Dealmaker: Peachtree Group Originates $42M for Acquisition, Repositioning of Atlanta Financial Center

(Image courtesy of Peachtree Group)

Peachtree Group, Atlanta, originated a $42 million first mortgage loan to finance Banyan Street Capital’s acquisition and repositioning of the Atlanta Financial Center.

The complex, located in the Buckhead neighborhood, features 914,724 square feet of Class A Office space.

Banyan plans to reposition the property beginning with the lease-up of the North Tower, supported by capital expenditure reserves and funds for improvements and leasing.

The floating-rate loan carries a 36-month initial term with a 12-month extension option and is backed by completion, interest and carry guarantees from Banyan.

“This transaction highlights how private credit continues to fuel opportunities across the commercial real estate landscape,” said Daniel Siegel, president and principal CRE of Peachtree. “In today’s volatile environment of elevated interest rates and persistent inflation, private credit remains a critical source of capital.”

“We believe the office sector is at an inflection point, much like retail when we were financing mall acquisitions. Negative sentiment is masking real opportunities. The market is bifurcated, with most vacancy tied to a number of troubled assets, and when you adjust for those, the fundamentals tell a different story. While sentiment will take time to shift, we’re ready to back smart business plans in this space,” Siegel continued.