Stonehill Commercial Real Estate Group sees strong loan market

0

Enter Wall Street with StreetInsider Premium. Claim your one week free trial here.


Plans to generate $300 million in funding in 2022

ATLANTA–(BUSINESS WIRE)–Stonehill’s commercial real estate group, Stonehill CRE, has deployed approximately $200 million of capital through the origination and purchase of first mortgages since its launch in the second quarter of 2022. The company expects its commercial real estate group to deploy an additional $100 million in loan originations and other transactions by the end of the year based on ongoing transactions. Stonehill CRE is targeting more than $500 million in transactions for 2023.

Stonehill, a subsidiary of Peachtree Group, has historically been one of the most active hotel commercial real estate lenders in the United States, ranking tenth among US hotel lenders by the Mortgage Bankers Association in 2021. In May, Stonehill expanded its commercial lending business to include all areas of real estate through the formation of Stonehill CRE, with Daniel Siegel as chairman.

Continued market volatility has seen traditional lenders and the syndicated market withdraw from all forms of home lending, causing major dislocation in capital markets. Stonehill CRE offers loans enabling property owners to execute their business plans.

“The formation of Stonehill CRE came at a fortuitous time as market conditions created a dislocated lending environment for commercial real estate,” Siegel said. “Traditional lenders have not only slowed commercial real estate lending, but also tightened underwriting standards, allowing us to provide the liquidity needed for maturing loans, new acquisitions and construction projects.”

Stonehill CRE transactions that have been closed include:

  • Mixed Use Development – Opus Atlanta in Atlanta, Georgia

  • Malls of New Jersey and Kentucky

  • Land loans in buoyant markets in the South-East

  • Repurchase of a non-performing office loan in Washington DC

“Opus Atlanta is a great example of how Stonehill can initiate and close a complex mixed-use development site transaction that traditional lenders would not typically consider executing,” said Siegel. “With our downside protected by one of the best remaining locations in a coveted Midtown Atlanta submarket, we were able to provide a degree of certainty to the borrower that we could complete this transaction on schedule.”

Stonehill CRE is also finalizing transactions on multi-family development, office, build-to-let projects and an additional retail project.

“All of our commercial real estate creations and transactions are consistent with our investment philosophy of deploying capital in a disciplined manner while providing ownership groups with thoughtful capital solutions and certainty of execution,” said Siegel.

About Stone Hill

Stonehill, a direct lender, actively provides revolving loans, bridge loans, mezzanine loans and preferred equity investments secured primarily by hotel assets. Founded in 2013, Stonehill provides creative financing solutions for acquisitions, recapitalizations, refinances and renovations and has completed over 400 transactions totaling over $4.5 billion. Stonehill executives have partnered to originate, structure or purchase over $10.0 billion in debt. For more information, please visit www.stonehillsc.com.

About the Peachtree Group

Peachtree is a private equity, asset and fund management investment firm focused on the opportunistic deployment of capital across its distinct operating and real estate divisions, including hospitality, commercial real estate lending, residential development, capital markets and media. Since its founding in 2008, the firm has made hundreds of real estate investments valued at over $7.8 billion in total market capitalization and currently has over $2.0 billion in equity under management. For more information, visit www.peachtreegroup.com.

Charles Talbert

678-823-7683

[email protected]

Source: Stone Hill

Share.

Comments are closed.