In Brief: Peachtree Group has provided $12.75 million in bridge financing for a Gettysburg resort, with the loan expected to be repaid through a combination of USDA and C-PACE funding, highlighting the role of creative financing solutions in hospitality property transactions.
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The Barn Hotel in Gettysburg, Pa. – Image Credit Peachtree Group
Integrated Financing Strategy Combines Private Credit, Government-Backed Lending and C-PACE to Support Hotel Development
Peachtree Group announced it has originated a $12.75 million bridge loan for The Barn Hotel, a 70-room resort hotel within The Barn Resort in Gettysburg, Pa. The financing marks the first stage of a broader capital strategy that anticipates Peachtree originating an additional $31.2 million in USDA Business & Industry (B&I) and Commercial Property Assessed Clean Energy (C-PACE) financing to refinance the bridge loan and fund the hotel’s completion.
For The Barn Hotel, Peachtree’s bridge financing provides an immediate refinancing solution while the borrower works toward USDA B&I and C-PACE closings. The anticipated permanent financing will repay the bridge loan and fund the interior construction of 70 guestrooms across the third through fifth floors of the existing 130,000-square-foot building.
The 12-month, interest-only bridge loan refinances existing indebtedness associated with the property, providing the borrower with interim financing while advancing toward the anticipated permanent capital structure. The planned takeout consists of a $25 million USDA B&I loan and $6.2 million in C-PACE financing, both to be originated through Peachtree’s lending platform, subject to applicable approvals and closing conditions.
“This transaction demonstrates how we can bring together multiple financing capabilities to address a borrower’s needs throughout the investment lifecycle,” said Jared Schlosser, head of originations and C-PACE at Peachtree Group. “The bridge loan provides the capital needed today, while our USDA and C-PACE capabilities create a pathway to longer-term financing that supports the property’s completion. Rather than treating these as separate transactions, we can structure a coordinated financing solution from the outset.”
USDA B&I financing, supported by the U.S. Department of Agriculture’s loan guarantee program, helps eligible businesses in rural communities access financing for real estate, business expansion and other qualifying investments. The program can provide borrowers with longer-term financing through approved lenders, supporting economic development and job creation in eligible markets.
C-PACE financing provides long-term, fixed-rate, property-assessed capital for qualifying energy efficiency, water conservation and other eligible building improvements. With repayment terms extending up to 35 years, depending on state regulations, C-PACE allows property owners to spread improvement costs over an extended period while potentially reducing their reliance on conventional debt and equity financing.
Together, these programs can provide complementary capital sources for eligible commercial real estate projects. USDA B&I financing can support broader project and business financing needs, while C-PACE can fund qualifying building improvements, creating a more comprehensive capital structure.
“USDA B&I financing is an important but often overlooked source of capital for commercial real estate projects in eligible rural communities,” said Zach Chandler, senior vice president, strategy, government lending at Peachtree Group. “When combined with C-PACE, it can provide a compelling, long-term financing solution for hospitality and commercial real estate developments that might otherwise face limited conventional lending options. This transaction illustrates how we can use these programs to support business expansion, encourage private investment and create economic opportunities in rural markets.”