Peachtree Group Lends $68M on Nashville Hotel Recap 

Sun Development & Management Corporation has inked $67.5 million of bridge financing for the recapitalization of a newly-opened Hilton-branded hotel in Nashville, Commercial Observer has learned.

Peachtree Group originated the three-year loan with two one-year extension options for the developer’s 187-room Printing House – Tapestry Collection by Hilton property that debuted this spring. 

The loan will pay off past construction debt for the hotel, which encountered challenges getting off the ground due to permitting delays and the COVID-19 pandemic after Sun Development’s acquisition of the former print factory property in 2017.

Jared Schlosser, Peachtree Group’s senior vice president, said the deal was attractive on multiple fronts driven largely by the strong track record of Sun Development run by hoteler Suraj Patel, who has also operated the 117-key Homewood Suites hotel in Nashville. 

“He knows what he’s doing and he’s had a lot of success in this market before,” Schlosser said of Patel. “This deal has the right operator, a great basis for us, someone who we’ve been wanting to do business with for a while and a market that we’re clearly bullish on.”

Schlosser noted that the hotel is well positioned to thrive, given its location in Nashville’s SoBro District within walking distance of tourist attractions like the Country Music Hall of Fame and several corporate office buildings that could attract business travelers.  

The Indianapolis-based developer acquired the 0.56-acre site for $4 million for the Tapestry Collection project, the Tennessean reported at the time. Sun currently operates 31 hospitality properties with more than 3,600 keys in 10 states and has owned more than 60 hotels during the past 25 years, according to Peachtree Group. 

Officials at Sun Development did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com