- Peachtree originated $56.4 million in C-PACE financing.
- The deal reflects C-PACE's growing role in urban redevelopment.
- The financing is for The CTR, formerly CNN Center.
PEACHTREE GROUP ORIGINATED $56.4 million in C-PACE financing for the recapitalization and redevelopment of The CTR, formerly the CNN Center, in downtown Atlanta. The financing supports the transformation of the approximately 1 million-square-foot mixed-use property.
The project includes the retail atrium, digital displays, building system upgrades and office space for future tenants, Peachtree said in a statement. C-PACE financing will fund eligible improvements, including HVAC, glazing, lighting, plumbing, LED media displays and related costs.
"This financing demonstrates how C-PACE has evolved into a powerful capital solution for large-scale redevelopment projects that are remaking cities and repositioning landmark assets for the future," said Jared Schlosser, Peachtree's head of originations and C-PACE. "The CTR is not only one of Atlanta's most recognizable properties, but also one of the most important redevelopment opportunities in the Southeast. We are proud to provide financing that supports the property's next chapter and contributes to the continued revitalization of downtown Atlanta."
The CTR, located in Atlanta's Sports and Entertainment District, is being redeveloped by CP Group, Peachtree said. The property is connected to State Farm Arena, MARTA and the Omni Hotel. It is near Mercedes-Benz Stadium, Centennial Olympic Park, the Georgia World Congress Center, Georgia Aquarium and Centennial Yards.
Greg Friedman, Peachtree's CEO and managing principal, said today's commercial real estate market needs solutions, not more opinions.
"Higher-for-longer interest rates, tighter liquidity and a wave of upcoming debt maturities have fundamentally changed the market," he said. "Success today requires more than capital. It requires experience across origination, underwriting, servicing and asset management. That's where Peachtree's integrated platform is built to deliver solutions for borrowers, investors and partners."
Atlanta-based Peachtree is led by Friedman, Principal and CFO Jatin Desai and Principal Mitul Patel.
C-PACE gains traction
The transaction highlights the growing use of C-PACE financing in urban redevelopment, Peachtree said. Originally created to fund energy-efficient building improvements, C-PACE has become a financing tool for property owners seeking long-term, fixed-rate capital while reducing the need for equity and other higher-cost financing.
Schlosser said redevelopments of this scale require creative capital solutions.
"C-PACE is proving to be an effective tool for helping sponsors modernize properties, bridge capital gaps and position assets for long-term success," he said.
The financing is another Atlanta-area investment for Peachtree, reflecting the firm's commitment to redeveloping commercial real estate assets in the region.
"Atlanta continues to attract investment, population growth and corporate expansion, creating opportunities to reimagine many of the city's most important properties," Schlosser said. "Peachtree is proud to play a role in shaping the future of Atlanta through transformative projects that enhance the city's competitiveness, strengthen downtown and support long-term economic growth."
Separately, Peachtree is making its alternative investment products available on Goldman Sachs Group Inc.'s Goldman Sachs Custody Solutions platform.
