Peachtree passes $525 million in DSTs with hotel and industrial deals

Peachtree Group's Delaware statutory trust platform, launched in 2022, has crossed the half-billion mark. IREI reports the firm closed its 14th and 15th DSTs, PG Cape Canaveral DST and PG St. Louis Industrial DST. Cumulative proceeds total roughly $525 million.

The two properties sit at opposite ends of the operating spectrum. PG Cape Canaveral DST holds the 150-room Holiday Inn Express Cape Canaveral, a recently developed hotel across from Port Canaveral, which Peachtree calls the world's busiest cruise port. Demand runs from cruise passengers to Kennedy Space Center visitors to Cape Canaveral Space Force Station personnel and Space Coast leisure travelers. PG St. Louis Industrial DST holds a newly built, 48,206-square-foot Class A building in the St. Louis metro, fully leased to Cummins Inc. One is a business; the other is a contract.

In a DST, accredited investors buy fractional ownership of one institutionally managed property, and the structure permits 1031 exchange deferral on a prior property sale. Peachtree is using that wrapper to sell two income profiles. The hotel offers upside tied to Florida's Space Coast tourism economy. The Cummins building offers the steadier rent of a single-tenant industrial lease. The two offerings together let Peachtree avoid a single-property-type bet and give wealth managers a way to match client proceeds with a risk appetite.

The contrast runs deeper than asset class. Hotel cash flows reset nightly, so the Cape Canaveral property depends on cruise schedules, launch calendars, and leisure travel. The St. Louis building's income comes from a lease that runs for years, with the tenant largely responsible for operating costs. Peachtree is selling a choice between cash-flow volatility and income stability. The $525 million cumulative total suggests buyers have wanted both.

The timing helps. Commercial property sales rose 29.9 percent in the first half, PWD reported this week, citing Green Street's mid-year broker rankings. Each of those sales created a potential capital gain in search of deferral — exactly the pool DST sponsors chase. Mountain Dell Consulting puts Peachtree No. 7 among sponsors by year-to-date 2026 capital raise.

That ranking is a snapshot, not a verdict. It tracks this year's capital flows, not the durability of the platform behind them. Peachtree's run from zero to 15 offerings and $525 million since 2022 — about three DSTs a year — shows a firm that can source and sell product consistently. The hotel and industrial deals are the latest evidence. For a No. 7 sponsor, the question is how much of the 1031 pool it can capture before the field consolidates further.

Peachtree has now shown it can execute across hospitality and industrial. The next offering will reveal whether it re-ups in one of those sectors or steps into a third. For investors in 1031 products, that choice is the clearest clue of where Peachtree believes the tax-deferred market's most reliable demand sits.