Peachtree Supplies $30M Refi for Hotels Near University of Michigan

Arbor Lodging has scored $30 million of bridge debt to refinance two adjacent hotels two miles from the University of Michigan, Commercial Observer can first report.

Peachtree Group originated the loan for the sponsorship’s 97-room TownePlace Suites by Marriott Ann Arbor and the 130-key Hilton Garden Inn Ann Arbor which both draw strong demand from close proximity to the Michigan campus. Arbor Lodging, a Chicago-based hotel investment and management company, acquired both hotels in April 2022 for an undisclosed price. 

“This is a market we really like and believe in long term,” Jared Schlosser, head of credit originations at Peachtree Group, told CO. “We have a long-term relationship with the sponsorship, and they are very committed to that asset and this market.” 

Schlosser noted that the hotels in Ann Arbor’s Briarwood section are strongly positioned to attract guests for Michigan athletic events and corporate travel to the area. The hotels are also steps from Briarwood Mall, a mixed-use retail property on a former Sears site that will be adding luxury multifamily along with new entertainment and dining options.

Arbor Lodging did not immediately return a request for comment.

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