Stonehill commercial real estate group closed $200m loans

Opus Atlanta, a mixed-use development in Atlanta, is one of the deals completed by Stonehill CRE, the commercial real estate group of investment firm Stonehill.

STONEHILL CRE, THE commercial real estate group of investment firm Stonehill, has originated and purchased $200 million worth of first mortgages since its launch in the second quarter of 2022. The companies expect to realize an additional $100 million in loans and other transactions by the year. end, based on deals in its pipeline, and Stonehill CRE is targeting more than $500 million in deals for 2023.

Stonehill CRE, formed in May with Daniel Siegel as Chairman, is designed to work across all real estate sectors to address current market volatility and enable property owners to execute their business plans, depending on the company. His work made Stonehill the 10e the largest U.S. hotel lender in 2021, according to the Mortgage Bankers Association. Atlanta-based Stonehill and Stonehill CRE are subsidiaries of the Peachtree Group, led by Jatin Desai and Mitul Patel as managing directors.

“The formation of Stonehill CRE came at a fortuitous time as market conditions created a dislocated lending environment for commercial real estate,” Siegel said. “Traditional lenders have not only slowed commercial real estate lending, but also tightened underwriting standards, allowing us to provide the liquidity needed for maturing loans, new acquisitions and construction projects.”

Stonehill CRE transactions that have been closed include:

  • Opus Atlanta, a mixed-use development in Atlanta
  • Malls of New Jersey and Kentucky
  • Land loans in buoyant markets in the South-East
  • Buying a non-performing office loan in Washington, DC

“Opus Atlanta is a great example of how Stonehill can initiate and close a complex mixed-use development site transaction that traditional lenders would not typically consider executing,” said Siegel. “With our downside protected by one of the best remaining locations in a coveted Midtown Atlanta submarket, we were able to provide a degree of certainty to the borrower that we could complete this transaction on schedule.”

Stonehill CRE is also finalizing transactions on multi-family development, office, build-to-let projects and an additional retail project.

“All of our commercial real estate creations and transactions are consistent with our investment philosophy of deploying capital in a disciplined manner while providing ownership groups with thoughtful capital solutions and certainty of execution,” said Siegel.

In July, Stonehill generated $79.8 million, a three-year variable rate bridge loan to New York-based Churchwick Partners for the acquisition of a hotel portfolio of 12 extended-stay properties. The deal was predicated on the strong performance of extended-stay hotels, even during the pandemic.


Comments are closed.