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Current Offerings  /  PG Cape Canaveral DST
Available506(c)721 Exchange: None

PG Cape Canaveral DST

SponsorPeachtree
LocationFlorida
Property TypeHospitality
$48,204,995
Total Investment
0%
LTV
6.52%
Income Average
10 years
Estimated Hold Period

Investment Description

The Trust owns the 150-key Holiday Inn Express Cape Canaveral, a 2023-built, four-story limited-service hotel on 5.01 acres at 995 Shorewood Drive, Cape Canaveral, Florida. The hotel contains 78,341 square feet and operates under an IHG franchise agreement scheduled to run through July 2046.

The $40.0 million property acquisition is funded through a $48.20 million all-cash equity offering. The Trust master leases the hotel to PG Cape Canaveral Master Tenant, a sponsor affiliate that operates the hotel and pays Base, Additional and Bonus Rent. IHG is the franchisor, not a guarantor of Trust distributions. No 721/UPREIT exit program is identified.

Investment Sponsor
Peachtree
Availability Status
Available
Registration
506(c)
721 Exchange
None
Property Type
Hospitality
Equity
$48,204,995
Debt
$0
Total Investment
$48,204,995
LTV
0%
Initial Reserves
$750,000
Lender
None — no permanent mortgage
Amortization
None
Estimated Hold Period
10 years

Projected Cash Flow

Cash Flow Basis: Projected Investor Distribution · Forecast Through: Year 10 · Post-Forecast Treatment: 10-Year Projection
PPM provides a 10-year investor distribution forecast: 6.04% in Year 1 to 7.16% in Year 10.

Highlights

1
150-key Holiday Inn Express, built in 2023, with franchise term scheduled through July 2046.
2
All-cash structure eliminates mortgage maturity and interest-rate exposure.
3
Projected cash-on-cash return rises from 6.04% in year 1 to 7.16% in year 10.
4
Master Lease requires Base, Additional and Bonus Rent; Master Tenant bears hotel operating performance.
5
Coastal Cape Canaveral location near cruise, space and leisure demand generators.

Jerry Baker's Notes

Before you read these notes

Jerry Baker's Notes are his opinion, shared to help frame a conversation. They are not investment advice, a recommendation, or an offer, and they are not a substitute for the offering documents. Review the Private Placement Memorandum for complete information, including risk factors, before making any decision.

I understand · Show the notes

The all-cash capitalization removes debt service and refinance risk, but the return profile is entirely dependent on hotel revenue, brand compliance and the sponsor-affiliated Master Tenant’s ability to perform. The master lease shifts operating volatility into the Master Tenant, but it is not equivalent to an IHG or parent-company distribution guarantee; the Sponsor provides only a $400,000 Master Tenant demand note. The $48.20 million equity raise is 20.5% above the $40.0 million real estate purchase price before future capital needs. Forecast distributions require rising hotel cash flow while the Trust funds franchise-required PIP work and may need to fund up to $5.0 million of renewal PIP at the 2046 franchise extension.

Property Addresses

1995 Shorewood Drive, Cape Canaveral, FL 32920

Offering Documents

Download all documents (.zip)
PG Cape Canaveral DST - PPM.pdfDownloadPG Cape Canaveral DST - Brochure.pdfDownloadPG Cape Canaveral DST - Video.pdfDownload
Documents are provided by the sponsor for registered investors. Review the Private Placement Memorandum in full, including risk factors, before making any decision.

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