Versatile Hotel Financing with both Senior & CPACE Origination
Home2 Suites by Hilton/Tru
Peachtree Group originated a $50.4MM first mortgage and a $22.4MM Commercial Property Assessed Clean Energy (CPACE) financing for the development of the dual-brand, 263-room Home2 Suites – Tru by Hilton Hotel located in San Diego, CA. This project highlights Peachtree Group’s competitive advantage by demonstrating its ability to fully execute both senior and CPACE loans. The firm’s expertise spans multiple loan types, and having highly skilled originators in each area reinforces Peachtree Group’s versatility and comprehensive financing capabilities.
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Strong Basis & Location
The project is located in one of the largest cities in the U.S., attracting over 30MM visitors annually, including 16.5MM overnight visitors in 2022. That year, visitor spending hit a record high of $13.6B, driven by significant increases in leisure demand, resulting in longer stays and higher expenditures. As of July 2023, hotel demand remained robust, with the city achieving the fifth-highest RevPAR among the top 25 U.S. hotel markets
Experienced Sponsor & Management Company
The sponsor, based in San Diego, is a long-term investor and a vertically integrated real estate development and management company with investments in hospitality, retail, and multifamily sectors. The sponsor is also an experienced operator, successfully owning and managing four hotels within one block of the new development. They plan to leverage cost-saving measures through streamlined operations, which offer efficiencies by reducing personnel headcount and centralizing functions such as accounting and sales
Proximity to Demand Drivers
The hotel’s location is renowned for its exceptional year-round climate, over 70 miles of coastline, emerging healthcare and biotechnology hubs, world-class hotel and convention spaces, and a wide array of dining and entertainment options. This area is a dynamic and growing life science and technology hub, boasting the third-largest concentration of life science companies in the U.S. San Diego has historically demonstrated greater resilience compared to other major West Coast hospitality markets. It is one of the top convention destinations globally, with the waterfront San Diego Convention Center located within a mile of the development. Tourism highlights include nearby beaches, Balboa Park, the San Diego Zoo, Campus at Horton Plaza, SeaWorld and the Air and Space Museum. The Research and Development District (RADD) is an 8-acre campus comprising office, lab, and retail space with a primary focus on life sciences, biotech, and research. Besides biotech, there is significant employment growth in high-tech and education sectors. The area’s largest employers include the Naval Medical Center, Sempra Energy, Aecom, Union-Tribune, MiTek and iProspec.
Peachtree Group is a senior bridge and construction lender that can provide CPACE financing on projects currently under construction or completed within the last 36 months. The program is available for all commercial real estate asset classes.
Learn more about CPACE financing or contact Peachtree's CPACE team.
Click here for current loan rates.
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Peachtree news and insights.
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Avoid Political Noise When Investing: A Market Update with Larry Adam, Raymond James
In our recent market update call, we hear insights from Larry Adam the Chief Investment Officer of Raymond James, alongside Greg Friedman, Managing Principal & CEO of Peachtree Group and Daniel Savage, VP Equity Capital Markets of Peachtree Group. One of the standout moments from the discussion was an intriguing investment takeaway that highlights the importance of consistent investing over trying to time the market based on political cycles.
Investment Insights Through the Decades
Consider this: if you had invested $10,000 in the stock market starting in 1970 and only remained invested during Republican presidencies, your investment would have grown to approximately $133,000 by now. Conversely, if you had only stayed invested during Democratic presidencies, your portfolio would have soared to around $700,000.
Now, here’s where the numbers become even more compelling. If you had stayed fully invested in the market, regardless of which party was in power, that initial $10,000 would have appreciated to an impressive $1.6 million!
The Lesson: Stay the Course
Timing the market based on political affiliation has proven to be less effective than maintaining a consistent investment strategy. As Larry Adam pointed out, “It's more important to be in the market than trying to find the market. I think that's a critical lesson…”
The volatility that comes with political changes can tempt investors to pull back or make hasty decisions. However, history shows that those who remain patient and invested through all market conditions tend to reap the greatest rewards.
The key is to be in the market, not trying to outsmart it.
About Larry Adam
Larry Adam joined Raymond James in 2018 as Chief Investment Officer. With over thirty years of experience in the financial markets, Mr. Adam brings a wealth of knowledge and valuable insights on the markets and economy to advisors and clients. As CIO, Mr. Adam develops the firm’s CIO view, a cohesive and comprehensive macro outlook, using insights and perspectives from the firm’s strategists. Mr. Adam presents at numerous client events and is renowned for his ability to explain complex concepts to investors.
Mr. Adam provides advisors and clients with in-depth guidance regarding the markets, including weekly and monthly commentary and quarterly outlooks. In addition to serving as President of the Investment Strategy Committee, he also sits on the Global Wealth Solutions (GWS) Diversity & Inclusion Campus Recruitment Committee, the GWS Executive Council, and the Alternative and Structured Investments Product Approval Committee.
Prior to joining Raymond James, Mr. Adam held the dual roles of CIO of the Americas and Global Chief Investment Strategist for Deutsche Bank Private Wealth Management. He received a B.B.A. with a concentration in finance from Loyola University Maryland in 1991 and received a master’s degree in business with a concentration in finance from Loyola University Maryland in 1993. Mr. Adam is an adjunct professor at the Sellinger School of Business and Management at Loyola University, teaching classes in International Finance. He received the Chartered Financial Analyst designation in 1996, the Certified Investment Management® certification in 2001 and the Certified Financial Planner® designation in 2004. Mr. Adam is regularly featured on CNBC and Bloomberg and is frequently quoted in well-known publications such as the Wall Street Journal and Barron’s.
Bloomberg TV: Peachtree CEO on Challenges in CRE, Market Trends and Why Private Credit
Peachtree Group CEO Greg Friedman joined Bloomberg TVs Abigail Doolittle to discuss the challenges in commercial real estate, market trends and why private credit.
Click here to see the entire episode which begins around 43:48.
Peachtree Group Launches Restaurant Management Division
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