Peachtree Group Originates $42 Million Loan for Acquisition and Repositioning of Atlanta Financial Center

ATLANTA--(BUSINESS WIRE)--Peachtree Group ("Peachtree) originated a $42 million first mortgage loan to finance Banyan Street Capital's ("Banyan") acquisition and repositioning of the Atlanta Financial Center ("AFC"), a 914,774-square-foot Class A office campus in Buckhead, Atlanta.

“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.”

Much like during the height of the debt crisis, when private credit lenders stepped in to maintain liquidity and helped stave off a broader recession, today’s private credit market continues to step up to fill the void left by traditional lenders and provide certainty for sponsors pursuing thoughtful business strategies.

“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 said.

Initially acquired in 2016 by a Sumitomo Corporation affiliate for $222.5 million, AFC faced tenant departures, softening fundamentals and shifting capital priorities. The property is situated atop GA-400, offering daily visibility to approximately 420,000 commuters, and comprises three interconnected towers spanning 13.05 acres, with structured parking for 2,335 vehicles.

Banyan plans to reposition AFC, starting with the lease-up of the North Tower, supported by capital expenditure reserves and funds for tenant improvements and leasing. The sponsor will also explore larger tenant opportunities and future redevelopment options.

“This transaction reflects a careful approach to how we de-risk, by structuring a basis reset in a top submarket with an experienced sponsor and a clear repositioning plan," Siegel said.

While the broader office market faces headwinds, Buckhead remains one of Atlanta's strongest submarkets, supported by its base of financial firms, direct MARTA access, and highway connectivity, as well as high-end retail and hospitality amenities. Limited new supply, declining sublease inventory and stable tenant demand position Buckhead and AFC for recovery and growth.

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 Peachtree's ability to deliver flexible capital solutions for transitional assets in premier locations at a meaningful basis reset. Comparable transactions in the market reflect a 98 percent premium to Peachtree's loan basis, underscoring the strength of the collateral and business plan.

"Borrowers are seeking flexible capital solutions that can adapt to shifting market conditions, and that's exactly what we're delivering," said Jared Schlosser, head of originations and CPACE at Peachtree. "By offering certainty of execution, we're giving sponsors the runway they need to execute thoughtful business plans."

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.