Peachtree Group has launched a $250m (£185.2m) special situations fund designed to unlock value in mispriced hotel and other commercial real estate assets, amid capital market illiquidity.
The US commercial real estate investment manager said that the Peachtree Special Situations Fund is positioned to step in where traditional capital has pulled back.
It highlighted that nearly $1tn in commercial real estate loans are maturing this year, with hotels carrying some of the largest refinancing and capital expenditure burdens.
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“We believe the next 12 to 18 months offer some of the most compelling risk-adjusted opportunities we’ve seen since the global financial crisis,” said Greg Friedman, managing principal and chief executive of Peachtree. “As balance sheet stress and refinancing hurdles intensify in the hotel space and other commercial real estate sectors, Peachtree is uniquely positioned to deploy capital where it’s needed most, delivering attractive returns while providing real solutions for sponsors and lenders alike.”
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The special situations fund targets investments that sit between value-add and opportunistic. Core strategies include off-market acquisitions, preferred and hybrid equity solutions and distressed purchases from lenders.
The fund is targeting assets across the US, with significant deal flow expected in markets with strong demand fundamentals and recent pricing resets, including Texas, Florida and California.
Peachtree expects to hold its first close within the next 60 to 90 days and complete the final close within its targeted 18 months following the initial close.
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