Peachtree Group closes third Delaware Statutory Trust deal

Peachtree Group has closed its third hotel property structured as a Delaware Statutory Trust with the completed acquisition of its 98-key Hilton Garden Inn in Jackson, Tenn. Other terms related to the acquisition were not disclosed.

"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," Tim Witt, Peachtree Group's president, 1031 Exchange/DST Products, said in a statement.

The acquisition 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, according to Peachtree.

Since forming its DST program in Aug. 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 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.

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. 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.