Peachtree Supplies $28M EB-5-Backed Construction Loan for North Carolina Hotel

Miami developer Morlin Group has sealed $28 million of construction financing backed by funding from the EB-5 visa program for the development of a Homewood Suites by Hilton in Sugar Mountain, N.C., Commercial Observer has learned.

Peachtree Group originated the three-year, floating-rate loan for the planned 116-room hotel near the Sugar Mountain Ski Resort and Beech Mountain Ski Resort on an 8.65-acre development site Morlin acquired in April 2025.

Adam Greene, executive vice president of EB-5 at Peachtree, said the program, which is geared toward enabling foreign investors to receive green cards in exchange for financing U.S.  real estate projects, helped generate a more favorable deal for the borrower. The transaction marks the fifth EB-5 deal Peachtree has closed since Greene joined the lender in 2023 to help expand its EB-5 originations business. 

“In this case and in many cases where Peachtree implements EB-5, having that funding source from these foreign investors allows us to give developers a slightly better deal than they might otherwise get from traditional sources,” Greene told CO. “lt’s a really worthy development tool.” 

The EB-5 program was retooled in early 2022 after a nearly one-year pause. Meanwhile, President Donald Trump this month launched a “Gold Card’ visa program that is separate from EB-5 in which foreigners who contribute $1 million can quickly earn residency status. 

Greene noted that the Sugar Mountain area of western North Carolina near the Tennessee border has strong demand drivers for hospitality attracting plenty of tourists, as well being only 15 miles from Appalachian State University. Merlin Group received approval in January for the hotel, which will mark the first branded hotel in Sugar Mountain. 

“North Carolina tourism is really steady and, when you look at repeat visitors in various areas of the state, around 85 percent of the people staying are repeat visitors,” Greene said. “It’s a really steady market that has seen repeat visitors for a long time.”

A groundbreaking ceremony for the five-story hotel was held last week, with the project slated for completion in the second quarter of 2027, according to Seth Fellman, president and CEO of Morlin Group. Amenities will include an indoor pool, a fitness center, a 50-seat bistro lounge and 3,000 square feet of event space.

Morlin said the hotel is poised to generate large-scale business for corporate meetings, weddings and other events given the lack of of hotels in the area. He noted that hotel rooms should be booked all year long between visiting athletic teams facing nearby Appalachian State, parents weekend or alumni events at the college, and tourists attracted to two ski resorts. The region also draws many visitors for the annual Willy Worm Festival and Grandfather Mountain Highland Games.

“I don’t know how we won’t be sold out all year long,” Fellman said. “The demand is there.”

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