Peachtree Group Opens New Office in Austin
Peachtree Group has expanded its national presence with the opening of its first office outside of its Atlanta headquarters in downtown Austin.
House Views for 2025: Insights from Peachtree Group Senior Leaders
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This year marks a watershed moment for commercial real estate stakeholders. The erratic nature of the market demands a deep understanding of financial tools and the willingness to embrace alternative approaches. Success hinges on adaptability, innovation and a thorough grasp of market dynamics. While the headwinds are expected to persist, this environment offers unique opportunities for those who are prepared.
Peachtree Group CEO Greg Friedman wrote about those challenges in this blog post: 2025 CRE Market Forecast: Adapting to Disruption.
Below, the Peachtree Group team shares their insights into how the market is evolving and their strategies for overcoming challenges and capitalizing on the opportunities in this transformative period for the commercial real estate industry.
“2025 could mark the end of the 'kicking the can' era in commercial real estate, as outside pressures - banks, brands and partnerships - force transactions that can no longer be delayed. We've already seen the shift begin in late 2024, with assets that stalled during prior marketing cycles resurfacing under note sales and distress-driven deals. As equity takes a backseat and control shifts to outside parties, prepared investors will find unique opportunities in this evolving landscape.”
Michael Bernath, SVP Acquisitions & Dispositions
"With debt maturities as the primary catalyst for capital events, the elevated interest rate environment and shifting property fundamentals are driving investors toward alternative strategies such as rescue capital, preferred equity and special situations. Borrower indecision and bank disagreements are fueling loan sales, while partnerships face stress from owner fatigue and capital calls, creating opportunities for M&A and large-scale equity trades. Against a backdrop of geopolitical risk, inflation and rising fixed costs, innovative and strategic approaches are essential for achieving growth."
Michael Ritz, EVP, Investments
“Banks, buoyed by strong reserves, are expected to sell commercial real estate loans as they manage risk exposure, address tighter regulatory requirements and free up capital. This trend will likely increase note transactions, offering investors access to discounted or even distressed assets. The market is also witnessing a significant rise in hybrid credit structures, blending debt and equity characteristics to provide flexible capital to borrowers while delivering attractive risk-adjusted returns to investors. The shifting environment in which traditional financing avenues are evolving presents opportunities for those equipped to navigate this chaotic market."
Jeremy Stoler, EVP, Debt Capital Markets
“In anticipation that public equities markets will generate lower annual returns over the next decade than in the decade prior, investors will increasingly seek alpha through alternative investments. Foreign capital partners in certain geographies and markets will continue to turn to U.S. commercial real estate to hedge against currency and geopolitical risks. Meanwhile, sponsor and LP fatigue will create a fertile environment for secondaries, special situations and structured finance deals, where fundamentally strong assets with challenged capital structures may be acquired or recapped at attractive valuations.”
Daniel Savage, VP Investments & Strategy, Equity Capital Markets
“The EB-5 program offers commercial real estate developers a distinctive advantage by providing lower-cost capital that enhances investment returns while creating jobs and driving economic growth. By including EB-5 financing into their capital stack, developers can better navigate stricter lending conditions and rising construction costs. This approach not only maximizes value but also positions the property for long-term success.”
Adam Greene, EVP, EB-5 Program
“Lenders holding post-COVID distressed loans, recognizing they won't recover cash flow, are preparing to liquidate in 2025, creating opportunities for strategic buyers. However, a 'higher-for-longer' interest rate environment continues to stall the transaction market, as sellers resist trading at elevated cap rates, prolonging the bid-ask gap."
Jared Schlosser, EVP, Hotel Lending & Head of CPACE
“The commercial real estate development landscape continues to evolve, and the fundamentals of the hospitality industry enable it to standout as a strong and flexible sector ready to take advantage of new opportunities. With generally higher cap rates, supply growth well under the long-run average and strong investor appetite in areas supported by the federally backed Opportunity Zone program, the hotel industry is well-positioned to lead new projects, especially in infill locations. This growth shows how development will move forward, even as other real estate sectors face tougher challenges and economic struggles.”
Will Woodworth, VP, Investments
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Peachtree Group has expanded its national presence with the opening of its first office outside of its Atlanta headquarters in downtown Austin. This move aligns with the company’s growth strategy and commitment to Texas’ commercial real estate market, according to the company.
With significant investments across the state, including ongoing developments in Dallas and San Antonio and an upcoming project in Austin, establishing an office in the state capital conforms with Peachtree’s long-term vision. Austin’s business environment and growth prospects make it an ideal location to strengthen the firm’s reach and partnerships, according to the company.
Peachtree’s connection to Austin runs deep. The firm has been recognized among the Longhorn 100, a distinction honoring the fastest-growing businesses led by the University of Texas alumni. Additionally, Greg Friedman, Peachtree’s managing principal/CEO, a University of Texas graduate, actively supports the institution by serving on the Real Estate Fund Advisory Board for the Texas McCombs School of Business.
“Our expansion into Austin marks an exciting milestone for Peachtree Group,” said Friedman. “Texas is a critical market for us, and establishing an office in the heart of downtown Austin will allow us to better support our growing portfolio and deepen our relationships in the region. With our ongoing projects across the state and our strong ties to the University of Texas community, this move reinforces our commitment to long-term investment and growth in Texas.”
The new office is in the 100 Congress building and will serve as a hub for Peachtree’s investment and development activities in the region.
Market Uncertainty and Investment Opportunities: Insights from Jim Costello
MSCI economist Jim Costello discusses CRE's transition from financial engineering to operational excellence on the latest Peachtree Point of View podcast.
This week we have a special extended Market Update on the Peachtree Point of View podcast. CEO Greg Friedman and SVP Daniel Savage welcomed Jim Costello, Chief Economist and Head of Real Estate Economics at MSCI Real Assets, for a candid discussion about the current commercial real estate landscape. As stakeholders navigate through a period of significant economic uncertainty and policy shifts, Costello offered valuable insights for investors seeking to understand where opportunities might emerge in this volatile environment.
The conversation highlighted how recent economic turmoil has dramatically shifted market expectations. After many investors had been playing the "stay alive until 2025" game, holding on through interest rate shocks in hopes of eventual stabilization, recent policy shifts and uncertainty have "pulled the rug out from under" many market participants.
Key Takeaways for Investors:
- The end of capital market tailwinds: For decades (1985-2020), falling interest rates provided commercial real estate investors with built-in advantages through cap rate compression. Costello warns this era is likely over, shifting the focus to operational expertise: "The number one thing is going to be managing your properties effectively moving forward."
- Credit over equity may be the play: In this transitional market, debt investments are currently out performing equity positions on a risk-adjusted basis. Costello notes this creates opportunities for established private credit providers with proper infrastructure and experience over "debt tourists" entering the space opportunistically.
- Focus on local fundamentals: Rather than making broad sector-based allocations, Costello suggests investing in markets with strong demographic trends and knowledge-economy foundations. "It's the local fundamentals that matter more. It's about being in a market that has healthy demographics or some other type of growth."
- Opportunity in uncertainty: Despite potential recession risks, Costello remains optimistic about opportunities, particularly in distressed debt and turn around/special situations: "There's always money to be made in a down market... There's always opportunities for folks who can come in and clean up problems."
- Corporate bond rates as early indicators: Investors should watch corporate bond rates as leading indicators for cap rate movements, with recent spreads widening by approximately 40-50 basis points, potentially foreshadowing similar increases in real estate cap rates.
This Market Update discussion sheds light on how investment strategies need to evolve in response to new economic reality. Commercial real estate is transitioning from an era of "financial engineering" to one focused on operational excellence and local market knowledge.
Want more insights to guide your investment decisions? Listen to the full episode of Peachtree Point of View podcast for Jim Costello's complete analysis on market trends, interest rate predictions and specific markets to watch. Follow Peachtree Point of View on your favorite podcast platform to stay informed about commercial real estate opportunities in this rapidly changing landscape.
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Peachtree Group CEO Recognized as 2025 Industry Leader in Commercial Real Estate Finance
Peachtree Group is proud to announce that Greg Friedman, managing principal and CEO, has been recognized among the 2025 Rainmakers in CRE Debt, Equity & Finance by GlobeSt., and named to Commercial Observer’s prestigious Power Finance list.
ATLANTA (May 5, 2025) - Peachtree Group (“Peachtree”) is proud to announce that Greg Friedman, managing principal and CEO, has been recognized among the 2025 Rainmakers in CRE Debt, Equity & Finance by GlobeSt.,and named to Commercial Observer’s prestigious Power Finance list. These industry-leading accolades highlight Friedman's exceptional leadership, strategic innovation and enduring impact on the commercial real estate finance landscape.
Inclusion on the GlobeSt. Rainmakers list acknowledges Friedman's ability to navigate one of the most challenging commercial real estate finance periods. Amid elevated interest rates, tightening capital markets and declining valuations, Friedman has led Peachtree's vertically integrated management platforms with clarity and conviction. His approach has helped stakeholders unlock value, access liquidity and capitalize on market dislocation.
Commercial Observer’s Power Finance list further affirms Friedman’s influence and adaptability. As lenders retracted and transaction volume slowed, Peachtree continued to deliver creative capital solutions from originating loans to establishing strategic partnerships and playing across the capital stack. Under Friedman’s leadership, Peachtree has remained a dependable partner known for its certainty of execution, critical expertise and a solutions-driven mindset.
“These recognitions are a testament to Greg’s vision and our entire team’s commitment to being a steady force in an unpredictable market,” said Jatin Desai, managing principal and CFO of Peachtree. “Our strategy has always centered on disciplined investing, innovation and building strong relationships. Greg has set the tone.”
Peachtree’s success is powered by a high-performing, deeply experienced team that brings together the full spectrum of credit, equity, development and asset management expertise. This collective strength allows the firm to respond decisively to market shifts, underwrite with conviction and deliver solutions others can’t.
Peachtree has executed over $12 billion in commercial real estate transactions since inception. Its integrated platform aligns real estate, credit and capital markets expertise, positioning the firm to identify opportunities, deploy capital efficiently and manage risk across cycles.