Southern Realty Trust Commits $21 Million to a Senior Whole Loan to Refinance a 15-Property Portfolio of Graduate by Hilton Hotels

WEST PALM BEACH, Fla., Feb. 19, 2026 (GLOBE NEWSWIRE) -- Southern Realty Trust Inc. (“SRT” or the “Company”), a lender on the Tannenbaum Capital Group (“TCG”) Real Estate platform, today announced that it has committed $21 million of a $69 million B-note, subordinate to a $337 million A-note held by a third party lender, on behalf of the borrower, AJ Capital Partners. The combined $406 million in proceeds were used for the refinancing of a 15-property portfolio of Graduate by Hilton hotels (the "Project"). An affiliate on the TCG Real Estate Platform holds the remaining $48 million of the B-note.

The Project reflects the borrower’s long-term strategy of investing in university-anchored lodging given its high-conviction in collegiate lodging demand and its belief in opportunities for continuing portfolio synergies. The portfolio consists of 15 full service, upscale hotels in major university markets across the U.S., including the University of Michigan, University of Virginia, and UC Berkeley.

"This transaction exemplifies our ability to identify compelling opportunities in markets with captive demand and limited new supply, and, as importantly, reflects our strong conviction in cultivating mutually valuable partnerships for the long-term," said Brian Sedrish, CEO of SRT. "By partnering with a top-tier institution to support the sponsor’s vision for these premier assets, we continue to execute on our mission of financing transitional CRE projects to deliver attractive risk-adjusted returns for our shareholders.”

About Southern Realty Trust Inc.

SRT was formed in 2023 to originate commercial real estate (“CRE”) debt investments primarily in the Southern U.S. and provide capital to high-quality borrowers and sponsors with transitional business plans collateralized by top-tier CRE assets with opportunities for near-term value creation, as well as recapitalization opportunities. SRT intends to create a diversified investment portfolio, targeting first mortgages, B-notes, mezzanine loans and debt-like preferred securities across CRE asset classes. For additional information regarding the company, please visit www.theSRTgroup.com.

About TCG Real Estate

TCG Real Estate refers to a group of affiliated CRE-focused debt funds, including a Nasdaq-listed mortgage real estate investment trust (“REIT”), Sunrise Realty Trust, Inc. (Nasdaq: SUNS), and a private mortgage REIT, Southern Realty Trust Inc. The funds provide flexible financing on transitional CRE properties that present opportunities for near-term value creation, with a focus on top-tier CRE assets located primarily within markets in the Southern U.S. benefiting from economic tailwinds with growth potential. For additional information regarding TCG, please visit www.theTCG.com.

About AJ Capital Partners

Adventurous Journeys ("AJ") Capital Partners is a vertically integrated real estate investment manager founded in 2008 and based in Nashville, Tennessee. AJ repositions real estate to build timeless, scalable businesses and brand platforms across hospitality, mixed-use, and residential sectors. Notable brands include Graduate Hotels®, Marine & Lawn Hotels & Resorts®, and Field & Stream Lodge Co. The firm delivers transformative real estate by applying placemaking, inspired design, and hospitality principles to spaces overlooked or undervalued by traditional investment firms. The firm’s current portfolio includes $6 billion of assets across 100+ properties and 50+ geographic markets. Learn more at www.ajcpt.com.

Forward-Looking Statements

Certain statements contained in this press release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. The Company’s forward-looking statements are generally accompanied by words such as “intend,” “will,” “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “potential,” “plan,” “goal” or other words that convey the uncertainty of future events or outcomes. Statements, among others, relating to the Company’s beliefs with respect to demand in the Colorado market and the Property’s positioning in the market and are forward-looking statements. Forward-looking statements contained in this press release speak only as of the date of this press release. The Company disclaims any obligation to update these statements unless required by law, and the Company cautions you not to rely on them unduly. The Company has based these forward-looking statements on its current expectations and assumptions about future events, which the Company considers reasonable. However, these forward-looking statements are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and beyond the Company’s control.

Investor Relations Contact

Robyn Tannenbaum
561-510-2293
ir@thetcg.com

Media Contact

Doug Allen
Dukas Linden Public Relations
646-722-6530
TCG@DLPR.com

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