The
90-key Home2 Suites by Hilton St. Augustine in the Jacksonville, Florida, area
is the sixth Delaware Statutory Trust acquisition for Peachtree overall.
JACKSONVILLE,
Florida — Atlanta-based Peachtree Group has made its sixth hotel acquisition
structured as a Delaware Statutory Trust (DST) with the 90-key Home2 Suites by
Hilton St. Augustine I-95 in the greater Jacksonville, Florida area.
The hotel
was acquired from an undisclosed seller for an undisclosed price. It’s the
third DST acquisition Peachtree has made this year following its purchase of
the 128-key Residence Inn Tampa Wesley Chapel in Tampa, Florida.
DST
acquisitions allow 1031 exchange investors to reinvest proceeds from the sale
of appreciated real estate, giving them tax-deferral benefits.
“This
property is a natural fit for our DST portfolio,” Tim Witt, president of 1031
Exchange/DST Products at Peachtree, said in a news release. “This extended-stay
hotel is well positioned to meet the needs of leisure and business travelers
alike.”
Peachtree’s
six DST acquisitions represent approximately $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.
Other
Peachtree deals
Earlier this
year, Hotel Investment Today talked to Michael Bernath, senior vice president
of acquisitions and dispositions for Peachtree, following the company’s
acquisition of the 100-key AC Hotel by Marriott in Park City, Utah, in
September from an undisclosed seller for an undisclosed amount.
At the time, it
was Peachtree’s sixth acquisition of the year with its other purchases
including the 128-key Residence Inn by Marriott in Wesley Chapel, Florida; the
114-key Residence Inn by Marriott in Oakhurst, New Jersey; the 146-key Home2
Suites by Hilton in Falls Church, Virginia; the 130-key Home2 Suites by Hilton
in Lawrenceville, Georgia; and the 180-key Hilton Garden Inn in Denver.
Because
Bernath leads on both the acquisition and disposition side, he said he’s seeing
the market play out in real time.
“We’ve seen
some more attractive financing options on our acquisition opportunities here
over the last three to four months and some of that has been baked into
pricing,” he said. “If nothing else, the perception of heading into a more
favorable interest-rate environment will help narrow that bid-ask gap and
ideally facilitate transactions.”