Peachtree Group Lends $34M in Silicon Valley Hotel Recap 

Shashi Group has sealed $34 million of bridge financing for the recapitalization of a Marriott-branded Silicon Valley hotel asset near two Apple campuses, Commercial Observer can first report. 

Peachtree Group originated the three-year loan with two 12-month extension options for the developer’s 123-key Aloft Cupertino hotel in Cupertino, Calif. Loan proceeds will fund an “extensive” renovation of the 2013-built property situated two blocks from Apple’s Infinite Loop campus.

Infinite Loop was Apple’s headquarters until 2017 before the company relocated the HQ to Apple Park, about two miles from the hotel site. 

Keegan Bisch, vice president of originations and credit at Peachtree, said the hotel historically performed well before the COVID-19 pandemic and has recovered in recent years as business travel to the region has rebounded. A previous $30.4 million commercial mortgage-backed securities (CMBS) loan on the property entered special servicing in August 2024 after missing a maturity payment, The Real Deal reported at the time.  

“Apple business travel has come back strong and [the hotel sees] business from other large tech firms as well out there who take a number of room nights,”  Bosch told CO. “It  had a CMBS maturity coming up and just needed some more runway as the market continued to come back.”

Bosch noted that the basis of $27,000 per key was well below the average investment basis of comparable deals that have traded around $44,000 per key. He said the hotel’s renovation project currently underway will involve refreshing all rooms and common areas. 

The Aloft Cupertino, which comprised 16.8 percent of the collateral in the COMM 2014-LC17 deal, saw its appraisal reduced 18 percent from issuance, from $48.6 million to $39.7 million in 2014, according to an October 2024 Morningstar report. The hotel previously had a corporate contract with Apple before the tech giant’s headquarters was moved slightly farther away, according to Morningstar. 

Officials at Shashi Group did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com