Peachtree Group Recaps Silicon Valley Hotels With $103M Loan
By Andrew Coen March 14, 2024 5:15 pm
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T2 Hospitality has inked $102.9 million of bridge financing to recapitalize two dual-branded Marriott hotels in Silicon Valley, Calif.
Peachtree Group, formerly Stonehill, provided the loan, which will retire previous construction debt on the Newport Beach, Calif.-based hotel owner’s combined 350‐room AC Hotel Sunnyvale Moffett Park and the Tetra Hotel, Autograph Collection in Sunnyvale, Calif., that opened in spring 2022. Both hotel brands operate under the Marriott umbrella.
Jared Schlosser, Peachtree Group’s senior vice president, said the deal was attractive because of the connectivity of the two hotels near major office buildings that help drive business travel to the properties, coupled with there being little competition in the area.
The hotels are in the vicinity of business parks with office properties leased to Google, SpaceX, Walmart and Meta. The hotels are also four miles from Levi’s Stadium in Santa Clara, home of the National Football League’s San Francisco 49ers.
Schlosser noted that Silicon Valley was one of the slower areas to return to the office after the worst of the COVID-19 pandemic. He said the bridge loan will help both hotels as they ramp up for more demand as business travel returns to the area in full force.
“When we were there during the site visit Google had booked up pretty much that whole week and one side of their business was having their event at the hotel,” Schlosser said. “You’ve got a bunch of different demand drivers right in that immediate area.”
The deal marked the biggest bridge loan to date for Peachtree Group, which was founded in 2014 as Stonehill before changing its name in September 2023. The firm lends across all property sectors, but has historically focused heavily on hospitality assets.
Officials at T2 Hospitality did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
