Key Takeaways
- • Peachtree Group originated a $12.75 million, 12-month interest-only bridge loan for The Barn Hotel, a 70-room resort hotel within The Barn Resort in Gettysburg, Pa.
- • Peachtree anticipates originating an additional $31.2 million in permanent takeout financing, consisting of a $25 million USDA Business & Industry (B&I) loan and $6.2 million in C-PACE financing.
- • The bridge loan refinances existing property debt and funds the interim period while the borrower pursues USDA B&I and C-PACE closings, which remain subject to approvals and closing conditions.
- • The permanent financing is expected to fund the interior construction of 70 guestrooms across the third through fifth floors of the existing 130,000-square-foot building.
- • Peachtree positions the structure as an integrated private credit, government-backed lending and C-PACE strategy for hospitality development in rural markets.
Summary
The 12-month, interest-only bridge loan refinances existing indebtedness tied to the property and gives the borrower interim capital while it advances toward its anticipated permanent capital structure. The planned takeout consists of a $25 million USDA B&I loan and $6.2 million in C-PACE financing, both to be originated through Peachtree's lending platform and subject to applicable approvals and closing conditions. The permanent financing will repay the bridge loan and fund the interior construction of 70 guestrooms across the third through fifth floors of the existing 130,000-square-foot building.
Jared Schlosser, head of originations and C-PACE at Peachtree Group, said the transaction shows how the firm can combine multiple financing capabilities across the investment lifecycle. "Rather than treating these as separate transactions, we can structure a coordinated financing solution from the outset," Schlosser said.
USDA B&I financing, backed by the U.S. Department of Agriculture's loan guarantee program, is designed to help eligible businesses in rural communities finance real estate, business expansion and other qualifying investments through approved lenders. C-PACE provides long-term, fixed-rate, property-assessed capital for qualifying energy efficiency, water conservation and other eligible building improvements, with repayment terms of up to 35 years depending on state regulations. Zach Chandler, senior vice president of strategy and government lending at Peachtree Group, said USDA B&I financing, combined with C-PACE, can provide a long-term solution for hospitality and commercial real estate projects that may face limited conventional lending options in rural areas.
Peachtree describes itself as a firm focused on dislocated markets, anchored by commercial real estate, that manages billions of dollars in capital across acquisitions, development and lending.
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