Versatile Hotel Financing with both Senior & CPACE Origination

Property Type
Hotel
Investment Type
CPACE Lending
Brand
Hilton
Date of Investment
December 2023
Location
San Diego, CA
Keys
263
Units
Square Footage
CPACE Lending
CPACE
CPACE Lending
CPACE
CPACE Lending
20% CPACE
CPACE Lending
$22.6MM CPACE $50.4MM Senior

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.

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.

Peachtree news and insights.

Insight
General
5 min read

Every Move Matters: Navigating the New Era of Commercial Real Estate

Market Insights Q1 2025 | At Peachtree, we've built our platform for this exact environment. With a fully integrated investment and credit platform, deep experience across market cycles, and flexible capital ready to deploy, we're well-positioned to take decisive action when others hesitate.

You don't think twice about skipping a workout or hitting snooze, until six months later when your back goes out lifting a suitcase. That's the thing about choices: they rarely shout. Most whisper. At the moment, they feel light, harmless, and even forgettable. But over time, they stack up and eventually shape everything.

It's the same in commercial real estate.

For years, the market rewarded financial engineering. Falling interest rates, cap rate compression and cheap capital allowed many investors to ride the momentum and still generate strong returns. That era is over.

We're now operating in a higher-for-longer environment. Interest rates are elevated, traditional lenders have pulled back, and capital markets are volatile. Macroeconomic disruptions, geopolitical risk and inflation-shifting trading policy are repricing risk in real time.

In this environment, every move matters. Every decision, whether to buy, sell, recapitalize or hold, carries more weight than it did even a year ago.

 · Capital must be deployed with precision. The margin for error has narrowed. Mispricing risk, overleveraging,or relying on optimistic underwriting can quickly impair a deal.

 · Liquidity is a strategic advantage.In a market where many lenders have pulled back or lowered leverage, execution certainty is no longer assumed. It's earned.

 · Fundamentals, not financial engineering, define success. Cap rate compression is no longer the tailwind it once was. Returns must come from operational excellence, asset quality and disciplined management.

· Time is costly. In action can be just as damaging as a poor decision. Delays in refinancing or hesitation in uncertain markets can weigh heavily on performance.

At Peachtree, we've built our platform for this exact environment. With a fully integrated investment and credit platform, deep experience across market cycles, and flexible capital ready to deploy, we're well-positioned to take decisive action when others hesitate.

Because in this market, as inlife, every action has a weight and the most successful outcomes are born from clarity, discipline and conviction.

Private credit remains one of the most compelling solutions in today's market, offering downside protection, yield and flexibility. And with traditional capital still constrained, special situation investing is gaining momentum as a primary strategy to unlock value in a dislocated market.

As the landscape evolves, we continue to seek opportunities that leverage our strengths and provide value to our investors.

 

— Greg Friedman | Managing Principal & CEO of Peachtree Group
Press Release
General
5 min read

Peachtree Group CEO Recognized as 2025 Industry Leader in Commercial Real Estate Finance

Peachtree Group 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.

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.

Press Release
Credit
5 min read

Peachtree Group Closed 22 Loans Totaling $487.8MM in the Last 90 Days

Peachtree Group Closed 22 Loans Totaling $487.8MM in the Last 90 Days

May 2025

Peachtree Group is a nationwide direct balance-sheet lender, offering competitive terms, in-house loan servicing, and flexible capital to handle a wide array of projects.

Peachtree provides full-stack debt capital solutions to qualified commercial real estate owners across all sectors throughout the U.S. We offer bridge, construction, mezzanine, preferred equity, CPACE, permanent and NNN financing.

See below for some of the most recent loan transactions from Peachtree Group including hotel loans, retail, multifamily, industrial, and land.

Need Financing? Contact us at lending@peachtreegroup.com.

Peachtree Group Closed 22 Loans Totaling $487.8MM in the Last 90 Days

In The News