Statista estimates the value of the commercial real estate market will reach $24.67 trillion in 2023. According to the Deloitte Center for Financial Services 2024 industry outlook, half the industry expects the cost of capital and capital availability to worsen through next year. Couple that with the $1.5 trillion wall of debt maturing before the end of 2025 and it’s easy to understand the trepidation in the market today.
But we’ve been here before.
The credit team at Peachtree Group has completed hundreds of transactions worth north of $15 billion. In our collective careers, we have seen borrowers navigate unstable markets, such as what we are experiencing today, in a variety of different ways.
Here are five tips for borrowers trying to navigate today’s difficult market, and secure funding for their project.
Acknowledging your Situation
It has been a borrower’s market for several years now, and this is not one of them. Do not forsake the term sheet in your hand – the Fed has raised interest rates 11 times since March of 2022. Spending too much time on turns of a term sheet might leave you losing any spread concessions to increases in the benchmark or, even worse – lenders deciding to pull terms altogether. If you have an offer from someone you trust, you might want to take it.
Grass Isn't Always Greener
On existing projects, your current lender is most likely your best friend. A lender willing to give you an extension is gold in this market. Getting additional terms out of your current lender is likely the least costly option, even if it comes with fees and a rate increase – it likely is still significantly less costly than what the current market will give you. However, I hope that you have been a good borrower – up to date on deliverables, communicative about the status of your project, etc. – make no mistake, the bank is doing you a favor, don't give credit committee a reason to say no.
Have you Considered CPACE
Being one of the largest CPACE originators in the country, Peachtree has seen a significant increase in pipeline looking to apply proceeds retroactively. Properties are eligible for CPACE up to 3 years after certificate of occupancy in approved municipalities and proceeds can generally be up to 35% of stabilized value. It’s a source of capital that has become more interesting to first mortgage lenders as the proceeds could be used to paydown your first mortgage and size a new interest reserve.
Try to Pay for your Overages and Carry Upfront
We pride ourselves on being lenders who want to be part of the solution when a deal has a budget bust or stabilization is taking longer than anticipated. However, I always encourage borrowers to size up their budget contingencies (i.e., 7% vs. 5%) or structure additional interest reserves. Yes, it will increase your initial capitalization, but your lender will pick up 60-70% of that cost in the loan funding. It may mean more work on the initial capital raise, but it's usually less costly than going back to your lender and/or equity mid-project to get additional capital.
Communication, Honesty and Transparency are Key
Lenders have access to data and information. They ultimately will discover the truth; it might as well come from you. This includes prior credit aberrations or issues and accurate property performance information. We have capital specifically for lending on special situations – there are a lot of deal-level risks that can be mitigated, but lack of trust with sponsorship is not one of them.
In uncertain times, hope for the best but prepare for the worst. Peachtree is an experienced capital partner who understands commercial real estate's nuances. With funding options limited from traditional lenders, our team has the lending solutions, financial capacity, and expertise to close complex transactions in today's challenging capital market environment.
We are available to discuss your lending options that meet your business objectives. Visit us at www.peachtreegroup.com.
Daniel Siegel is president and principal of Peachtree's commercial real estate lending group.
Before joining Peachtree, he was with Ardent Companies as managing director and the head of high-yield investments leading the company’s debt investments. Prior to that, Daniel was vice president of acquisitions at Rialto Capital, overseeing the distressed loan acquisitions platform. During his tenure at Rialto, Daniel directly oversaw the acquisition of commercial real estate loans on domestic and international opportunities. Additionally, he developed the firm’s small balance loan acquisition platform and led the company’s first European acquisition.
Daniel has a bachelor’s degree in finance from Tulane University. Contact him at dsiegel@peachtreegroup.com.
Related posts


In the latest episode of Peachtree Point of View, host Greg Friedman delves into the world of private credit lending with Daniel Siegel, head of Peachtree Group's commercial real estate lending platform. Together, they unpack how today's evolving market landscape is opening doors to compelling private credit investments.
Market Dynamics and Opportunities
The market is at an inflection point, with treasury yields north of 4.5% and nearly $2 trillion in commercial real estate loans maturing over the next 24 months. Siegel observes, "If you bought in 2020-2022, there's a good chance you've experienced some value deterioration." This trend has pressured multifamily valuations, which have dropped by 20-25%, yet fundamentals remain solid, with properties continuing to maintain healthy occupancy.
The discussion highlights an intriguing paradox: while many assets face valuation challenges, they continue to perform well operationally. This disconnect is creating opportunities for sophisticated investors, particularly as banks contend with increasing regulatory pressure to reduce their commercial real estate exposure. Siegel shares an interesting case study of a Massachusetts multifamily project where his team stepped in to provide a creative financing solution that benefited both the original lender and the borrower.
Property Sector Analysis
The episode also offers nuanced insights into various property sectors. As mentioned, multifamily, while grappling with near-term pricing pressure, holds strong long-term fundamentals. Hospitality demonstrates remarkable resilience, leveraging its daily pricing power. Retail has emerged stronger after years of supply rationalization. Conversely, office assets present a mixed picture—Class A properties maintain performance, while secondary assets face substantial challenges.
Strategic Advice for Borrowers
For investors exploring private credit opportunities, Siegel emphasizes the importance of working with experienced managers equipped with the infrastructure for loan servicing and workouts. "It's easy to write loans," he notes. "It's the infrastructure needed to work them out that matters."
Drawing on Peachtree Group's 17-year track record and over $11 billion in commercial real estate investments, the discussion underscores the firm's ability to provide creative financing solutions while maintaining conservative underwriting (typically 65-70% LTV).This approach has helped the firm to capitalize on market dislocations while effectively managing risk.
With its seasoned expertise and innovative strategies, Peachtree Group continues to lead the way in delivering strong risk-adjusted returns on its investments. This episode is filled with actionable insights and strategic guidance for navigating today's complex market environment.
Listen to the full episode to hear detailed discussions on:
- Current market dynamics and opportunities
- Property sector analysis and outlook
- Keys to selecting private credit managers
- Strategic advice for borrowers in today's market

Peachtree Group Exceeds $1.0 Billion in Commercial Real Estate Originations

ATLANTA (Oct. 14, 2024) – Peachtree Group ("Peachtree") announced that its credit team has surpassed $1 billion in loan originations year-to-date, marking a major milestone and setting a new benchmark for the firm's performance this early in the year. The firm anticipates that its credit team will surpass $1.75 billion in loan originations in 2024.
“While the Federal Reserve has lowered rates to provide some relief to the overall economy, the commercial real estate sector will continue to face significant headwinds over the next few years,” said Jared Schlosser, executive vice president of hotel lending and head of CPACE for Peachtree.
.png)
The wave of debt maturities in the trillions of dollars positions private credit lenders like Peachtree to step in and close the funding gap left by traditional capital sources.
“With conventional lenders still on the sidelines, we have seen a significant shift in capital markets with private credit lenders supporting the industry as it faces a sharp rise in debt maturities potentially approaching $1.5 trillion through 2025,” Schlosser said.
Peachtree is ranked as the seventh-largest U.S. commercial real estate investor-driven lender by the Mortgage Bankers Association in its latest loan origination rankings.
As a direct lender in the commercial real estate space, Peachtree offers a wide range of financing solutions, including permanent loans, bridge loans, mezzanine loans, CPACE (Commercial Property Assessed Clean Energy) financing and preferred equity investments across all commercial real estate sectors.
Hotels represented the largest sector and surpassed $639 million in credit transactions year-to-date, marking a 176% increase compared to the same period last year. Multifamily originations are the next most significant sector, with the two asset classes accounting for 80% of all credit transactions.
Notable credit transactions closed this year:
· $47.0 million first mortgage loan for a multifamily property in Bradenton, Fla.
· $41.9 million first mortgage loan for a Kimpton Sylvan hotel in Atlanta, Ga.
· $40.0 million CPACE financing for an AC hotel in San Diego, Calif.
· $38.5 million first mortgage loan for a multifamily property in Miami, Fla.
· $26.4 million first mortgage loan for a Hampton Inn in Columbus, Ohio
“Peachtree has built a strong financial foundation over the years, giving it the stability to support commercial real estate owners in securing the funding needed for acquisitions, recapitalizations and development projects,” Schlosser concluded.
About Peachtree Group
Peachtree Group is a vertically integrated investment management firm specializing in identifying and capitalizing on opportunities in dislocated markets, anchored by commercial real estate. Today, the company manages billions in capital across acquisitions, development and lending, augmented by services designed to protect, support and grow its investments. For more information, visit www.peachtreegroup.com.

Brent LeBlanc Tapped to Spearhead Business Development for Peachtree Group
.png)
ATLANTA (Sept. 30, 2024) – Peachtree Group (“Peachtree”) is pleased to announce that Brent LeBlanc is now leading the firm's business development efforts across its investment platforms. In his new role as executive vice president, business development, Brent will support Peachtree's efforts to grow and expand its vertically integrated investment platforms. His responsibilities will include focusing on cross-marketing strategies, fostering business development and collaborating closely with the investment teams to drive innovation and capture new opportunities.
With roughly 30 years of hospitality real estate experience, LeBlanc has successfully launched hotel brands and completed complex real estate transactions with the largest hotel operators and developers in the U.S.
"This year, Peachtree surpassed $10 billion in transaction investment value, and we see a tremendous opportunity to grow our business further but realize we need to prioritize our business development efforts to enhance our competitive edge in the market,” said Greg Friedman, Peachtree's managing principal and CEO. “Brent is a long-serving trusted leader and the right person to guide Peachtree's business development forward effectively.”
LeBlanc joined Peachtree in 2012 to lead an aggressive growth strategy to expand Peachtree’s footprint into the western U.S. and strengthen relationships with premium-branded hotels such as Marriott, Hilton, Hyatt andIHG. During that time, LeBlanc participated in more than $4.0 billion in real estate transactions across the enterprise.
"The core of our business development efforts is a strong commitment to innovation and strategic partnerships,” said LeBlanc. “We are dedicated to identifying and capitalizing on new opportunities to ensure the firm's growth and long-term success. By continuously adapting to market trends and fostering a culture of collaboration, we are well-positioned to drive our business forward and achieve outstanding results."
LeBlanc most recently served as executive vice president, capital markets, building and expanding the leadership team for Peachtree's broker-dealer affiliate, Peachtree PC Investors ("PPCI"). He has been instrumental in scaling up PPCI’s capital markets, investor relations and sales efforts and strengthening its financial and compliance operations. Most notably, he brought in Brian Cho as PPCI's president last year, who will continue to oversee all areas of equity capital markets.
"By prioritizing business development, we are positioning ourselves to capitalize on emerging opportunities and navigate the evolving financial landscape," Greg Friedman said.
About Peachtree Group
Peachtree Group is a vertically integrated investment management firm specializing in identifying and capitalizing on opportunities in dislocated markets, anchored by commercial real estate. Today, the company manages billions in capital across acquisitions, development and lending, augmented by services designed to protect, support and grow its investments. For more information, visit www.peachtreegroup.com.