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Peachtree Group Successfully Closes Third DST With TN Hotel

Peachtree Group Successfully Closes Third DST With TN Hotel. Alternative investments, Delaware statutory trust, DST, 1031 exchange, Peachtree Group, hospitality, hotels

Peachtree Group, a commercial real estate investment firm with a $6.4 billion portfolio of equity and debt investments, announced the successful closure of its third hotel property structured as a Delaware statutory trust with the completed acquisition of its 98-key Hilton Garden Inn in Jackson, Tenn.

The Hilton Garden Inn is in West Tennessee, which Peachtree says offers direct access to diverse “demand drivers” in the area.

“The hotel’s strategic location near healthcare and manufacturing jobs, including Ford’s planned $5.6 billion Blue Oval City, along with a diverse collection of entertainment and retail destinations, establishes it as a valuable addition to our expanding portfolio of DST properties,” said Tim Witt, Peachtree Group’s president for 1031 exchange/DST products.

Peachtree says this acquisition – acquired by the DST for $21 million – presented a compelling opportunity for 1031 exchange investors seeking to reinvest proceeds from the sale of appreciated real estate while enjoying tax deferral benefits and maintaining a robust allocation to real estate. The private placement offering, PG Jackson TN DST, launched last October and raised more than $26.8 million in equity.

Since forming its DST program in August 2022, Peachtree Group has quickly become a Top 15 sponsor in the securitized 1031 exchange marketplace, according to a year-end market equity update from Mountain Dell Consulting.

The company has sponsored two other DST programs which acquired the 100-key Courtyard by Marriott Atlanta Kennesaw and the 126-key Home2 Suites by Hilton Chandler near Phoenix.

All three acquisitions, totaling more than $83.8 million in real estate-related transactions, were acquired debt-free. According to Peachtree Group it is committed to innovation and investor satisfaction, aligning with the core principles of the 1031 exchange and offering investors a seamless avenue to transition capital gains into a new passive investment, particularly within the thriving hotel sector.

“Hotels represent an enticing investment due to the enduring secular trends that propel them forward. The anticipated growth in travel-related expenditure, expected to grow from $10 trillion to $15 trillion over the next decade, fuels the optimistic outlook. Moreover, hotels stand to benefit from the enduring imbalance between growing demand and slower supply, further solidifying hotels’ position as a resilient investment,” Witt said.

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 almost $9.7 billion in total market capitalization. Peachtree manages over $3.4 billion in capital, augmented by services designed to protect, support and grow its investments.

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