Peachtree Refis Memphis Hyatt Hotel Property With $51M Loan

Carlisle Corp. has landed a $51 million loan to refinance two Hyatt-branded hotel properties in Memphis, Tenn., Commercial Observer has learned.

Peachtree Group supplied the three-year, floating rate loan for the developer’s 227-room Hyatt Centric and 136-key Caption by Hyatt. Carlisle opened Caption by Hyatt in 2022 and Hyatt Centric in 2021. 

Jared Schlosser, Peachtree Group senior vice president, noted that the property is aided by its Beale Street location steps from the attractions like FedEx Forum, home of the National Basketball Association‘s Memphis Grizzlies and the Renasant Convention Center. Schlosser said the hotels are attractive to both leisure and business travel customers. 

“It’s walkable to all the demand generators in Downtown Memphis,” Schlosser told CO. “The property is performing well with a few business groups solidified that will help them thrive so there were just a bunch of variables that made this refinance attractive for us.”

Schlosser added that Carlisle, as a local sponsor with its headquarters adjacent to the hotel, also made the deal attractive from a lending perspective. Carlisle has executed more than $265 million of development projects across the Memphis region, according to the company’s website. 

“They are very committed to Memphis,” said Schlosser of Carlisle. “Over the last couple years we have really leaned into doing refinances for sponsors that have real committed equity, are local and have a vision of where the asset is going as opposed to challenging syndicated deals,” Schlosser said. 

BWE arranged the transaction with a Nashville-based team that consisted of Brittney Rowe, Nick Harb, Graham Gilreath and Stephen Brink.

Rowe, senior vice president at BWE, said in a statement that underwriting for the deal was “a competitive process” with Peachtree offering “the most competitive terms and structure that aligned with the client’s business plan for the properties.”

Officials at Carlisle did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.