Commercial real estate investment firm Peachtree Group has closed its third hotel property structured as a Delaware Statutory Trust (DST) with the completed acquisition of its 98-key Hilton Garden Inn Jackson in Jackson, TN.
“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, president, 1031 Exchange/DST Products, Peachtree Group.
This strategic acquisition presented an 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, according to the company.
Since forming its DST program in August 2022, Peachtree Group has become a top-15 sponsor in the securitized 1031 exchange marketplace, according to a year-end market equity update from Mountain Dell Consulting.
The other two DST acquisitions included the 100-key Courtyard by Marriott Atlanta Kennesaw (Atlanta MSA) and the 126-key Home2 Suites by Hilton Chandler (Phoenix MSA). These two properties also benefit from strong, growing and diversified demand drivers, according to Peachtree.
All three acquisitions, totaling more than $83.8 million in real estate-related transactions, were acquired debt-free.
“Hotels represent an enticing investment due to the enduring secular trends that propel them forward,” Witt said. “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.”