ATLANTA, Georgia—Peachtree Group announced 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 hospitality assets in Alpine and Fort Davis, Texas.
The financing plan uses Peachtree’s U.S. Department of Agriculture Business & Industry 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 the 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.
Transaction Details
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.”
The Byways portfolio is located in USDA-eligible markets, which include communities with populations under 50,000. The program allows for up to 80 percent 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 chief executive officer 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.”
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.
