Peachtree Group, an Atlanta-headquartered commercial real estate investment platform, has launched the Peachtree Special Situations Fund, a $250 million initiative that will target hotel and other commercial real estate assets facing what the company calls “market dislocation.”
According to the company, the fund will focus on “investments that sit between value-add and opportunistic. Its core strategies will include off-market acquisitions of 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; and distressed purchases from lenders often at discounts to outstanding loan balances and well below replacement cost.
The company added that many hotel and commercial real estate owners who financed properties in the zero-interest-rate era are now facing gaps in their capital stacks as rates remain elevated and liquidity tightens. As a result, the fund is design to offer downside-protected capital solutions to reposition assets and unlock embedded value.
“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 CEO 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. This fund is about capitalizing on dislocation, not chaos. 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.”
