Peachtree Group Provides $35M Refi for SoCal Hotels

Southern California developer 4G Ventures has nabbed a $35 million loan to refinance two next-door hotels in Palm Desert, Calif., Commercial Observer has learned.

Peachtree Group originated the floating-rate bridge loan for 4G Ventures’ 151-key Courtyard by Marriott and 130-key Residence Inn hotels, located adjacent to each other near the corner of Frank Sinatra Drive and Cook Street in Palm Desert. The deal carries a two-year initial term with three 12-month extension options. 

Laguna Beach-based 4G acquired the hotel properties in 2016 for $36 million and is planning enhancements to both facilities this year. The hotels are separate but have some shared facilities, including a fitness center. 

Keegan Bisch, vice president of originations and credit at Peachtree, said Palm Desert was attractive from a lending perspective due to the hotels being near tourist attractions in nearby Palm Springs. The hotels are also poised to benefit from a new surf park in Palm Desert slated to open next year. 

“Palm Desert is a market we’ve looked at quite a bit recently, and it has grown a lot,” Bisch said. “This is really solid real estate, and the hotels are just in need of refresh and franchise renewal with a loan maturity coming up, so it’s a perfect deal for a bridge loan to get them through that period.”

Officials at 4G Ventures did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com