Peachtree Group has expanded its hospitality portfolio with a new Delaware Statutory Trust (DST) investment. The real estate investment company has acquired its sixth hotel structured as a DST — the 90-room Home2 Suites by Hilton St. Augustine I-95 in the greater Jacksonville, Fla., area. Other terms of the transaction were not disclosed.
This new DST investment is the third to close this year, following the completion of the Residence Inn Tampa Wesley Chapel DST in November.
Home2 Suites by Hilton St. Augustine benefits from its location off I-95 and proximity to the tourist destination of St. Augustine. Drawing millions of visitors annually, St. Augustine creates year-round demand for accommodation, Peachtree said in a statement.
The extended-stay hotel is well-positioned to meet the needs of leisure as well as business travelers, said Tim Witt, president of 1031 Exchange/DST products at Peachtree.
“With its premier location along the I-95 corridor, strong population growth in the surrounding area and St. Augustine’s rich historical and cultural appeal, this property is a natural fit for our DST portfolio,” Witt said.
The hotel features institutional-quality construction, suites with extend-stay amenities and strong brand recognition. Located close to St. Augustine’s downtown, the hotel offers easy access to popular attractions, the Castillo de San Marcos, St. Augustine Premium Outlets and beaches. The property’s appeal and position for continued demand is further enhanced by the nearby mixed-use projects, healthcare facilities and luxury apartments.
Peachtree’s six DST acquisitions are located in high-growth markets and represent roughly $175 million in debt-free real estate transactions.
“Our focus on recognized hotel brands, value-add opportunities and Peachtree’s experienced hospitality management team ensures long-term potential for investors,” Witt said.
Peachtree’s DST hospitality acquisitions present opportunities for 1031 exchange investors seeking to reinvest proceeds from the sale of appreciated real estate while enjoying tax deferral benefits and maintaining a strong allocation in the hotel sector. Peachtree capitalizes on positive secular trends in travel, inflation-resilient pricing models and the operational complexities of the hospitality sector to deliver a strong potential for continued success and stability in its DST portfolio.
