Peachtree Group, a commercial real estate investment firm with a multibillion-dollar portfolio of equity and debt investments, has launched its latest hotel property structured as a Delaware statutory trust, the 114-key Residence Inn Ocean Township, located along the Jersey Shore in New Jersey. It marked Peachtree’s eighth DST offering since launching the program in 2022.
Peachtree did not reveal the targeted equity raise of the offering, PG Ocean DST. Given the debt-free nature of its eight property, $220 million portfolio, it is safe to assume they are seeking approximately $25 million to $30 million, which is typical of their other DST offerings.
“This newly developed property represents everything we look for in a DST offering, strong market fundamentals, a leading extended-stay brand and long-term upside driven by secular tailwinds in travel,” said Tim Witt, president of 1031 exchange/DST products at Peachtree.
Residence Inn Ocean Township is located in Monmouth County, one of the wealthiest counties in the country. The hotel benefits from proximity to popular beach destinations such as Asbury Park, Long Branch and Sandy Hook, supporting steady leisure demand.
The region’s diverse economy – anchored by healthcare, education and technology – drives consistent lodging needs throughout the year. Looking ahead, Peachtree said Netflix is investing $900 million to redevelop nearby Fort Monmouth into its primary East Coast production hub, a project expected to create 3,500 construction jobs and 1,500 permanent jobs, as well as further boost hospitality demand.
“With the opening of Residence Inn Ocean Township in 2024, we’re providing investors access to a debt-free, income-generating asset in a premier coastal market. It’s a strategic fit for investors seeking tax deferral through a 1031 exchange while preserving exposure to one of the most resilient sectors in commercial real estate,” Witt said.
According to the company, Peachtree’s DST properties present a compelling option for 1031 exchange investors seeking to reinvest proceeds from the sale of appreciated real estate while deferring taxes and maintaining exposure to the hotel sector. The firm’s eight DST offerings total more than $220 million in debt-free real estate transactions, each aligned with Peachtree’s core strategy of acquiring recognized hotel brands in high-growth markets, pursuing value-add opportunities and leveraging experienced hotel management teams to drive long-term performance and value creation.
In February of this year, Peachtree expanded its DST platform to include investments in multifamily properties. The announcement coincided with the hiring of Jordan Hylton to lead the firm’s DST multifamily investments as senior vice president of multifamily acquisition.
It also reflected the evolution of Peachtree’s approach, according to the firm, building on lending across various commercial real estate sectors and leveraging its vertically integrated, scalable investment platform.
Peachtree’s PG St. Augustine DST launched last December and seeks to raise nearly $24.4 million from accredited investors. And in September 2024, AltsWire reported that the company launched PG Wesley Chapel DST, its fifth hotel DST, seeking to raise $34 million.
Peachtree Group is an investment firm driving growth with a diverse portfolio of commercial real estate assets and other ventures. The company has executed hundreds of investments since its inception, focusing on real estate acquisition, development, and lending valued at more than $9.7 billion in total market capitalization.
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