PG Savannah Industrial DST Overview
PG Savannah Industrial DST is a Delaware statutory trust offering, sponsored by Peachtree Group, that gives accredited investors fractional beneficial ownership of a single, newly constructed Class-A industrial distribution facility located at 122 Dorchester Village Road in Midway, Georgia (Liberty County), within the greater Savannah market. The Trust is offering up to $91,509,083 of beneficial interests, representing 100% of the interests in the Trust, with a minimum investment of $100,000 for both Section 1031 exchange investors and cash investors. The property is a 2024-built, 594,552-square-foot cross-docked warehouse situated on approximately 41.40 acres, featuring 40-foot clear heights, a 520-foot building depth, and 447 parking spaces (259 trailer and 188 automobile). As of acquisition it is 100% leased to Hasbro, Inc. (NASDAQ: HAS), an investment-grade tenant (S&P BBB; Moody's Baa2) under a long-term net lease running from April 1, 2026 through May 31, 2036, with 3.25% annual rent escalations and two five-year renewal options. The Trust acquired the property on March 6, 2026 for a purchase price of $78,250,000, free and clear without a mortgage, making this an all-cash, debt-free DST at the property level. The offering is designed for investors seeking to defer capital gains through a Section 1031 exchange while owning a passive, professionally managed, credit-tenant industrial asset positioned to benefit from the Port of Savannah's continued growth. Peachtree Group affiliates serve as Asset Manager, Property Manager, Depositor, and Managing Broker-Dealer. Interests are sold under Rule 506(c) of Regulation D to accredited investors only; non-U.S. investors and tax-exempt entities are excluded. Because it is a passive, illiquid, single-asset holding with no investor control, the offering suits long-horizon 1031 exchangers who want current income potential, a hands-off structure, and the capacity to bear an indefinite hold and the risk of total loss of capital.
Highlights
The property sits in the Savannah industrial market, anchored by the Port of Savannah, the fourth-largest container gateway in the United States, which is undergoing a multi-billion-dollar expansion designed to increase capacity through 2035, reinforcing Savannah's role as a long-term logistics hub. The site has immediate access to Interstate 95, connecting it to major Southeast and Mid-Atlantic distribution markets, and is proximate to Savannah/Hilton Head International Airport and less than two hours from the Port of Jacksonville, Florida, a top-10 U.S. container port. Savannah has emerged as a premier East Coast distribution hub, driven by sustained port growth, expanding transportation infrastructure, and demand from large-scale logistics and e-commerce users, with the market posting positive net absorption through 2025 and demand concentrated in modern, Class-A facilities. The Liberty County submarket is characterized in the PPM as a higher-tier submarket with above-market rental rates, positioning the property within a growth-oriented logistics corridor.
The property is an institutional-quality, newly constructed (2024) Class-A distribution facility totaling 594,552 rentable square feet on 41.40 acres, engineered for high-throughput logistics with a cross-dock configuration, a 520-foot building depth, 40-foot clear heights, 259 trailer parking spaces, and 188 automobile spaces. It is 100% leased to Hasbro, Inc. (NASDAQ: HAS), a Rhode Island-based global toy and entertainment company founded in 1923 with fiscal 2025 revenues of approximately $4.7 billion, a market capitalization near $13 billion, roughly 5,500 employees, and an investment-grade credit profile (S&P BBB; Moody's Baa2). Hasbro's portfolio of iconic brands, including Transformers, Monopoly, Nerf, Play-Doh, Peppa Pig, Magic: The Gathering, and Dungeons & Dragons, underpins the durability of its distribution operations. The building's scale, modern specifications, and single-tenant credit backing are intended to support stable, predictable income and long-term asset relevance within a high-demand distribution market.
A defining feature of this offering is that the property was acquired entirely free and clear, without any mortgage financing (the Trust acquired the Property free and clear without utilization of a mortgage). This makes PG Savannah Industrial DST an all-cash, debt-free investment at the property level with an effective loan-to-value of 0%, eliminating the refinancing risk, balloon-maturity risk, and lender-driven cash-flow sweeps that accompany leveraged DSTs. The $91,509,083 offering represents 100% equity. To bridge the closing ahead of investor subscriptions, the Depositor (a Sponsor affiliate) funded the acquisition using Bridge Capital provided by Ameris Bank and a Sponsor Loan; critically, the Depositor, not the Trust, is the borrower, and no investor is allocated any portion of that liability. The Bridge Capital and Sponsor Loan are repaid from offering proceeds as interests are sold. A separate $55,000,000 bond exists solely as part of the bond-financed sale-leaseback tax-abatement structure rather than as leverage on investors' equity. The Trust also funds a $1,075,000 initial reserve with scheduled annual contributions.
The sponsor is Peachtree Group, a privately held real estate investment firm founded in 2007 that finances, owns, operates, manages, and develops real estate assets across the United States. According to the PPM, since inception Peachtree Group and its affiliates have invested more than $4.7 billion across over 824 real estate acquisitions and structured financings with an aggregate transaction value of approximately $15 billion, and have realized more than 504 of those investments through multiple market cycles. The firm currently manages equity and debt investments with a net asset value of $4.7 billion and total asset value of roughly $15 billion across hospitality, commercial lending, residential development, and capital markets divisions. The management team, led by Chief Executive Officer Gregory Friedman, Chief Investment and Financial Officer Jatin Desai, Mitul Patel, general counsel Kevin Cadin, Brian Waldman, Daniel Siegel, and Lee Shuman, brings decades of investment, financing, and asset-management experience. Peachtree affiliates serve in aligned roles as Asset Manager (Peachtree Hotel Group II, LLC), Property Manager, Depositor, and Managing Broker-Dealer (Peachtree PC Investors, LLC).
The offering is designed to qualify as replacement property for investors completing a Section 1031 like-kind exchange, allowing deferral of capital gains and depreciation-recapture taxes on relinquished property; special tax counsel has provided an opinion (Exhibit C) that an investor's acquisition of interests should be treated as a direct interest in real property for Section 1031 purposes. Beyond exchange deferral, the property carries a distinctive property-tax benefit: through a bond-financed sale-leaseback with the Liberty County Industrial Authority, title is held in a structure that exempts the asset from ad valorem property taxes, with payments in lieu of taxes (PILOTs) set at 0% for the first ten years, a 100% property-tax savings during that period that enhances net cash flow. As a passive DST, distributions are generally treated as rental income, and investors receive depreciation deductions that can shelter a portion of that income. On exit, the Administrative Trustee may sell the property, at which point investors may again defer gains by rolling proceeds into another Section 1031 exchange. Note the offering does not include a Section 721/UPREIT roll-up option; the anticipated liquidity event is a sale of the single asset.
Analysis of PG Savannah Industrial DST
Insights
PG Savannah Industrial DST is best understood as a debt-free, credit-tenant, single-asset industrial exchange vehicle, a comparatively conservative profile within the DST universe because there is no mortgage and therefore no refinancing or balloon risk, but one whose return is essentially a bond-like coupon from a single investment-grade lease rather than a diversified or value-add strategy. For a 1031 exchanger, the fit is strongest for an investor who prioritizes capital preservation and predictable income over upside, is comfortable with an approximately ten-year horizon aligned to the lease (through May 31, 2036), and can tolerate illiquidity and the risk of total loss. The risk/return math hinges on three variables. First, the load spread: the offering is $91,509,083 while the underlying real estate cost $78,250,000, and syndication costs run 9.50% plus a $2,347,500 acquisition fee, so on day one investor equity is marked well above property value, and the in-place base rent (about $4.6 million annualized, roughly 5.9% of the $78.25 million price but closer to about 5.0% of the offering) must grow via the 3.25% escalations while the property appreciates for investors to be made whole on a sale. Second, the exit cap rate: the PPM cites a Liberty County market cap rate near 7.4% and submarket pricing around $87/SF, versus an acquisition basis near $131.6/SF for this Class-A asset, a wide gap that reflects a new-construction and credit-tenant premium but also means a future buyer applying market cap rates could value the asset below investors' cost, especially if the remaining lease term has shortened. Third, tenant behavior against assumptions: everything depends on Hasbro remaining in place; the March 31, 2033 early-termination option (fee about $7.69 million) and the elevated submarket vacancy (16.10% market / 34.10% submarket, with absorption trailing construction) are the key items to watch, because a single-tenant box that goes dark in a soft submarket is difficult to backfill. What to watch over the hold: whether occupancy and renewal track the Financial Forecast (Exhibit E), whether the 0% PILOT abatement persists as structured for the full ten years, the pace of new supply in the Savannah/Liberty County corridor, and any move by Hasbro toward its termination right. Comparison context: relative to leveraged DSTs, this trades some headline yield for lower risk and no debt; relative to diversified net-lease DSTs such as multi-property essential-retail portfolios, it concedes diversification for a stronger single credit and a modern logistics asset tied to the growing Port of Savannah. Two structural caveats round out the picture: the sponsor's demonstrated track record is concentrated in hospitality rather than single-tenant industrial, and the bond-financed sale-leaseback, while delivering the tax abatement, could complicate or delay a future sale. On balance this is an income-and-deferral play for a conservative exchanger, not a growth vehicle, and its success is gated by Hasbro's tenancy and by exit-pricing discipline given the going-in basis.
Advantages
Advantages specific to this offering: (1) Debt-free structure. The property was acquired free and clear with no mortgage, so investors bear no refinancing, balloon-maturity, or lender-foreclosure risk, and 100% of the $91,509,083 offering is equity. (2) Investment-grade, single-tenant credit. The asset is 100% leased to Hasbro, Inc. (NASDAQ: HAS), rated BBB by S&P and Baa2 by Moody's, a nationally recognized company founded in 1923 with roughly $4.7 billion in fiscal 2025 revenue. (3) Long-term net lease with built-in growth. The lease runs through May 31, 2036 with fixed 3.25% annual escalations (base rent rising from $7.75/SF to $10.67/SF) and two five-year renewal options, providing predictable, growing income under an essentially net/bond lease in which the tenant bears taxes, insurance, utilities, and most maintenance. (4) Meaningful property-tax abatement. PILOTs at 0% for the first ten years deliver a 100% property-tax savings that supports net cash flow. (5) Modern, functional real estate. A 2024-built, 594,552 SF Class-A cross-dock facility with 40-foot clear heights and ample trailer parking, well-specified for contemporary logistics users. (6) Strong logistics location. Anchored by the Port of Savannah (the fourth-largest U.S. container gateway) with a multi-billion-dollar expansion through 2035, immediate I-95 access, and proximity to the Jacksonville port. (7) Experienced, aligned sponsor. Peachtree Group reports more than $4.7 billion invested across 824-plus acquisitions and $15 billion in transaction value, and its affiliates manage every layer of the deal. (8) Full 1031 eligibility. The structure and tax opinion are designed to let exchangers defer gains, receive passive rental income and depreciation, and 1031 again on a future sale.
Concerns
Honest, PPM-sourced risks: (1) Single-asset, single-tenant concentration. The Trust owns only this one property leased entirely to Hasbro; the PPM states the investment is not diversified as to the type of asset, type of tenant, or geographic location, and all income depends on one tenant's performance. (2) Tenant and early-termination risk. Hasbro has a one-time option to terminate at the end of the seventh lease year (March 31, 2033); although a termination fee projected at $7,689,759.38 applies, an exit would leave a large box to re-lease, and a single-tenant property is either 100% occupied or 100% vacant. (3) Weak submarket fundamentals. The PPM's own market data show elevated vacancy (roughly 16.10% market-wide and 34.10% at the submarket level), absorption that has trailed construction over the past three years, and roughly 40 million SF delivered in the market, all of which could impair re-leasing or resale. (4) Valuation and load spread. The $91,509,083 offering exceeds the $78,250,000 property price; syndication costs total 9.50% ($8,693,363), plus a $2,347,500 acquisition fee, so investors pay a premium over real estate value and the property must appreciate for investors to recover their full investment. (5) Illiquidity. There is no public market for the interests, transfer is restricted, and investors must be able to hold for an indefinite period and bear a total loss. (6) No control. Investors have no voting rights or management authority; the Administrative Trustee controls sale timing and broker selection, and DST no-action rules prevent re-leasing, refinancing, or capital improvements. (7) Reliance on the sponsor and conflicts. Peachtree affiliates set fees in non-arm's-length agreements and serve in multiple roles, and the sponsor's core track record is in hospitality rather than single-tenant industrial. (8) Bond-lease complexity. The property is subject to a bond-financed sale-leaseback that the PPM warns may cause a delay in the sale of the property. (9) Bridge Capital risk. If the Depositor cannot repay the Bridge Capital, the provider may own and sell unsold interests for less than investors paid. (10) Tax risk. 1031 qualification depends on assumptions in the tax opinion, distributions may be supported in part by reserves, and adverse law changes (including uncertain implications of the One Big Beautiful Bill Act) could affect outcomes.
PG Savannah Industrial DST — Complete Offering Data
Offering & Structure
Investment NamePG Savannah Industrial DST
SponsorPeachtree Group
StructureDelaware Statutory Trust (DST)
Offering Type506(c)
StatusClosed
Last Updated2026-08-05
Size & Availability
Total Offering$91,509,083
Equity$91,509,083
DebtAll-Cash
Available Equity$0 (0% of equity)
Minimum Investment$100,000
Total Load13.31%
Initial Reserves1.17%
Property
Property TypeIndustrial
StrategyCore
LocationGA
Market TierTier 3
Income & Projections
Average Yield5.35%
Projected Yields (Y1–Y10)Y1 5.00% · Y2 5.07% · Y3 5.10% · Y4 5.16% · Y5 5.23% · Y6 5.36% · Y7 5.44% · Y8 5.58% · Y9 5.70% · Y10 5.86%
Tax-Adjusted Yield11.84%
Cap Rate Equivalent7.60%
Year 1 NOI$3,815,042
Y1 Payout Ratio0.83
Financing
In-Place LTV0.00% LTV
Exit
Estimated Hold Period10 years
721 Exchange ExitNone
Benchmarks (vs sector median)
Avg. Income5.35% vs 5.33% market — Meets Average
Growth17.20% vs 15.09% market — Above Average
Peak5.86% vs 5.80% market — Meets Average
Every data point Baker 1031 tracks for this offering, in one place. Figures are drawn from the offering’s private placement memorandum and sponsor materials unless noted, are summaries for convenience only, and are qualified in their entirety by the PPM. Tap the ⓘ icon next to any label for what it means and how it is calculated.
