Peachtree Group: PG Omaha Landmark DST

Peachtree Group: PG Omaha Landmark DST

Available

Overview
Features
Income
Analysis

Overview

The Residence Inn by Marriott in Downtown Omaha represents an opportunity to invest in a well-positioned, extended-stay hotel located in the center of Omaha's primary employment, medical, academic, and cultural district Its walkable downtown location and proximity to major employers, universities, medical institutions, and event venues support consistent lodging performance across business, academic, medical, and leisure travel segments.

The property is surrounded by Omaha's most significant year-round demand drivers. It is located across from Union Pacific's national headquarters and the new Mutual of Omaha headquarters. Additional nearby corporate demand generators include Berkshire Hathaway, Kiewit Corporation, First National Bank of Omaha, Conagra Brands, and WoodmenLife, each contributing ongoing business travel from executives, consultants, auditors, project teams, and vendor partners.

Equally significant is the property's proximity to Omaha's two major academic and medical-research institutions. Creighton University, located less than a mile away, generates steady visitation from families, prospective students, faculty, academic programming, athletic events, and alumni activities. The University of Nebraska Medical Center (UNMC) - one of the region's largest employers and a nationally recognized research institution - draws medical professionals, clinical rotation participants, patient families, and research collaborators year-round.

Offering Materials

Key Investment Features

Structure

Delaware Statutory Trust (DST)

Investment Sponsor

Peachtree Group

Property Type(s)

Hospitality

Location(s)

NE

Occupancy

N/A

721 Exchange / UPREIT

None

Minimum Investment

$100,000

Investment Strategy

Buy & Hold

Year 1 Yield

5.92%

In-Place Loan

No Loan; All-Cash

Avg. Remaining Lease Term

N/A


Cash Flow Forecast

Year 1

Year 2

Year 3

Year 4

5.92%

6.08%

6.14%

6.30%

Year 5

Year 6

Year 7

Year 8

6.39%

6.55%

6.75%

6.91%

Year 9

Year 10

Sold

Sold


Investment Highlights

  • Property is located in the center of Omaha’s $9 billion redevelopment zone.

  • Property is within walking distance to most major employers, convention venues, sporting facilities, and city landmarks.

  • Hotel benefits from being marketed by Marriott and included in the Marriott rewards program.

Advantages

  • Mutual of Omaha’s new headquarters is opening across the street from the hotel.

  • Financial model uses conservative underwriting estimates, including below-average occupancy and little-to-no room rate growth.

Weaknesses

  • Cash flows distributed to investors can vary from those forecasted due to the performance of the hotel.

  • A limited-service hotel lacks the ability to grow revenue through food and beverage.