Peachtree makes third DST deal of 2024

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.”