Peachtree Group Fully Subscribes $91.5M Savannah Industrial DST Anchored by Hasbro Distribution Center

Peachtree Group has fully subscribed the PG Savannah Industrial DST, a $91.5 million Delaware Statutory Trust offering anchored by a newly built, approximately 600,000-square-foot distribution center leased to Hasbro, Inc. in Midway, Georgia, the firm announced. The offering closed in early September 2026 and was structured as a debt-free acquisition targeting 1031 exchange investors.

Asset and Lease Structure

The property, located at 1122 Dorchester Village Road in Midway, sits in Liberty County approximately 30 minutes from Savannah. The single-story warehouse spans roughly 594,552 square feet on a 41.40-acre site and is 100% leased to Hasbro, serving as a key distribution hub in the toy maker's U.S. logistics network. The facility accounts for approximately 25% of Hasbro's U.S. distribution footprint, supporting both brick-and-mortar retail partners and direct-to-consumer operations.

The lease carries a 10-year initial term running through May 30, 2036, with two five-year extension options at fair market value. Annual rent escalations are set at 3.25%, and the structure places operating expense responsibilities on the tenant, limiting landlord obligations. Hasbro's investment-grade credit rating underpins the income profile of the asset.

The offering was capitalized entirely with equity — no mortgage debt was placed at the DST level — a structure Peachtree has used across several of its DST acquisitions to reduce risk for 1031 exchange investors seeking stable, long-duration income.

Executives Cite Investor Demand for Durable Income

"The full subscription of this offering demonstrates the continued demand we see for high-quality real estate with durable income and conservative capital structures," said Greg Friedman, managing principal and CEO of Peachtree. "Investors continue to look for opportunities that can provide stability, tax efficiency and attractive long-term fundamentals, and we believe this property brought those characteristics together in a compelling way."

Tim Witt, president of 1031 Exchange and DST Products at Peachtree, said the result reflects both asset quality and the strength of the firm's DST platform. "Reaching full subscription reflects both the quality of this asset and the strength of investor interest in our DST platform," Witt said. "Our focus is on identifying properties with strong real estate fundamentals, predictable income and structures designed to meet the needs of 1031 exchange investors. Savannah is a strong example of that strategy."

Peachtree's DST Platform Continues to Expand

Peachtree launched its DST program in 2022 and has since grown the platform to more than $525 million in completed offerings across industrial and hospitality assets. The firm ranked 14th among nearly 70 DST sponsors in 2025, with six debt-free DST acquisitions totaling approximately $200 million that year and roughly 12 DST acquisitions totaling approximately $375 million since inception.

Most recently, Peachtree added two offerings to the platform: PG Cape Canaveral DST, anchored by the 150-room Holiday Inn Express Cape Canaveral in Florida, and PG St. Louis Industrial DST, a newly constructed Class A industrial facility leased to Cummins Inc. The Savannah offering joins those as part of the firm's strategy of providing 1031 exchange investors access to institutional-quality real estate with professional management.

Peachtree manages approximately $16.6 billion in real estate asset value and $11.0 billion in committed capital, with a broader platform that spans commercial real estate credit, hospitality, and DST products. The firm reports 29 full-cycle programs with an average equity multiple of 2.15x and an average annual return of approximately 30.9% over roughly 5.1-year hold periods.

Market Context: Industrial DSTs in a Shifting Landscape

The full subscription of the PG Savannah Industrial DST comes as broader industrial real estate fundamentals have softened and cap rates have expanded nationally. Against that backdrop, the closing points to sustained investor appetite for debt-free, single-tenant industrial product backed by investment-grade credit in core logistics corridors — characteristics the Savannah market, anchored by one of the busiest container ports on the East Coast, has consistently offered.

The Hasbro facility's position within the Savannah corridor — handling roughly a quarter of the company's U.S. distribution volume — underscores the strategic importance of the asset to its tenant and, by extension, its appeal to income-focused investors.

Sources

Peachtree Group – PG Savannah Industrial DST Full Subscription Announcement