Peachtree acquires sixth DST hotel in St. Augustine, FL

PEACHTREE GROUP RECENTLY acquired its sixth hotel property structured as a Delaware Statutory Trust, the 90-key Home2 Suites by Hilton St. Augustine in the greater Jacksonville, Florida. This is the third DST offering to close this year.

The company’s DST hospitality acquisitions provide opportunities for 1031 exchange investors to reinvest proceeds from the sale of appreciated real estate, defer taxes and maintain an allocation in the hotel sector, Peachtree said in a statement.

“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,” said Tim Witt, Peachtree's president of 1031 exchange and DST products. “This extended-stay hotel is well-positioned to meet the needs of leisure and business travelers alike, offering a blend of modern convenience and comfortable accommodations.”

Peachtree is led by CEO and Managing Principal Greg Friedman, CFO and Managing Principal Jatin Desai and Principal Mitul Patel.

The new property, near St. Augustine’s historic downtown, is close to Castillo de San Marcos and beaches, the statement said. Nearby developments, including mixed-use projects, healthcare facilities and luxury apartments, support future demand.

Peachtree’s six DST acquisitions highlight the company’s expertise in identifying opportunities within the hospitality sector, the statement said. These acquisitions, including the Home2 Suites by Hilton St. Augustine, total 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.

In September, Peachtree acquired its fifth DST hotel, the 128-key Residence Inn Tampa Wesley Chapel, after purchasing the Home2 Suites by Hilton Atlanta Sugarloaf DST in August. The company’s credit team recently surpassed $1 billion in year-to-date loan originations and projects $1.75 billion by the end of 2024.