As commercial real estate moves into 2026, many investors remain cautious. Interest rates are elevated, refinancing is harder, and a significant volume of debt is approaching maturity. Yet according to Peachtree Group CEO Greg Friedman, today’s challenges are often misunderstood.
“This is not a property issue or an asset-level issue in most cases,” Friedman said. “This environment, for the most part, is balance sheet driven.”
Where Pressure is Coming From
Across most property types, operating fundamentals remain relatively stable. The real pressure is coming from capital structures that were built in a much lower interest rate environment. As loans mature, many borrowers are discovering that refinancing now requires additional equity or a rethinking of their capital stack.
That challenge is being magnified by what Friedman describes as an unprecedented wave of loan maturities. “Over the next 12 months, close to a trillion dollars of commercial real estate loans are maturing,” he noted.
Opportunity for Investors
For investors, this dynamic is creating opportunity, particularly in credit. As banks pull back due to regulatory and balance sheet constraints, private lenders are stepping in at more attractive bases. “We’re buying loans or making loans at discounts to current value,” Friedman explained. “In many cases, we’re getting equity-like returns without having last dollar equity risk.”
At the same time, equity investing requires greater selectivity than in prior cycles. From 2010 to 2022, falling interest rates provided a powerful tailwind for valuations. That environment no longer exists. Today, equity returns depend on disciplined buying, asset management, and operational execution.
What’s Next
Looking ahead, Friedman expects 2026 to remain uneven but constructive. While refinancing pressure may persist in the near term, limited new supply and continued demand growth could support improved pricing power later in the year.
Key Takeaways
Listen to the full episode of Peachtree Point of View for Greg Friedman’s perspective on navigating commercial real estate in 2026.
ATLANTA and DALLAS (Jan. 22, 2026) Peachtree Group (“Peachtree”) today announced it has completed the acquisition of First Western SBLC, LLC (formerly known as First Western SBLC, Inc.), which operates as PMC Commercial Trust (“PMC”), a Dallas-based nationwide direct lender specializing in Small Business Administration (“SBA”) 7(a) loans. PMC will continue operating under its existing name following the transaction, which received approval from the U.S. Small Business Administration and closed effective today.
“This marks an important step forward for our credit business,” said Greg Friedman, Peachtree’s CEO and managing principal. “Founded more than four decades ago by my grandfather, Dr. Fred Rosemore, PMC brings a strong legacy into Peachtree that strengthens our ability to deliver fast, flexible SBA financing while maintaining the disciplined underwriting that defines our platform.”
Joining Peachtree is Barry Berlin, who will oversee the integration of PMC’s lending business and serve as senior advisor for government-regulated lending. In this role, he will support the firm’s broader credit platform by providing strategic guidance, regulatory expertise and deep institutional knowledge. Berlin previously served as CEO of PMC, managing director of finance at CIM Group, and CFO and secretary of Creative Media & Community Trust Corporation, PMC’s parent company.
Also joining Peachtree is Laurie Ivy, who has served as president of PMC since 2020, overseeing day-to-day SBA operations. She will continue in that role while assisting Berlin with platform integration.
“Laurie brings deep operational expertise and continuity to the PMC platform,” Friedman said. “Barry adds decades of experience across government-regulated lending and credit oversight. Together, their complementary roles will support a thoughtful integration and disciplined growth strategy.”
With the acquisition complete, Peachtree will offer SBA 7(a) loans ranging from $50,000 to $5,000,000 to support business acquisitions, real estate purchases, equipment financing, working capital and refinancing.
“Demand for SBA financing continues to accelerate as small business owners seek certainty, speed and trusted execution,” Ivy said. “Becoming part of Peachtree gives us the capital resources, infrastructure and long-term commitment needed to responsibly scale the platform while continuing to support entrepreneurs who rely on SBA loans to grow.”
PMC is one of only 12 Small Business Lending Companies licensed by the SBA to originate 7(a) loans and holds Preferred Lender Program status, enabling delegated authority and expedited closings.
“Peachtree has built a differentiated investment platform with the scale discipline and entrepreneurial mindset to grow through changing market cycles,” Berlin said. “We are fortunate to be joining a firm with such a strong culture, a long-term vision and a proven ability to expand thoughtfully into new strategies. This platform creates meaningful opportunities for continued growth while staying true to the values that have driven Peachtree’s success.”
CoStar | The hotel financing environment is shaping up to be a "tale of two cities" for borrowers this year.
Speaking on the latest episode of the CoStar News Hotels podcast, Jared Schlosser, head of originations and C-PACE at Peachtree Group, said 2026 will be a good year for well-positioned borrowers.
"I think for well-thought-out acquisition, business plan deals, for solid cash flow, for performing deals, for strong borrowers who continue to do what they say they're going to do, there's ton of liquidity," he said, noting that "on the flip side of that, you're seeing a lot of deals that are struggling."
In today’s evolving financial landscape, Daniel Siegel, President and Principal CRE at Peachtree Group, explains in this segment of Anatomy of a Deal, how the firm’s foresight and infrastructure have positioned it to thrive amid tightening bank lending. With $2.5 billion in projected transactions for the year, Peachtree Group continues to capture market share through disciplined middle-market lending and innovative capital tools like CPACE. Daniel explains how careful groundwork, sector experience and strong borrower relationships are helping the firm complete solid deals and continue growing its lending platform while delivering value to investors.
How Peachtree Group Anticipated the Lending Shift
Peachtree Group prepared early for tightening credit markets. “We staffed up and raised capital to prepare for it, and it turns out we were right,” said Daniel. As banks face regulatory pressure and balance sheet constraints, Peachtree Group’s lending platform has scaled rapidly.
“We’re on pace to do about $2.5 billion this year, up from $1.5 billion last year,” Daniel noted.
The firm focuses on middle-market commercial real estate loans, typically around $30 million, serving borrowers who need flexible capital partners with deep asset-level expertise.
What Sets Peachtree Group Apart in Today’s CRE Market, Executing High-Quality, Value-Driven Transactions
Unlike banks, Peachtree Group evaluates deals through a real estate-first lens. Daniel pointed to a recent note purchase in which the firm helped a sponsor finance the acquisition of a non-performing note secured by a nine-property 280-unit apartment portfolio in Oakland, Calif., showing how the team creates value through pricing discipline and a clear understanding of the underlying assets.
“We’re not just buying loans, we’re also evaluating real estate fundamentals and structuring transactions that make sense for both the sponsor and our investors,” he said.
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In hospitality, Peachtree’s specialized knowledge helps close deals others might avoid. The Westin Duluth financing highlights this edge: “We understand hotels and, just as important, we know how to manage them. We execute when others hesitate,” Daniel said.
How CPACE Is Expanding Borrower Options
Peachtree Group’s leadership in CPACE lending continues to unlock new capital strategies. In one high-profile recapitalization, the firm used CPACE as rescue capital, securing a first-position loan backed by $750 million in fresh equity.
“It turned a lot of heads and opened new opportunities for how CPACE can be applied,” Daniel shared.
This innovation reflects Peachtree Group’s ability to structure custom capital stacks that fit unique borrower needs.
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Investing in People and Future Growth
The firm continues to strengthen its platform with strategic hires. In fact, we have former borrowers who joined Peachtree Group’s origination team. Most recently, we did just this with Zac Chandler who joined the team in the newly created position of SVP, government lending. “It’s the ultimate compliment when a borrower becomes an employee,” Siegel said.
Discover how Peachtree Group structures creative, reliable financing solutions for commercial real estate. Visit peachtreegroup.com/credit to explore our lending solutions.
