Peachtree Group Secures $40 Million in CPACE Financing for AC Hotel San Diego Downtown Gaslamp Quarter | Global News

Peachtree Group Originates $40 Million CPACE Loan for AC Hotel San Diego Downtown Gaslamp Quarter

Peachtree Group Provides $40 Million CPACE Loan to BLG SAN DIEGO, LLC for AC Hotel San Diego Downtown Gaslamp Quarter

In the midst of ongoing credit market dislocations, Peachtree Group has stepped in to provide a $40 million retroactive CPACE loan to BLG SAN DIEGO, LLC for its recently opened AC Hotel San Diego Downtown Gaslamp Quarter. This innovative financing structure will help alleviate immediate financial pressures and establish a solid cash flow foundation for the hotel during its initial years of operation.

The CPACE financing, which is amortized over 30 years with no payment for the first year followed by five years of interest-only payments, allowed BLG to pay down its senior loan with Preferred Bank and E.Sun Commercial Bank, Ltd. to under $20 million, reducing the banks’ exposure.

Greg Friedman, Peachtree Group’s managing principal and CEO, highlighted the importance of this capital structure in the current challenging lending market for hotel and commercial real estate owners. With trillions of dollars in debt coming due and refinancing becoming harder, CPACE financing has become a vital source of liquidity for property owners facing impending debt maturities and scarce refinancing opportunities.

The AC Hotel San Diego Downtown Gaslamp Quarter, located in downtown San Diego’s vibrant Gaslamp Quarter, has been performing well but facing strain on cash flows due to debt costs. Retroactive CPACE funding offers unique advantages for property owners, allowing them to use 100% of the loan proceeds to reimburse costs already incurred, improving loan terms and cash flow for completed projects.

Overall, this strategic approach not only ensures the hotel’s success but also positions it for long-term stability and growth. Peachtree Group, a key player in the CPACE financing market, has demonstrated its commitment to providing innovative and effective solutions for property owners in dislocated markets.

For more information on Peachtree Group and their investment management services, visit

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