Peachtree Group closes third DST acquiring HGI Jackson, Tennessee

PEACHTREE GROUP, A commercial real estate investment firm with a $6.4 billion portfolio, has closed its third hotel property structured as a Delaware Statutory Trust with the acquisition of the 98-key Hilton Garden Inn in Jackson, Tennessee. The acquisition provides 1031 exchange investors the chance to reinvest proceeds from real estate sales, enjoying tax deferral benefits and maintaining a strong real estate allocation, Peachtree said in a statement.

“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’s president for 1031 Exchange/DST Products.

Peachtree launched its DST program in August 2022 and is a top-15 sponsor in the securitized 1031 exchange marketplace, according to Mountain Dell Consulting's year-end market equity update.

Peachtree said that the other two DST acquisitions were the 100-key Courtyard by Marriott Atlanta Kennesaw, Georgia, and the 126-key Home2 Suites by Hilton Chandler, Arizona. These properties also benefit from strong, growing, and diversified demand drivers. All three acquisitions, totaling more than $83.8 million in real estate-related transactions, were acquired debt-free, the company said.

“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.”

In February, Peachtree Group secured $150 million in commercial PACE financing in December, reaching nearly $750 million since its establishment in 2019. The company completed 23 CPACE financing deals in the U.S. in 2023, totaling $250 million in directly originated and balance-sheet-funded transactions.