2023 was a year marred by obstacles for borrowing across commercial real estate, particularly after a widespread crisis shook regional banks that are historically the biggest lenders in the space. Peachtree CEO Greg Friedman spoke with Hotel News Now about his prediction for 2024.
Insights Into the Lending Environment From Peachtree's Greg Friedman (costar.com)
Commercial Observer | Pacifica Hotels has secured $126.1MM to refinance a portfolio of seven southern California hotels that hold a combined 601 rooms across San Diego, Pismo Beach, Venice, and Manhattan Beach.
Peachtree Group (along with Goldman Sachs) provided a three-year loan secured by the Belamar Hotel Manhattan Beach, which is part of the Hilton brand in Manhattan Beach, Calfornia.
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 | 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.
