Creative Media & Community Trust Corporation (NASDAQ: CMCT) said it has signed a definitive agreement to sell its lending division to PG FR Holding, LLC, an affiliate of Atlanta-based Peachtree Group. The deal is expected to generate approximately $31 million in net cash for CMCT at closing and advances the company’s pivot toward multifamily growth and balance-sheet strength. [1]
- What happened: CMCT agreed to sell its lending business (First Western SBLC, Inc., doing business as PMC Commercial Trust) to a Peachtree Group affiliate for a purchase price estimated at ~$44 million (net of securitized loan debt). Closing requires U.S. Small Business Administration consent and other customary conditions. [2]
- Use of proceeds: CMCT expects about $31 million of net cash after debt paydown and fees; management framed the move as consistent with priorities to grow a premier multifamily portfolio, improve liquidity and strengthen the balance sheet. [3]
- Leadership changes at close:Barry Berlin will resign as EVP, CFO, Treasurer and Secretary at closing; Brandon Hill will become CFO and Treasurer, and Christopher Filosa will become Secretary. Related terms and timing are detailed in CMCT’s Form 8‑K. [4]
- Stock reaction: Shares surged intraday on heavy volume after the announcement; premarket reports flagged gains of 70%+. [5]
- What’s next: CMCT plans to release Q3 2025 results on Friday, Nov. 14 (before market open) and host a 12:00 p.m. ET conference call. [6]
Deal details: exiting SBA lender PMC/First Western
CMCT is divesting First Western SBLC, Inc. (operating as PMC Commercial Trust), a national direct lender focused on SBA 7(a) loans. Peachtree said the acquisition expands its credit platform and noted PMC’s Preferred Lender Program (PLP) designation; PMC is one of only 12 SBA-licensed SBLCs. Closing is subject to SBA consent and customary conditions. [7]
In its announcement, CMCT estimated a ~$44 million purchase price (measured net of certain 2023 securitization debt on loan receivables) and ~$31 million in expected net cash to CMCT after fees and other obligations. The company emphasized the divestiture supports its focus on multifamily investments and liquidity improvements. [8]
A concurrently filed Form 8‑K adds that the membership interest purchase agreement is dated Nov. 6, 2025, and includes an “outside date” allowing either party to terminate if the transaction does not close by June 30, 2026. [9]
Leadership: CFO transition tied to closing
At closing, Barry Berlin will step down from his roles at CMCT and move to work with the buyer or an affiliate; Brandon Hill will become Chief Financial Officer and Treasurer, while Christopher Filosa will serve as Secretary. The roles and related agreements are outlined in CMCT’s 8‑K. [10]
Strategy: sharpening the multifamily focus
CMCT framed the sale as part of a broader repositioning begun in 2024 to concentrate capital on its premier multifamily platform and de‑risk its balance sheet. The company highlighted completed refinancings, debt‑maturity extensions on multifamily assets, and repayment of its recourse credit facility as recent steps along that path. [11]
Market reaction
Intraday trading (Nov. 12): CMCT shares spiked on the news, trading sharply higher on volume far above recent norms. As of the latest print, price, range and volume were: $8.77 (high $10.89, low $5.90; volume 31.64M). Pre‑market coverage earlier in the day also cited gains exceeding 70%. [12]
What to watch next
- Earnings (Nov. 14): CMCT will report Q3 2025 results before the opening bell on Friday, Nov. 14, followed by a 12:00 p.m. ET conference call hosted by CEO David Thompson, CFO Barry Berlin, and Steve Altebrando. Guidance around use of proceeds and multifamily pipeline will be key. [13]
- Closing conditions: Timing hinges on SBA consent and other customary conditions. The 8‑K specifies the June 30, 2026 outside date, adding a long‑stop for deal completion. [14]
- Capital deployment: Investors will watch how CMCT allocates the ~$31M—whether toward acquisitions, deleveraging, or liquidity reserves—given management’s stated priorities. [15]
The buyer: Peachtree Group’s SBA push
Peachtree says the PMC/First Western acquisition will fold SBA 7(a) loans into its integrated credit offerings, which already span bridge, permanent, and other structured real‑estate financing products. The firm emphasized PMC’s PLP status and decades‑long SBA lending history as accelerants for the platform. [16]
Company background
CMCT is a real estate investment trust that owns, operates, and develops multifamily and creative office assets in U.S. markets, with operating expertise via affiliates of CIM Group, L.P. Today’s divestiture is positioned as furthering that core real‑estate focus. [17]
Sources & filings (Nov. 12, 2025)
- CMCT press release: sale of lending division; strategic rationale; expected net cash; leadership changes. [18]
- SEC Form 8‑K: deal agreement date; SBA consent; outside date; officer transitions and related agreements. [19]
- Peachtree press release: buyer’s rationale; PMC/First Western profile; PLP status; SBA 7(a) focus. [20]
- Real‑time market data: CMCT price, intraday range and volume.
- Market coverage: intraday/premarket share‑price moves and timeline. [21]
Disclosure: This article is for informational purposes only and does not constitute investment advice. All forward‑looking statements are subject to risks and uncertainties described by the company and in its SEC filings.
References
1. www.businesswire.com, 2. www.businesswire.com, 3. www.businesswire.com, 4. www.sec.gov, 5. www.benzinga.com, 6. www.businesswire.com, 7. www.businesswire.com, 8. www.businesswire.com, 9. www.sec.gov, 10. www.businesswire.com, 11. www.businesswire.com, 12. www.benzinga.com, 13. www.businesswire.com, 14. www.sec.gov, 15. www.businesswire.com, 16. www.businesswire.com, 17. www.businesswire.com, 18. www.businesswire.com, 19. www.sec.gov, 20. www.businesswire.com, 21. www.benzinga.com
