The company said the loan is an example of the value of private credit
Peachtree Group provided a $42 million floating-rate first mortgage loan to Banyan Street Capital for the acquisition and repositioning of Atlanta Financial Center in Buckhead, Georgia.
Vishnu Rageev R is a journalist with more than 15 years of experience in business journalism. Before joining Asian Media Group in 2022, he worked with BW Businessworld, IMAGES Group, exchange4media Group, DC Books, and Dhanam Publications in India. His coverage includes industry analysis, market trends and corporate developments, focusing on retail, real estate and hospitality. As a senior journalist with Asian Hospitality, he covers the U.S. hospitality industry. He is from Kerala, a state in South India.
Peachtree provided a $42 million floating-rate loan to Banyan Street Capital for the acquisition and repositioning of Atlanta Financial Center in Buckhead.
The deal delivers capital at a reset basis, with comps pricing 98 percent higher, reflecting strong collateral and execution.
It recently launched a $250 million fund to invest in hotel and commercial assets mispriced from market illiquidity.
PEACHTREE GROUP PROVIDED its first mortgage loan to Banyan Street Capital for the acquisition and repositioning of the 914,774-square-foot Atlanta Financial Center in Buckhead, Georgia. Peachtree said the office sector is at an inflection point, similar to the retail segment previously.
The $42 million floating-rate loan has a 36-month initial term and a 12-month extension option, with interest and completion guarantees from Banyan Street. The deal provides flexible capital for transitional assets at a reset basis, with comparable transactions pricing 98 percent above the loan basis, reflecting collateral strength and execution, Peachtree said in a statement.
“This transaction highlights how private credit continues to fuel opportunities across the commercial real estate landscape,” said Daniel Siegel, Peachtree’s president and principal of CRE. “In today’s volatile environment of elevated interest rates and persistent inflation, private credit remains a critical source of capital.”
Siegel said negative sentiment is preventing some from seeing opportunities.
“The market is bifurcated, with most vacancy tied to troubled assets, and when you adjust for those, the fundamentals tell a different story,” he said. “While sentiment will take time to shift, we’re ready to back smart business plans in this space.”
The private credit market continues to fill the gap left by traditional lenders, providing certainty for sponsors with defined strategies, the statement said.
Atlanta-based Peachtree is led by CEO and managing principal Greg Friedman, managing principal and CFO Jatin Desai and principal Mitul Patel.
“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.
Banyan plans to reposition AFC, starting with leasing the North Tower, using reserves for capital expenses, tenant improvements, and leasing. It will also explore larger tenants and redevelopment options.
While the broader office market faces headwinds, Buckhead remains a strong submarket, supported by financial firms, MARTA access, highway connectivity and retail and hospitality infrastructure, Peachtree said. Limited new supply, declining sublease inventory, and steady tenant demand position Buckhead and AFC for recovery and growth.
“Borrowers are seeking flexible capital that can adjust to changing market conditions, and that’s what we’re delivering,” said Jared Schlosser, head of originations and CPACE at Peachtree. “By providing execution certainty, we’re giving sponsors the runway to carry out their plans.”
Peachtree recently launched a $250 million fund to invest in hotel and commercial real estate assets mispriced due to capital market illiquidity.
U.S. hotel rooms under construction fell year over year for the ninth month, CoStar reported.
About 137,956 rooms were under construction in September, down 12.3 percent from 2024.
In September, 12,746 midscale and 4,559 economy rooms were under construction.
U.S. HOTEL ROOMS under construction fell year over year for the ninth consecutive month in September, reaching the lowest level in 40 quarters, according to CoStar. Still, more rooms are under construction now than after the Great Recession.
About 137,956 rooms were under construction in September, down 12.3 percent from the same month in 2024, CoStar reported. Final planning included 258,836 rooms, a 3.5 percent decline, while 327,304 rooms were in planning, a 2.6 percent decrease year over year.
“Construction fell to the lowest point of the past 40 quarters, more than 80,000 rooms below the peak from the third quarter of 2020,” said Isaac Collazo, STR’s senior director of analytics. “Uncertainty often leads to inaction and developers and financial institutions are still waiting for a more favorable environment. Higher building and material costs are also hampering groundbreakings and we don’t foresee the cycle turning for some time. However, more rooms are under construction now than after the Great Recession—development is down but still happening.”
In September, the luxury segment had 5,911 rooms under construction, up 3.8 percent year over year; upper upscale 15,292, up 2.1 percent; upscale 33,376, up 3.6 percent; upper midscale 39,075, up 3.3 percent; midscale 12,746, up 2.4 percent and economy 4,559, up 0.7 percent.
CoStar reported that U.S. hotel rooms under construction fell year over year for the sixth consecutive month in June.
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