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 plans to originate an additional $31.2 million in takeout financing, comprising a $25 million USDA Business & Industry (B&I) loan and $6.2 million in Commercial Property Assessed Clean Energy (C-PACE) financing, both subject to approvals and closing conditions.
- • The bridge loan refinances existing property debt and funds the completion of 70 guestrooms across the third through fifth floors of the existing 130,000-square-foot building.
- • The structure illustrates Peachtree's push to combine private credit, government-guaranteed lending and C-PACE within a single coordinated capital solution for hospitality development.
Summary
Peachtree Group, a vertically integrated investment and asset management firm, announced it has originated a $12.75 million bridge loan for The Barn Hotel, a 70-room resort hotel within The Barn Resort in Gettysburg, Pennsylvania, according to a Business Wire release. The 12-month, interest-only loan refinances existing indebtedness associated with the property and gives the borrower interim capital while it advances toward its permanent capital structure.
The bridge financing is the first stage of a broader strategy. Peachtree expects to originate an additional $31.2 million to refinance the bridge loan and fund the hotel's completion. 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 also fund interior construction of 70 guestrooms across the third through fifth floors of the existing 130,000-square-foot building.
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 access longer-term financing for real estate, business expansion and other qualifying investments through approved lenders. C-PACE provides long-term, fixed-rate, property-assessed capital for energy efficiency, water conservation and other eligible building improvements, with repayment terms of up to 35 years depending on state regulations.
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, adding that the company can structure a coordinated solution from the outset rather than treating the components as separate transactions. Zach Chandler, senior vice president of strategy and government lending at Peachtree, described USDA B&I financing as an important but often overlooked source of capital for commercial real estate in eligible rural communities, particularly when combined with C-PACE for hospitality developments that may face limited conventional lending options.
The bridge financing is the first stage of a broader strategy. Peachtree expects to originate an additional $31.2 million to refinance the bridge loan and fund the hotel's completion. 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 also fund interior construction of 70 guestrooms across the third through fifth floors of the existing 130,000-square-foot building.
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 access longer-term financing for real estate, business expansion and other qualifying investments through approved lenders. C-PACE provides long-term, fixed-rate, property-assessed capital for energy efficiency, water conservation and other eligible building improvements, with repayment terms of up to 35 years depending on state regulations.
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, adding that the company can structure a coordinated solution from the outset rather than treating the components as separate transactions. Zach Chandler, senior vice president of strategy and government lending at Peachtree, described USDA B&I financing as an important but often overlooked source of capital for commercial real estate in eligible rural communities, particularly when combined with C-PACE for hospitality developments that may face limited conventional lending options.
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