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

The Opportunity
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.
The Financing Structure
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.
Why CPACE + Senior in One Package Matters
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.
Relacionado
Casos prácticos
Quédate informado.

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

Peachtree Closes 17 loans totaling more than $244MM in the last 90 days
Peachtree Group Closed 17 loans totaling more than $244MM in the last 90 days
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. Click here for our portfolio.
%20(400%20x%20400%20px)%20(1).gif)
Need Financing? Contact us at lending@peachtreegroup.com.
FEATURED: $20.5MM Development Loan for a Conversion

Peachtree Group worked with the Sponsor to convert a retail store to an industrial building in a sought-after area of Sacramento, CA.
Read the Case Study.
FEATURED: $12.5MM Bridge Loan for a Hotel

Peachtree Group worked with the Sponsor to pay off its maturing loan while executing a business plan to upgrade its property to better compete in the marketplace and retain its Hilton flag.
Read the Case Study.
Peachtree is an award-winning hotel lender. Contact us to discuss your deal.