Peachtree Group Originates $12 Million USDA Bridge Loan and $6 Million C-PACE Financing for Byways Hotel Portfolio

Transaction Highlights Peachtree’s Expanding USDA Lending Platform and Integrated Capital Stack Approach

ATLANTA--(BUSINESS WIRE)--Peachtree Group (“Peachtree”) announced today that it originated $12.0 million of bridge financing along with $6.0 million of Commercial Property Assessed Clean Energy (“C-PACE”) financing to support the acquisition and renovation of the 78-key Byways Hotel Portfolio, a collection of three historic hospitality assets located in Alpine and Fort Davis, Texas.

The financing plan uses Peachtree’s U.S. Department of Agriculture (“USDA”) Business & Industry (“B&I”) lending program, which provides long-term financing for the portfolio after renovations are complete. The C-PACE financing provides long-term, fixed-rate capital for energy-efficient and resiliency improvements, helping lower overall cost of capital and enhance project economics. Together, these capital sources reflect Peachtree’s continued expansion of its government-guaranteed lending platform and its ability to structure across the full capital stack.

The portfolio includes the 27-key Holland Hotel (to be expanded to 28 keys), the 30-key Hotel Limpia and the 21-key Maverick Inn.

“This transaction demonstrates how we are leveraging our USDA lending platform alongside C-PACE financing to deliver a comprehensive capital solution,” said Zach Chandler, senior vice president of strategy, government lending at Peachtree. “By integrating government-guaranteed lending into our broader credit strategy, we are able to support both the repositioning of these historic assets and their long-term financing needs.”

Peachtree’s USDA platform is focused on originating and structuring government-guaranteed loans that provide borrowers with access to attractive, long-term capital in markets where traditional lending has become more limited. The USDA B&I program supports business and real estate investments in rural communities, offering higher leverage, competitive rates and extended amortization periods that enhance project feasibility and improve capital efficiency.

The Byways portfolio is located in USDA-eligible markets, which include communities with populations under 50,000. The program allows for up to 80% loan-to-value and terms of up to 30 years. Upon completion, the hotels are expected to preserve approximately 30 full-time jobs and create an additional 25 positions, while property improvements are anticipated to enhance the local tax base.

“Our USDA lending platform lets us offer flexible, long-term financing in markets that traditional lenders often miss,” said Greg Friedman, managing principal and CEO of Peachtree. “By combining government-backed lending with our other credit options, we create capital solutions that fit both the borrower’s needs and the property’s strengths.”

Built between 1912 and 1928, the three hotels are an important part of West Texas’s culture and architecture. Hotel Limpia in Fort Davis is a full-service property spread across several historic buildings and offers on-site food and drinks. The Holland Hotel, a Recorded Texas Historic Landmark in downtown Alpine, will be renovated with a new restaurant layout and added amenities. The Maverick Inn is a classic motor lodge with updated rooms.

The surrounding Big Bend National Park region has experienced increased development activity driven by continued growth in tourism demand. In addition, the hotels are close to Sul Ross State University, McDonald Observatory and local healthcare facilities. Alpine is the region’s main center for business and education, while Fort Davis attracts heritage tourists and is part of the Greater Big Bend International Dark Sky Reserve.

This deal highlights Peachtree’s approach of using its integrated platform to arrange funding from multiple sources, including bridge, C-PACE and government-backed lending programs.

About Peachtree Group

Peachtree Group is a vertically integrated investment management firm specializing in identifying and capitalizing on opportunities in dislocated markets, anchored by commercial real estate. Today, the company manages billions in capital across acquisitions, development and lending, augmented by services designed to protect, support and grow its investments. For more information, visit www.peachtreegroup.com.