Atlanta Business Chronicle | Atlanta Based Peachtree Group provided at $42MM loan to finance Banyan Street Capital’s acquisition of Atlanta Financial Center, the high profile office complex in the heart of Buckhead. The lender announced that it originated a floating rate first mortgage loan with a three-year initial term and 1 year extension option.
Press Release
ATLANTA (July 23, 2025) -Peachtree Group ("Peachtree) originated a $42 million first mortgage loan to finance Banyan Street Capital's ("Banyan") acquisition and repositioning of the Atlanta Financial Center ("AFC"), a914,774-square-foot Class A office campus in Buckhead, Atlanta.
“This transaction highlights how private credit continues to fuel opportunities across the commercial real estate landscape,” said Daniel Siegel, president and principal CRE of Peachtree. “In today’s volatile environment of elevated interest rates and persistent inflation, private credit remains a critical source of capital.”
Much like during the height of the debt crisis, when private credit lenders stepped in to maintain liquidity and helped stave off a broader recession, today’s private credit market continues to step up to fill the void left by traditional lenders and provide certainty for sponsors pursuing thoughtful business strategies.
“We believe the office sector is at an inflection point, much like retail when we were financing mall acquisitions. Negative sentiment is masking real opportunities. The market is bifurcated, with most vacancy tied to a number of troubled assets, and when you adjust for those, the fundamentals tell a different story. While sentiment will take time to shift, we’re ready to back smart business plans in this space,” Siegel said.
Initially acquired in 2016 by a Sumitomo Corporation affiliate for $222.5 million, AFC faced tenant departures, softening fundamentals and shifting capital priorities. The property is situated atopGA-400, offering daily visibility to approximately 420,000 commuters, and comprises three interconnected towers spanning 13.05 acres, with structured parking for 2,335 vehicles.
Banyan plans to reposition AFC, starting with the lease-up of the North Tower, supported by capital expenditure reserves and funds for tenant improvements and leasing. The sponsor will also explore larger tenant opportunities and future redevelopment options.
“This transaction reflects a careful approach to how we de-risk, by structuring a basis reset in a top submarket with an experienced sponsor and a clear repositioning plan," Siegel said.
While the broader office market faces headwinds, Buckhead remains one of Atlanta's strongest submarkets, supported by its base of financial firms, direct MARTA access, and highway connectivity, as well as high-end retail and hospitality amenities. Limited new supply, declining sublease inventory and stable tenant demand position Buckhead and AFC for recovery and growth.
The floating-rate loan carries a 36-month initial term with a 12-month extension option and is backed by completion, interest and carry guarantees from Banyan.
This transaction highlights Peachtree's ability to deliver flexible capital solutions for transitional assets in premier locations at a meaningful basis reset. Comparable transactions in the market reflect a 98percent premium to Peachtree's loan basis, underscoring the strength of the collateral and business plan.
"Borrowers are seeking flexible capital solutions that can adapt to shifting market conditions, and that's exactly what we're delivering," said Jared Schlosser, head of originations and CPACE at Peachtree. "By offering certainty of execution, we're giving sponsors the runway they need to execute thoughtful business plans."
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.
Contact:
Charles Talbert
678-823-7683ctalbert@peachtreegroup.com
Article Originally Featured in HotelBusiness.com
Private credit lenders have increasingly stepped into the void left by traditional banks, but not all are built the same, especially when it comes to hospitality. For sponsors like ARK Holdings, a seasoned hotel operator with a Florida-focused portfolio, finding a capital partner who understands the nuances of hotel operations and the complexities of today's capital markets is critical.
Peachtree Group recently demonstrated its ability to structure flexible, sponsor-aligned financing solutions through two bridge loans in Tallahassee, Florida: a $17.4 million floating-rate bridge loan for the 122-room Hampton Inn & Suites and a $12.75 million fixed-rate bridge loan for the 99-room Hilton Garden Inn. ARK Holdings owns both properties and these transactions are a case study of how Peachtree's multiple capital buckets allow customized structuring based on business plans, market conditions and sponsor objectives.
For the Hampton Inn & Suites, Peachtree provided a three-year floating-rate loan with two 12-month extension options, an ideal fit for a property that recently completed a multi-million-dollar PIP in September 2024. The Sponsor will use the term to stabilize performance, with plans to refinance into permanent financing. The floating structure offers flexibility to benefit from market rate movement and aligns with the short-term nature of the repositioning strategy.
In contrast, the Hilton Garden Inn received a five-year fixed-rate loan, a structure designed to support longer-term asset management and cash flow certainty following its more substantial renovation completed in August 2024. With both assets operating under the same Sponsor and adjacent to each other, ARK Holdings will benefit from cost savings through shared management and operations, enhancing overall performance.
Both loans reflect Peachtree's conviction in the Tallahassee market, which is poised to benefit from renewed government-related travel and corporate demand. Market ADR is expected to grow in line with inflation, and both hotels are projected to outperform their comp sets, a testament to the Sponsor's operational strength and capital investment.
More importantly, these deals reflect a deeper truth about hospitality-focused private credit: experience matters. Peachtree's deep roots in hotel ownership and operations allow it to underwrite beyond the spreadsheet, taking into account brand standards, PIP timelines and market seasonality. This understanding results in greater alignment with sponsors and better execution throughout the loan lifecycle.
At a time when capital markets remain selective, it is invaluable to have a lender who not only provides capital but also understands how hotels actually run. For sponsors navigating renovation-heavy business plans or managing complex portfolios, working with a lender like Peachtree Group, who brings operational know-how and flexible capital, is a strategic advantage. In a market where one-size-fits-all financing no longer works, Peachtree's approach proves that tailoring capital to the business plan is not just smart; it's essential.
Peachtree Group is a direct balance sheet lender focused on funding first mortgage bridge loans, mezzanine loans, preferred equity investments, and commercial property assessed clean energy (CPACE) financing. Jared Schlosser is responsible for Peachtree's hotel originations platform and its CPACE program.
Securing financing in today's capital markets is one of hotel owners and developers' greatest hurdles. Post-pandemic optimism has collided with a far more complex economic landscape defined by stubbornly high interest rates, cautious lenders and evolving risk appetites. While banks and CMBS lenders once anchored most hotel capital stacks, private credit has stepped into a central role, becoming not only an alternative but often the primary solution in today's environment.
Commercial Observer - Sun Development & Management Corporation has inked $67.5 million of bridge financing for the recapitalization of a newly-opened Hilton-branded hotel in Nashville, Commercial Observer has learned.
Peachtree Group originated the three-year loan with two one-year extension options for the developer’s 187-room Printing House – Tapestry Collection by Hilton property that debuted this spring.