DST Offering Detail
Peachtree Group - PG Jackson TN DST
DST Offering Highlights
Peachtree Group PG Jackson TN DST consists of a hotel property located in Jackson, Tennessee in Madison County–14 minutes northwest of downtown Jackson. The property operates as a Hilton Garden Inn, a select-service hotel that is part of the Hilton network of hospitality properties. Built in 2017, the 4-story structure consists of 98 guest suites with living areas. Suites are equipped with individual work areas, which include ergonomic desk chairs, a Keurig coffee machine, mini fridge and microwave. Located in southwest Tennessee, the city of Jackson is the 8th largest city in the state and dubbed, “The Hub City,” due to Jackson’s history as a railroad town and its optimal location between Memphis and Nashville, providing convenient access to both. Jackson is also regarded as an entertainment hub serving over 400,000 people. The region offers a diverse employment landscape led by the healthcare, transportation, manufacturing, distribution and entertainment industries. Top employers in the Jackson MSA include West Tennessee Healthcare, The Kellogg Company, Stanley Black & Decker, Delta Faucet Company and the Jackson-Madison County School System. Importantly, Ford Motor Company is in the process of constructing a $5.6 billion campus known as “BlueOval City” 40 miles west of Jackson.
| Property Status: | Closed Offering |
|---|---|
| Property Type: | Hospitality |
| Property State: | Tennessee |
| Property City: | Jackson |
| Properties: | 1 |
| Units: | N/A |
| Offering Size: | $26,845,615 |
| Equity Offering: | $26,845,615 |
| Loan-to-Value: | 0% |
| Loan Terms: | No Debt |
| Cash Flow: | Call to Confirm |
About Peachtree Group
Founded in 2008, Peachtree Group is a private real estate investment firm specializing in hotel assets across the United States. With a portfolio totaling $9 billion, the company provides a range of services, including development, investment, loan origination, and property management. Peachtree Group exercises control over a multibillion-dollar investment portfolio, implementing direct investment strategies within its various operating and real estate divisions, including hospitality, commercial lending, residential development, and capital markets. Additionally, Peachtree Hospitality Management oversees a diverse portfolio of 90 owned and third-party managed hotels spanning 26 brands, comprising more than 11,000 rooms situated across 22 states.
Benefits of a Delaware Statutory Trust
Delaware Statutory Trusts are a popular 1031 Exchange replacement property option that allows for fractional ownership of high-quality institutional properties acquired by and managed by large real estate firms, referred to as DST sponsors. DSTs provide a unique and flexible solution to investment property owners who want to defer tax and continue to own investment property without the management requirements of directly owned property. Below are some of the benefits of investing in DST real estate.
- Tax Savings: DSTs allow for the deferral of federal capital gains tax, state capital gains tax, net investment income tax, and depreciation recapture tax. The tax savings can be significant, especially in states where the potential tax liability can be as high as 42%.
- Monthly Income Potential: DSTs are structured with an emphasis on cash flow for investors and typically include high-quality institutional property.
- Eliminate Active Property Management: Ownership of a DST is entirely management free.
- Eliminate Tax for Estate Beneficiaries: DSTs allow for a “step-up in basis” upon the passing of an owner (elimination of Capital Gains, Depreciation Recapture, and Net Investment Income Tax).
- Low-Cost Non-Recourse Debt Matching: Most investors have debt that must be matched in their exchange, therefor many DSTs are structured with debt in place.
- Low Risk of a Failed 1031 Exchange: Extensive DST property due diligence is prepared in advance and DST closings can occur quickly – in a matter of days.
DST Risks
DSTs offer many benefits however they are not suitable for everyone and come with risks. Therefore, DSTs are only available to accredited investors. Before deciding to invest in DST real estate, carefully consider the following considerations: Lack of liquidity, timing of exit, lack of control, and interest rates can affect financing, leasing, and appreciation. Additionally, loan modifications may not always be possible, cash flow is not guaranteed, and projected appreciation may not occur. There are also management costs and fees associated with owning DSTs which are disclosed in the prospectus. While not a precisely defined term, a high grade, institutional-grade, or institutional-quality property generally refers to a property of sufficient size and stature to merit attention from large national or international investors.
