Peachtree Group Launches Fifth Hotel DST With Tampa Acquisition
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Peachtree Group, a commercial real estate investment firm with a $6.4 billion portfolio of equity and debt investments, announced the launch of its fifth hotel property structured as a Delaware statutory trust following the completed acquisition of the 128-key Residence Inn Tampa Wesley Chapel in the Greater Tampa, Fla., area.
PG Wesley Chapel DST is seeking to raise $34 million from accredited investors seeking to complete a tax-deferred 1031 exchange and allocate funds within the hotel sector.
The purchase price of the Residence Inn Tampa Wesley Chapel was not disclosed. The property is situated in Pasco County, a rapidly growing suburban community approximately 20 miles from downtown Tampa. According to industry sources, the county’s population grew by nearly 9% from 2020 to 2023, making it one of the fastest-growing counties in Florida, driven by both residential and commercial development.
“The hotel’s prime location in the Wiregrass Ranch master-planned community, combined with its proximity to the Wiregrass Ranch Sports Campus, makes it a valuable addition to our growing portfolio of DST properties,” said Tim Witt, president of 1031 Exchange/DST Products at Peachtree. “With activities and tournaments at the 98,000-square-foot sports complex boosting weekend business for the hotel and Pasco County’s investment in expanding the facility, we anticipate strong demand from both leisure and business travelers.
“Further bolstering our off-market acquisition is the fact that it was recently appraised for nearly $900,000 above our purchase price,” Witt said.
Peachtree’s five DST acquisitions – the 130-key Home2 Suites by Hilton Atlanta Sugarloaf; 100-key Courtyard by Marriott Atlanta Kennesaw; 126-key Home2 Suites by Hilton Chandler near Phoenix; 98-key Hilton Garden Inn in Jackson, Tenn.; and the recently acquired Residence Inn Tampa Wesley Chapel – total over $150 million in debt-free real estate transactions.
Peachtree announced the closure of its Home2 Suites by Hilton Atlanta Sugarloaf DST in August and its PG Jackson TN DST earlier this year. Its Hilton Garden Inn in Jackson was Peachtree’s third hotel property structured as a DST. The hotel was acquired for $21 million and launched in October 2023, raising more than $26.8 million in equity.
According to Peachtree, the acquisitions align with its core DST investment strategy, which focuses on recognized hotel brands in high-growth markets, value-add opportunities, and properties managed by experienced hotel management teams.
“Positive secular trends in travel are fueling long-term growth in the hospitality industry. The rising middle class, a focus on experiential travel and the expansion of the work-from-anywhere culture are driving demand for unique and extended stays. These factors create a strong foundation for sustained growth and stability in the hotel sector, making it an attractive investment for the future,” Witt said.
According to Mountain Dell Consulting as of Aug. 31, 2024, Peachtree Group has had an equity raise of $39.4 million via its DST offerings year-to-date, ranking 18th among sponsors. The firm formed its DST program in August 2022.
Peachtree Group is an investment firm driving growth with a diverse portfolio of commercial real estate assets and other ventures. The company has executed hundreds of investments since its inception, focusing on real estate acquisition, development, and lending valued at more than $9.7 billion in total market capitalization.
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