Peachtree Group Provides $42M Refi on Atlanta Resi-to-Hotel Conversion
By Andrew Coen August 20, 2024 4:02 pm
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Portman Holdings has sealed a $41.9 million loan to refinance an Atlanta hotel that was once a condominium property, Commercial Observer has learned.
Peachtree Group supplied the loan on Portman’s 217-room Kimpton Sylvan Hotel in Atlanta’s Buckhead neighborhood. The loan, which has a 36-month term with two 12-month extension options, will retire acquisition loan provided by Fifth Third Bank to acquire each condo unit in 2018 and convert the property to a hotel in 2021
JLL (JLL)’s C.J. Kelly arranged the transaction.
Jared Schlosser, Peachtree Group’s senior vice president, said the loan is timely since Portman had a looming maturity on the previous debt with the hotel now in a much stronger place than when it opened in early 2021, a year into the COVID-19 pandemic. He noted that in addition to business travel picking up in Atlanta, the Buckhead area is also seeing an uptick in new developments that will benefit the hotel.
“You have really strong sponsorship here and one of the household names in Atlanta in Portman and I think they’ve got the right team in place now to really take this thing to the next level,” Schlosser said. “They’ve got a restaurant on the bottom floor and rooftop bar on top to activate and there is a lot of development that’s going on around them— which the restaurant should benefit over the next couple years as those projects come online.”
Located at 374 East Paces Ferry Road Northeast adjacent to Shops at Buckhead Village, the hotel has amenities that include a pool, fitness center and meeting space. The property was originally built as apartments in the early 1950s before later getting converted into 100 condo units.
Officials at Portman Holdings did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
