PG Savannah Industrial DST

Offering Overview

A 594,552 SF Class A bulk industrial distribution warehouse (122 Dorchester Village Rd., Midway, Liberty County, GA) on 41.40 acres within the Hinesville MSA, positioned in the Port of Savannah / I-95 Eastern Seaboard logistics corridor. The building offers 40-foot clear heights, ~5,849 SF of office, four drive-in doors, 58 dock-high loading doors and 66 dock knockouts. The asset is 100% net-leased to Hasbro, Inc. (NASDAQ: HAS; S&P BBB / Moody's Baa2) under a new ~10-year NNN lease commencing April 2026 and expiring May 31, 2036, carrying 3.25% fixed annual escalations ($7.75 to $10.34 PSF over the initial term) and two five-year fair-market renewal options; real estate taxes, insurance, and management are tenant-reimbursed, leaving the Trust's landlord obligations limited largely to structure. The Property is held debt-free through a leasehold/bond-lease arrangement with the Liberty County Industrial Authority that delivers a full ad valorem abatement (Years 1-8, partial Year 9). The thesis is durable, contractually escalating investment-grade net-lease income from a modern port-logistics distribution box over a 10-year hold.

Investment Highlights

• The asset is anchored by investment-grade single-tenant credit. Hasbro, Inc. carries S&P BBB and Moody's Baa2 ratings and uses the facility for national distribution behind an iconic brand portfolio (Monopoly, Nerf, Play-Doh). The corporate-backed lease supplies predictable, ratings-supported income with minimal operational burden on the Trust, anchoring the rent roll in rated corporate credit rather than operating cash flow.
• The site sits in one of the most strategically relevant logistics submarkets in the Southeast. Proximity to the Port of Savannah—among the fastest-growing U.S. container ports—and direct I-95 Eastern Seaboard access support tenant demand for modern bulk distribution. The building's functional specifications (40-foot clear height, 58 dock doors plus 66 knockouts, deep truck courts) align with current big-box logistics requirements and underpin re-leasing economics in a port-driven absorption market.
• Contractual income growth is above the net-lease norm. The lease embeds 3.25% fixed annual escalators—exceeding the 2.0%-2.5% typical of comparable single-tenant NNN structures—compounding base rent from $7.75 to $10.34 PSF across the initial term. Because taxes, insurance, and management are reimbursed by the tenant, the escalator flows to the Trust with limited expense leakage, providing a measure of inflation defense over the hold.
• The debt-free capital structure removes financing risk in its entirety. With no mortgage encumbering the Property, the offering carries no refinance, maturity, rate-cap, or foreclosure exposure, and it eliminates the equal-or-greater-debt replacement requirement for 1031 investors seeking to avoid boot. The structural trade-off is the absence of positive financial leverage, which mechanically caps levered return and is the primary reason the going-in distribution sits in the 5% range.
• A bond-lease abatement enhances near-term net economics. Legal title is held by the Liberty County Industrial Authority, with the Trust owning a leasehold and a taxable revenue bond; the structure delivers a full real estate tax exemption through Year 8 (partial in Year 9), and the Trust holds an option—becoming an obligation at bond maturity (March 1, 2034)—to acquire the fee for a nominal amount. The abatement improves the tenant's total occupancy cost and supports leasing competitiveness during the primary term.

Forecasted Cash Flow

Projected annual cash-on-cash distributions with the corresponding tax-equivalent yield over the hold, based on the sponsor’s underwriting assumptions.

Illustrative projections only — targeted distributions are not guaranteed and actual results will vary. Tax-equivalent yield assumes depreciation shelter of distributed income.

Analyst Notes

The offering reads as a defensive, income-oriented net-lease DST with bond-like, contractually escalating cash flow and a debt-free balance sheet that strips out financing risk. The risk-adjusted profile is strong on credit (BBB/Baa2) and structure but concentrated on a single tenant whose Year-8 break option is the dominant underwriting variable: feasibility of the 5.00% to 5.86% schedule hinges on Hasbro not exercising early termination and on residual pricing at a 2034-2036 exit, when the lease will be short-dated and the abatement will have rolled off. The Savannah port-logistics tailwind and modern building specifications support re-leasing economics, while the hospitality-centric sponsor and leasehold/bond-lease mechanics add execution nuance not present in a fee-simple, fixed-escalator structure. The unlevered 5.35% average yield reflects both the absence of positive leverage and the ~14.5% premium of offering size to the $78,250,000 property purchase price.

Financing

This offering is unleveraged — the DST holds its assets debt-free (0% loan-to-value), so no mortgage financing applies.

Benchmark Comparison

Benchmark reflects the average of comparable Industrial offerings. Differences are relative to the benchmark.

Offering Documents

Offering Documents Available By Request

About the Sponsor

Peachtree Group

Peachtree Group is an Atlanta vertically integrated investment manager with more than $2.5 billion in equity under management and over $9 billion in asset value, anchored in deep hospitality expertise across 48-plus hotels and extended into CRE lending, CPACE financing and, since 2022, a debt-free DST platform. Ranked a top-15 DST sponsor in 2024 on the strength of seven all-cash DST acquisitions, and complemented by EB-5 and QOZ programs, Peachtree brings unusual capital-markets breadth—equity, credit and tax-advantaged structures—to the exchange channel. The hospitality depth and lending arm differentiate it from pure-play property sponsors.