Senior + CPACE: Integrated Capital Solution for $57.5MM Multifamily Development

In January 2025, Peachtree Group successfully originated a $57.5MM senior debt package for Harrington Place, a 350-unit multifamily development in Ferndale, Washington. The transaction included a $29MM Commercial Property Assessed Clean Energy (CPACE) loan and a $28.5MM first mortgage, showcasing Peachtree's ability to deliver a seamless capital stack under one roof.

Atlanta-based Peachtree Group financed Arlington, Washington-based developer Grandview North's development of Harrington Place, a Class A apartment community located 10 miles northwest of Bellingham in a high-growth corridor between Seattle and Vancouver. The $90MM project had previously encountered construction delays due to permitting issues, requiring a recapitalization of its original financing plan.

With permitting in hand and momentum back on track, Grandview needed a flexible and reliable lender that could fund construction and provide CPACE financing under one streamlined platform.

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Peachtree's solution was structured as follows:

• $29MM fixed-rate CPACE loan with a 30-year term and repaid through property tax assessments.
• $28.5MM floating-rate construction loan with an 18-month initial term and extension options.
• $13MM of the senior debt funded at closing.
• The financing also included a $20 million mezzanine loan from Hickory CRE Lending to align its maturity with the Peachtree senior facility.

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While CPACE financing offers long-term, low-cost capital for energy-efficient development, many developers struggle to find senior lenders willing to accommodate it. Peachtree eliminates this hurdle by providing CPACE and senior debt side by side.

"By providing borrowers with debt solutions across the capital stack—including CPACE—we allow them to maximize efficiency and value creation without the friction typically associated with piece meal capital sourcing," said Jared Schlosser, executive vice president, hotel originations and head of CPACE, Peachtree Group.

Takeaway

This deal illustrates how Peachtree's vertically integrated approach, combining CPACE and senior debt into a unified structure, can streamline execution and accelerate delivery for development projects. As developers increasingly seek capital partners who can simplify complexity, Peachtree's solution-driven model is poised to lead the way. Learn more about the deal here.

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