DST Offering Detail
Peachtree Group PG Sugarloaf DST
DST Offering Highlights
Peachtree Group PG Sugarloaf DST consists of a hotel property located in Lawrenceville, Georgia – 30 minutes northeast of downtown Atlanta. The property operates as a Home2 Suites, which offers extended stay options for guests as part of the Hilton network of hospitality properties. Built in 2019, the 4-story structure consists of 130 guest suites. The DST plans to implement a brand-mandated Property Improvement Plan (PIP) for the common areas and room interiors. Major improvements will include the modernization of the hotel lobby and corridors, and the replacement of furniture, decor and carpet in guestrooms .The property is located in the Atlanta Northeast submarket, containing the Northside Hospital Gwinnett, a Level II trauma center, and Sugarloaf Mills, Georgia’s largest value shopping, entertainment and dining destination. The Gas South District, located less than two miles away from the property, is home to a performing arts center, the 13,000-seat Gas South Arena and a 111,600 square foot convention center.
| Property Status: | Closed Offering |
|---|---|
| Property Type: | Hospitality |
| Property State: | Georgia |
| Property City: | Lawrenceville |
| Properties: | 1 |
| Units: | 130 |
| Offering Size: | $32,201,767 |
| Equity Offering: | $32,201,767 |
| 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.
