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A prominent investor who shaped modern portfolio strategies, Robert Arnott, once said, 'In investing, what is comfortable is rarely profitable.'
This idea rings especially true in today's market, where uncertainty, volatility and shifting economic conditions create both risks and opportunities. The most successful investors recognize that these periods often present the most compelling investment opportunities.
We, too, see these moments as catalysts for strategic capital deployment. The evolving commercial real estate landscape is creating precisely the kind of dislocation where disciplined, well-capitalized investors can thrive.
As our team assesses the commercial real estate landscape, recent developments in the credit markets continue to present compelling opportunities.
The latest banking data reveals a noteworthy shift: while demand for C&I loans rises for the first time in two years, banks continue tightening the grip around commercial real estate.
Despite increasing demand for liquidity, traditional lenders remain highly selective, offering lower loan-to-value ratios and requiring stronger borrower covenants. As a result, many commercial real estate owners and developers face significant refinancing challenges, particularly with the substantial level of debt maturities in 2025 and beyond. We are talking about trillions of dollars in loan maturing.
This dynamic reinforces a growing reliance on private credit lending, a space where our firm not only has a long track record but is also well-positioned to capitalize on ongoing market dislocations to deliver attractive, risk-adjusted returns.
Our firm's ability to pivot across the capital stack—originating loans, acquiring debt or investing opportunistically - positions us to capitalize on this dislocation.
With rising debt costs and limited refinancing options, many commercial real estate owners will be forced to make tough decisions. While this warning has been repeated over the past few years, we are now at the proverbial end of the line. As a result, we anticipate an increase in asset sale opportunities, acquiring first mortgages and recapitalizations.
Our experience in navigating prior downturns, coupled with our underwriting expertise, allows us to approach these opportunities with discipline, ensuring we secure assets and debt positions at favorable valuations.
As we move through this evolving economic cycle, our focus remains on the disciplined deployment of capital into opportunities that offer strong upside potential while minimizing the downside.
We recognize that market dislocations create compelling entry points for special situation investments. As liquidity constraints tighten across key sectors, we are strategically positioned to deploy capital into high-value opportunities. In hospitality, the deferral of brand-mandated renovations is reaching a breaking point, driving distress and accelerating transactions—further reinforcing the need for flexible, well-capitalized investors to step in.
Our experience in stressed investing and structured finance enables us to use creative solutions when traditional capital sources are unavailable. By maintaining a flexible approach and strong liquidity reserves, we are positioned to act decisively as the market turns, capturing value where others cannot.
The favorable landscape for private credit lending will remain with us for years, but as it evolves, it is also creating new opportunities that we are poised to seize. Our ability to deploy capital where others cannot continue to drive outsized value for our stakeholders.
Reuters | US summer flight bookings are down 10% year-on-year — even though airfares are cheaper — and the airline sector is lagging behind the wider market. Nevertheless, Greg Friedman of Peachtree Group says the market will pick up and even benefit in 2026.
Schwab Network: With the summer season well underway, Greg Friedman is bullish on hotel and travel stocks. He believes there's favoritism toward some companies that investors may not realize unless they look under the surface. Greg breaks down the trends he sees to explain why optimism is high for companies like Hyatt (H), Hilton (HLT), and Airbnb (ABNB).
ATLANTA (July 21, 2025) - Peachtree Group (“Peachtree”), a leading vertically integrated commercial real estate investment platform, today announced the launch of its Peachtree Special Situations Fund, a $250 million fund designed to unlock value in mispriced, high-quality hotel and other commercial real estate assets due to today’s capital market illiquidity rather than underlying fundamentals.
“We believe the next 12 to 18 months offer some of the most compelling risk-adjusted opportunities we’ve seen since the global financial crisis,” said Greg Friedman, managing principal and CEO of Peachtree. “As balance sheet stress and refinancing hurdles intensify in the hotel space and other commercial real estate sectors, Peachtree is uniquely positioned to deploy capital where it’s needed most, delivering attractive returns while providing real solutions for sponsors and lenders alike.”
With nearly $1 trillion in commercial real estate loans maturing in 2025 and hotels carrying some of the largest refinancing and capital expenditure burdens, Peachtree’s Special Situations Fund is positioned to step in where traditional capital has pulled back.
Many hotel and commercial real estate owners who financed properties in the zero-interest-rate era now face gaps in their capital stacksas rates remain elevated and liquidity tightens. Peachtree’s strategy bridges this gap by providing creative downside-protected capital solutions to reposition assets and unlock embedded value.
“This fund is about capitalizing on dislocation, not chaos,” Friedman said. “We’re targeting high-quality assets not distressed by systematic factors but by capital structure, and we’re doing it with the speed, creativity and certainty of execution that have defined Peachtree’s reputation for more than a decade.”
The Special Situations Fund targets investments that sit between value-add and opportunistic, combining attractive upside potential with meaningful downside protection. Core strategies include:
· Off-market acquisitions: Securing underperforming or mispriced hotels as well as select multifamily, student housing, self-storage and other commercial real estate sectors for repositioning and stabilization.
· Preferred and hybrid equity solutions: Providing flexible capital to sponsors needing liquidity for acquisitions, development or refinancing with structures designed to protect basis and enhance current yields.
· Distressed purchases from lenders: Acquiring assets directly from banks through deed-in-lieu or post-foreclosure transactions, often at discounts to outstanding loan balances and well below replacement cost.
Peachtree’s fully integrated platform spans direct lending, CPACE financing, development, acquisitions and capital markets and provides a unique lens into shifting market dynamics. Long standing relationships with community and regional banks and other stakeholders enable Peachtree to source high-value opportunities early before they reach the broader market.
“We’re the first call when a sponsor or lender needs a fast, reliable solution,” Friedman said. “Speed and surety of close are critical in this environment, especially when dealing with complex capital stacks and distressed notes.”
The fund’s geographic focus is nationwide, with significant deal flow expected in markets with strong demand fundamentals and recent pricing resets, including Texas, Florida and California. Peachtree expects to hold its first close within the next 60 to 90 days and complete the final close within its targeted 18 months following the initial close.
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Fund Information
THIS IS NOT AN OFFER OR SOLICITATION TO PURCHASE ANY SECURITY. AN OFFERING IS MADE ONLY BY THE PRIVATE PLACEMENT MEMORANDUM. SECURITIES OFFERED THROUGH PEACHTREE PC INVESTORS, LLC MEMBER FINRA/SIPC.
