Peachtree Backs $62.5M Refi for Nashville’s Graduate by Hilton

Peachtree Backs $62.5M Refi for Nashville’s Graduate by Hilton

CBRE Group, Inc. recently facilitated a $62.5 million loan provided by Peachtree Group to refinance the Graduate by Hilton hotel in Nashville. The three-year financing, which includes two 12-month extension options, supports the 205-room property situated directly across from Vanderbilt University. The loan allows owner AJ Capital Partners to recapitalize the asset, which originally opened its doors in late 2019.

The financing comes as the hotel sector continues to stabilize following the disruptions of the pandemic. According to Peachtree Group’s head of credit originations, Jared Schlosser, the Nashville location has seen its performance improve steadily throughout the year. This recovery is aided by a strategic shift in operations; Hilton took over management of the Graduate brand in 2024, while AJ Capital retained ownership. Schlosser indicated that this partnership has helped the hotel expand its customer base beyond just university visitors.

Located at 101 20th Avenue North, the property sits in Nashville’s Midtown neighborhood, a hospitality submarket benefiting from proximity to major demand drivers. In addition to Vanderbilt, the hotel serves guests visiting the Vanderbilt University Medical Center, Belmont University, and Bridgestone Arena. The venue features amenities such as a rooftop pool, a fitness center, and White Limozeen, a Dolly Parton-themed rooftop restaurant and bar.

Brokerage teams often play a crucial role in arranging such capital stacks. Currently, CBRE is trading with a market capitalization of approximately $43.67 billion. The firm’s shares were down 1.36% in the latest session, closing at $148.77 compared to a previous close of $150.82.

What to watch

• Future performance reports regarding the Graduate Nashville’s revenue per available room (RevPAR) under Hilton’s management.
• Peachtree Group’s potential exercise of the 12-month extension options on the loan.
• Upcoming earnings from CBRE for insights into the broader commercial real estate financing environment.

Source: original release