Peachtree Group has expanded its Delaware Statutory Trust (DST) portfolio with the acquisition of a new hotel property, the 90-key Home2 Suites by Hilton St Augustine I-95 in Jacksonville, Florida, US.
This marks the firm's sixth DST hotel acquisition and the third deal to close this year, following the Residence Inn Tampa Wesley Chapel DST last month.
The latest addition to Peachtree's holdings represents a strategic move within the thriving hotel sector, offering 1031 exchange investors tax deferral benefits and an investment opportunity.
The newly acquired Home2 Suites by Hilton is located off I-95, close to St. Augustine, Florida's historic tourist hub.
The city's attractions contribute to a consistent demand for hospitality services, increasing the investment's potential.
Peachtree's six DST acquisitions across various high-growth markets showcase their proficiency in pinpointing valuable opportunities within the hospitality industry.
These properties, including the recent Home2 Suites by Hilton St Augustine I-95, amount to approximately $175m in debt-free real estate transactions.
Peachtree president of 1031 Exchange/DST Products Tim Witt said: “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.
“This extended-stay hotel is well-positioned to meet the needs of leisure and business travellers alike, offering a blend of modern convenience and comfortable accommodations.”
Peachtree provides investors with solutions that align with 1031 exchange guidelines, facilitating the transfer of capital gains into passive investments within the hotel sector.
The Home2 Suites by Hilton features high-quality construction and extended-stay amenities that cater to guests' needs while leveraging strong brand recognition.
Strategically situated minutes from St Augustine's historic downtown, guests have easy access to major attractions such as the Castillo de San Marcos and St Augustine Premium Outlets.
Witt added: “Our focus on recognised hotel brands, value-add opportunities and Peachtree’s experienced hospitality management team ensures long-term potential for investors.”
Last month, Peachtree Group entered a long-term partnership with Michigan-based Group 10 Management, expanding its managed hotel portfolio by adding 14 new properties, encompassing 1,648 rooms, to its operations.
