ATLANTA, Georgia—Peachtree Group announced the launch of its Peachtree Special Situations Fund, a $250 million fund designed to unlock value in mispriced, high-quality hotel and other commercial real estate assets due to today’s capital market illiquidity.
“We believe the next 12 to 18 months offer some of the most compelling risk-adjusted opportunities we’ve seen since the global financial crisis,” said Greg Friedman, managing principal and chief executive officer of Peachtree. “As balance sheet stress and refinancing hurdles intensify in the hotel space and other commercial real estate sectors, Peachtree is uniquely positioned to deploy capital where it’s needed most, delivering attractive returns while providing real solutions for sponsors and lenders alike.”
With nearly $1 trillion in commercial real estate loans maturing in 2025 and hotels carrying some of the largest refinancing and capital expenditure burdens, Peachtree’s Special Situations Fund is positioned to step in where traditional capital has pulled back. Peachtree’s strategy provides creative downside-protected capital solutions to reposition assets and unlock embedded value.
“This fund is about capitalizing on dislocation, not chaos,” Friedman said. “We’re targeting high-quality assets not distressed by systematic factors but by capital structure, and we’re doing it with the speed, creativity, and certainty of execution that have defined Peachtree’s reputation for more than a decade.”
The Special Situations Fund targets investments that sit between value-add and opportunistic, combining upside potential with meaningful downside protection. Core strategies include:
- Off-market acquisitions: Securing underperforming or mispriced hotels as well as select multifamily, student housing, self-storage, and other commercial real estate sectors for repositioning and stabilization.
- Preferred and hybrid equity solutions: Providing flexible capital to sponsors needing liquidity for acquisitions, development, or refinancing with structures designed to protect basis and enhance current yields.
- Distressed purchases from lenders: Acquiring assets directly from banks through deed-in-lieu or post-foreclosure transactions, often at discounts to outstanding loan balances and well below replacement cost.
Peachtree’s fully integrated platform spans direct lending, CPACE financing, development, acquisitions, and capital markets and provides a lens into shifting market dynamics.
“We’re the first call when a sponsor or lender needs a fast, reliable solution,” Friedman said. “Speed and surety of close are critical in this environment, especially when dealing with complex capital stacks and distressed notes.”
The fund’s geographic focus is nationwide, with significant deal flow expected in markets with strong demand fundamentals and recent pricing resets, including Texas, Florida, and California. Peachtree expects to hold its first close within the next 60 to 90 days and complete the final close within its targeted 18 months following the initial close.
