PG St. Augustine DST

$24,392,426

Available as of

November 25, 2024

6.01% Y1 CoC

Asset Class

Hospitality

Offering Type

DST

Strategy

Core+

Equity Offered:

$24,392,426

Availability:

$24,392,426

Invest Now

Minimum:

$100,000

Offering Documents

Link

Peachtree Group

Equity Raised

$3.7 billion

Assets Acquired

$9.7 billion

Full Cycle Performance

26.69% IRR

The Sponsor, Peachtree Hotel Group II, LLC, a Georgia limited liability company (“Peachtree Group”), and Peachtree Hospitality Management, a Georgia limited liability company (“Peachtree Management”), focus on acquiring and managing high quality hospitality properties in fast-growing markets across the United States. The Sponsor and Peachtree Management are wholly owned and controlled by Greg Friedman, Jatin Desai, and Mitul Patel.

Peachtree Group is a privately held real estate investment company that finances, owns, operates, manages and develops hotel and hotel-related assets throughout the United States. Founded in 2008, Peachtree Group has invested, through acquisition, origination or development, in a portfolio of more than 660 hotels and mortgage loans secured primarily by hotel properties, with a cost basis of more than $10 billion as of the date of this Memorandum. Peachtree Group and its affiliates provide investment services, loan origination, loan servicing, property management, asset management, development and construction/renovation management for nationally branded, limited-service, full-service and select-service hotels located throughout the United States.

Peachtree Group manages and controls a multibillion-dollar investment portfolio and direct investment strategies across its distinct operating and real estate divisions, including hospitality, commercial lending, residential development and capital markets. The Sponsor’s track record spans more than 144 real estate transactions and $3.8 billion in total capitalization of real estate assets.

Peachtree Group utilizes proprietary systems and processes to maximize every asset’s financial performance and value. It delivers efficiencies to enable franchisors to provide guests with unique and memorable experiences. Peachtree Hospitality Management operates 81 owned and third-party managed hotels across 26 brands with more than 10,000 rooms located in 22 states.

Strong Market Drivers

Home2 Suites St. Augustine I-95 is located 34 miles south of Downtown Jacksonville, FL. The Jacksonville MSA, with a population of 1.7 million in 2023, has grown 6.7% since 2020, making the city the third fastest growing MSA in the country among MSAs with a population greater than 1 million.
As the oldest continuously occupied settlement in the US, founded in 1565 by Spanish explorers, St. Augustine boasts a growing population of approximately 15,900 in 2024 – a notable 8.3% increase from 2020.
St. Augustine typically sees more than two million visitors per year, contributing $1.41 billion to the local economy in 2022, including $490 million spent on accommodations.

Experienced Hotel Management

Peachtree Hospitality Management, a division of Peachtree Group, sees opportunities for growth and expense management at the property that were not realized by the previous management company.
Peachtree Hospitality Management currently manages the performance of 93 hotels across 24 brands, with more than 11,000 rooms located in 24 states.

Recognized Brand

Hilton Hotels & Resorts operates 24 brands and over 7,800 properties in 126 countries and territories.
Home2 Suites, designed for extended stays with all-suite rooms, has more than 700 properties and was named No. 1 Upper Midscale / Midscale Extended Stay brand in J.D. Power’s 2024 North America Hotel Guest Satisfaction Index Study for the second year in a row.
The property benefits from the Hilton Honors 195-million-member loyalty program and Hilton’s strong reservation system to source high volume guests at favorable rates.

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