drivers, which tend to outperform through cycles. With traditional lenders pulling back, we are actively financing high quality assets at a premium yield and expect continued opportunity in refinances, loan purchases and situations where execution, not momentum, is what matters.”   — Michael Harper, President, Hotel Lending

 “The uncertainty of the next 12 months isn’t just about the horizon; it’s about the volatility we face week to week. As transactions pick up, we’ll see the true impact of the value reset, prompting re-margining, recapitalizations or dispositions across the board. With investor liquidity constrained and borrowers under pressure, we expect a rise in structured equity solutions and accelerated asset sales, especially if employment softens and fundamentals weaken.” — Michael Ritz, Executive Vice President, Investments

“We’re operating in a higher-for-longer rate environment, but deals are still getting done—and the dislocation we're seeing now is creating actionable opportunities rather than road blocks. Broken capital stacks, rising distress, and general uncertainty are revealing compelling entry points for preferred equity and rescue capital, where we can participate in upside while preserving downside protection. At Peachtree, we thrive in moments like this—our creative structuring and execution strength allow us to play offense while others wait for clarity.” — Michael Bernath, Senior Vice President, Acquisitions & Dispositions

“Over the next 12 to 18 months, investors will find compelling opportunities to generate attractive, non-correlated alpha through private credit and special situations. Peachtree is actively capitalizing on market dislocation and mispriced risk with strategic, nimble allocations across the capital stack. This environment allows us to play selective offense and deliver strong performance for our LPs. — Daniel Savage, Senior Vice President, Investments & Strategy

“Capital markets volatility, especially in the CMBS and CRE CLO space, creates a unique advantage for lenders like Peachtree that do not rely on securitized executions. As banks are pressured to offload sub-performing loans, we see strong opportunities in the $20–75 million loan range, mainly through deeper stretch senior structures. We remain optimistic about exiting pre-COVID investments and expanding strategies that capitalize on today’s pricing dislocation and policy-driven market shifts.”       — Jeremy Stoler, Executive Vice President, Debt Capital Markets

“Market dislocation will drive meaningful opportunities for Peachtree, particularly as refinancing challenges and reduced liquidity sideline many market participants. Sectors like hospitality, multifamily and land remain attractive, especially where bridge and construction lending can solve capital stack gaps. With fewer players in the space and distress beginning to surface, we’re well positioned to deploy capital where others can’t or won’t.” — Jared Schlosser, Executive Vice President, Hotel Originations and Head of CPACE

“Commercial real estate is navigating a uniquely complex moment, shaped by macro pressures like tariffs, inflation and geopolitical fragmentation, and micro realities such as capital expenditure burdens, labor inflation and localized demand shifts. In hotels where reinvestment is non-negotiable and operating costs are rising, the ability to underwrite location, efficiency and adaptive revenue strategies is critical. Today’s dislocation lies in broken capital stacks with unfinished developments, over-leveraged deals, and liquidity-starved sponsors, which are offering compelling opportunities for well-positioned credit investors who can move with precision and discipline.” — Sameer Nair, Senior Vice President, Equity Asset Management

“Uncertainty is sidelining many investors, but that’s precisely where opportunity emerges. We see the most actionable dislocation in debt today, with equity and preferred equity likely to follow. Bridge lending remains compelling, but flexibility across the capital stack is key. While others pause, we’re leaning into select development, knowing today’s starts will be tomorrow’s top assets. Peachtree has grown the most during disruption, and we believe this next cycle will be no different.”      — Brian Waldman, Chief Investment Officer

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ATLANTA (May 5, 2025) - Peachtree Group (“Peachtree”) is proud to announce that Greg Friedman, managing principal and CEO, has been recognized among the 2025 Rainmakers in CRE Debt, Equity & Finance by GlobeSt.,and named to Commercial Observer’s prestigious Power Finance list. These industry-leading accolades highlight Friedman's exceptional leadership, strategic innovation and enduring impact on the commercial real estate finance landscape.

Inclusion on the GlobeSt. Rainmakers list acknowledges Friedman's ability to navigate one of the most challenging commercial real estate finance periods. Amid elevated interest rates, tightening capital markets and declining valuations, Friedman has led Peachtree's vertically integrated management platforms with clarity and conviction. His approach has helped stakeholders unlock value, access liquidity and capitalize on market dislocation.

Commercial Observer’s Power Finance list further affirms Friedman’s influence and adaptability. As lenders retracted and transaction volume slowed, Peachtree continued to deliver creative capital solutions from originating loans to establishing strategic partnerships and playing across the capital stack. Under Friedman’s leadership, Peachtree has remained a dependable partner known for its certainty of execution, critical expertise and a solutions-driven mindset. 

“These recognitions are a testament to Greg’s vision and our entire team’s commitment to being a steady force in an unpredictable market,” said Jatin Desai, managing principal and CFO of Peachtree. “Our strategy has always centered on disciplined investing, innovation and building strong relationships. Greg has set the tone.”

Peachtree’s success is powered by a high-performing, deeply experienced team that brings together the full spectrum of credit, equity, development and asset management expertise. This collective strength allows the firm to respond decisively to market shifts, underwrite with conviction and deliver solutions others can’t.

Peachtree has executed over $12 billion in commercial real estate transactions since inception. Its integrated platform aligns real estate, credit and capital markets expertise, positioning the firm to identify opportunities, deploy capital efficiently and manage risk across cycles.

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ATLANTA (May 2, 2025) - Peachtree Group, a leading commercial real estate investment firm with a multi billion-dollar portfolio of equity and debt investments, has launched its latest hotel property structured as a Delaware Statutory Trust (DST), the 114-key Residence Inn Ocean Township, located along the Jersey Shore in N.J. This marks Peachtree’s eighth DST offering since launching the program in 2022.

“This newly developed property represents everything we look for in a DST offering, strong market fundamentals, a leading extended-stay brand and long-term upside driven by secular tailwinds in travel,” said Tim Witt, president of 1031 Exchange/DST Products at Peachtree.

Residence Inn Ocean Township is located in Monmouth County, one of the wealthiest counties in the U.S., known for its high median incomes and vibrant year-round economy. The hotel benefits from proximity to popular beach destinations such as Asbury Park, Long Branch and Sandy Hook, supporting steady leisure demand. The region’s diverse economy, anchored by healthcare, education and technology, drives consistent lodging needs throughout the year. Looking ahead, Netflix is investing $900 million to redevelop nearby Fort Monmouth into its primary East Coast production hub, a project expected to create 3,500 construction jobs and 1,500 permanent jobs, as well as further boost hospitality demand.

“With the opening of Residence Inn Ocean Township in 2024, we’re providing investors access to a debt-free, income-generating asset in a premier coastal market. It’s a strategic fit for investors seeking tax deferral through a 1031 exchange while preserving exposure to one of the most resilient sectors in commercial real estate,” Witt said.

Peachtree’s DST properties present a compelling option for 1031 exchange investors seeking to reinvest proceeds from the sale of appreciated real estate while deferring taxes and maintaining exposure to the hotel sector. The firm’s eight DST offerings total more than $220 million in debt-free real estate transactions, each aligned with Peachtree’s core strategy of acquiring recognized hotel brands in high-growth markets, pursuing value-add opportunities and leveraging experienced hotel management teams to drive long-term performance and value creation.

Peachtree continues to align with the core principles of the 1031 exchange, offering investors a seamless and tax-efficient path to transition capital gains into passive income-producing real estate investments.

_{Securities offerings are distributed by Peachtree PC Investors, LLC, member: FINRA/SIPC. This announcement does not constitute an offer to buy securities. DST Interests are illiquid, speculative and involve a high degree of risk.  Prospective Investor should consult with his, her or its own tax advisor regarding an investment in DST Interests and the qualification of his, her or its transaction under Section 1031 for his, her or its specific circumstances.}