- Peachtree closed $150M loan for four Florida hotels.
- It’s the largest senior bridge loan in the firm’s history.
- Hotels are near Walt Disney World.
PEACHTREE GROUP ORIGINATED a $150 million bridge loan to refinance four hotels with 997 keys in Flamingo Crossings Town Center in Winter Garden, Florida. The financing is the largest senior bridge loan in the firm’s history.
The hotels, developed in 2020 and 2021 and adjacent to Walt Disney World Resort, maintain a weighted average occupancy of nearly 89 percent, Peachtree said in a statement. The loan replaces existing debt on the portfolio owned by repeat borrower Doradus Partners.
JLL’s Hotels & Hospitality Group arranged the transaction, which Peachtree closed in fewer than 45 days.
“This transaction reflects exactly where we believe the market is today,” said Jared Schlosser, Peachtree’s head of originations and CPACE. “Assets with experienced sponsorship continue to attract lender interest, but execution remains the differentiator. We were able to move quickly, provide certainty and deliver a financing solution that met the borrower’s objectives.”
The portfolio includes the 223-key Residence Inn Orlando at Flamingo Crossings Town Center, the 273-key Fairfield Inn & Suites Orlando at Flamingo Crossings Town Center, the 272-key Home2 Suites by Hilton Orlando at Flamingo Crossings Town Center and the 229-key Homewood Suites at Flamingo Crossings Town Center.
Investment rationale
The hotels are located within Flamingo Crossings Town Center, a mixed-use district with hotels, restaurants, retail and entertainment, Peachtree said. The portfolio is adjacent to Flamingo Crossings Village, a 120-acre residential community with more than 2,500 apartments housing Disney cast members and Disney College Program participants.
Schlosser said the portfolio met criteria from both a real estate and operating perspective.
“These are high-quality, institutional assets with strong cash flow, modern construction and two of the industry’s strongest global reservation systems through Marriott and Hilton,” he said. “That combination gave us confidence in the long-term performance of the portfolio.”
Each property holds the Walt Disney World Gateway Hotel designation, providing guests access to Disney vacation planning services, park transportation and marketing opportunities, Peachtree said. The hotels benefit from demand generated by Walt Disney World Resort.
“This marks our fourth transaction with Doradus Partners, and we believe that speaks to the strength of our platform and the importance of relationships in today’s lending environment,” said Greg Friedman, Peachtree managing principal and CEO. “When experienced sponsors have a choice, they return to partners that can execute with certainty and move quickly. That’s something we’ve worked hard to build, and we’re proud to earn that trust.”
The transaction also reflects the growing role of private credit providers in commercial real estate lending as they finance larger transactions historically funded by banks, the statement said.
Atlanta-based Peachtree is led by Friedman, Principal and CFO Jatin Desai, and Principal Mitul Patel. The firm’s capabilities include credit, equity, development, asset management and property management.
Peachtree recently completed its first investment through Peachtree Special Situations Fund I LP. The financing supports the acquisition and repositioning of the 203-key DoubleTree Suites Detroit Downtown Fort Shelby in Detroit, MI, which will be renovated and converted to an Embassy Suites by Hilton.
