Bloomberg TV: Impact of Fed Rate Cuts on CRE
Greg Friedman, CEO of Peachtree Group, discussed the potential impact of the Fed's expected 25 basis point rate cut on commercial real estate.
Commercial Observer - Kirkland Development has sealed $53.3 million of Commercial Property Assessed Clean Energy (C-PACE) financing to execute energy-efficient and resiliency enhancements to a planned residential community in southwest Washington just north of Portland, Ore., Commercial Observer has learned.
Peachtree Group closed the 30-year CPACE loan for Kirkland’s The Ledges at Palisades development in Camas, Wash. The Ledges consists of 51 condominiums and 90 rental apartments slated for completion in late 2025. Loan proceeds will fund sustainability upgrades, qualifying soft costs and improvements to the five-story property’s resiliency, HVAC system, lighting and plumbing.
Jared Schlosser, Peachtree Group’s senior vice president, said the loan will help complete the long-planned project that stalled during the COVID-19 pandemic, adding that it underscores how C-PACE can be utilized for bringing projects across the finish line.
“PACE is a great tool to come in particularly mid-construction because here there were some cost overruns and some delays due to COVID and other things, so this really helped jump-start the project,” Schlosser said. “We funded some of the previously completed line items as well as some of the future funding that needs to happen to finish the project.”
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Bloomberg TV - Greg Friedman, CEO of Peachtree Group, discussed the potential impact of the Fed's expected 25 basis point rate cut on commercial real estate. He noted that the 10-year treasury rate, currently at 4%, is already high, impacting commercial real estate values. Friedman expects the terminal rate to be around 2.75%, supporting the 10-year rate. He highlighted the stress from maturing loans, with $1 trillion due in the next year, and the opportunity for investors. Friedman also mentioned the thin risk premium spreads in commercial real estate, with multifamily assets trading at 5% cap rates. He emphasized the importance of credit investments over equity due to better risk-adjusted returns and the continued relevance of clean energy financing in commercial real estate.
Commercial Observer: Peachtree Refis Memphis Hyatt Hotel Property With $51MM Loan
Featured in Commercial Observer - Peachtree Group supplied the three-year, floating rate loan for the developer’s 227-room Hyatt Centric and 136-key Caption by Hyatt.
Commercial Observer | Carlisle Corp. has landed a $51 million loan to refinance two Hyatt-branded hotel properties in Memphis, Tennessee.
Peachtree Group supplied the three-year, floating rate loan for the developer’s 227-room Hyatt Centric and 136-key Caption by Hyatt. Carlisle opened Caption by Hyatt in 2022 and Hyatt Centric in 2021.
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Commercial Observer: Peachtree Lends $33MM for North Florida Hotel Recap
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Commercial Observer | Peachtree Group Originated the three-year, fixed-rate $33MM Bridge Loan for the hotel development company's 105-room Courtyard by Marriott Amelia Island and 134-key SpringHill Suites Amelia Island Property in Fernandina Beach, FL