PG Manchester Industrial is a debt-free, single-tenant DST owning a 50,985 SF, 2024-built Tesla service center adjacent to Manchester-Boston Regional Airport in Londonderry, NH - one of only two Tesla service centers in the state. The property is 100% leased to Tesla (BBB/Baa3) under a 15-year triple-net lease running through March 2040 with 3% annual escalations and five renewal options, acquired in December 2025 for $23.5M free and clear. The thesis is an income-oriented net-lease hold of investment-grade-tenant credit with contractual escalation over a ~10-year hold.
32 acres immediately adjacent to Manchester-Boston Regional Airport in the Manchester-Nashua metro. The building is a latest-generation, ground-up Tesla service center (~32,236 SF service area, 7,199 SF parts/storage, 11,550 SF showroom/lounge), one of only two Tesla service centers in New Hampshire. It is 100% leased to Tesla, Inc.
(NASDAQ: TSLA; rated BBB by S&P and Baa3 by Moody's) under a 15-year triple-net lease that began February 2025 and runs through March 2040, carrying 3% annual rent escalations, minimal landlord obligations, and five 5-year FMV renewal options. 41M of in-place NOI. Sponsored by Peachtree Group and managed by an affiliate, the thesis is a debt-free, income-oriented net-lease hold of investment-grade-tenant credit with contractual escalation, targeting disposition within approximately ten years.
The properties are held free and clear with no mortgage, eliminating refinancing, maturity, rate-cap, and lender-foreclosure risk and removing the equal-or-greater-debt replacement requirement for 1031 investors. The structural trade-off is the absence of positive leverage.
The Property is 100% leased to Tesla, Inc., an investment-grade-rated tenant (BBB/Baa3) with a market capitalization exceeding $1 trillion, on a long-dated lease running through March 2040, delivering durable, corporate-backed contractual income. The qualification is that the rating reflects Tesla consolidated balance sheet rather than the specific facility, and the lease concentrates 100% of Trust income in a single tenant whose automotive and energy businesses carry above-average earnings volatility and competitive risk.
The 15-year triple-net lease passes operating expenses (real estate taxes, insurance, management) through to Tesla, insulating Trust cash flow from expense inflation, and embeds fixed 3% annual escalations that drive the cash-on-cash from 5.03% to 5.72% over the hold. Five 5-year renewal options extend the potential income runway; however, renewal rent is set at fair market value rather than a predetermined rate, so post-2040 economics are uncertain and the fixed in-term escalators cap upside if market rents rise faster.
The asset is a 2024-vintage, ground-up prototype service center purpose-built for Tesla, a meaningful quality upgrade over the converted older buildings Tesla uses elsewhere in the region, minimizing near-term capital needs and signaling Tesla operational commitment to the site. The counterpoint is that a highly specialized service and showroom configuration has limited alternative-use flexibility, raising re-tenanting cost and downtime risk should Tesla ever vacate.
The site sits immediately adjacent to Manchester-Boston Regional Airport within the Manchester-Nashua metro (~427,000 residents) at the northern edge of the Northeast megalopolis, providing regional service coverage across southern New Hampshire and northern Massachusetts and benefiting from New Hampshire absence of state income and sales tax (including on vehicle purchases). The location supports Tesla regional throughput and customer draw, reinforcing the strategic rationale for the tenant long-term presence.
The Property was acquired free and clear with no mortgage and is capitalized entirely with equity, eliminating refinancing, maturity, rate-cap and foreclosure risk and removing the equal-or-greater-debt replacement requirement for 1031 investors seeking an unlevered, predictable income stream. The structural cost is the absence of positive leverage, which caps the levered return and is the primary reason the ~5.33% average cash-on-cash sits below comparably-levered net-lease offerings.
The offering provides a clean, debt-free path to long-dated, investment-grade net-lease income: a 100%-leased, 2024-built single-tenant facility on a 15-year triple-net lease to Tesla (BBB/Baa3) running through 2040, with 3% annual escalations, expense pass-throughs, and minimal landlord obligations producing a steadily rising 5.03%-to-5.72% distribution. The all-equity structure removes financing, refinancing and maturity risk and offers 1031 investors a simple, unlevered basis, while the strategically located, airport-adjacent site in the no-income-tax Manchester-Nashua market supports the tenant regional operations. The Sponsor, Peachtree Group, is an established real estate platform (founded 2007; ~$4.4B equity invested across a $13.9B cost basis) providing institutional acquisition and management.
Income is entirely concentrated in a single tenant in a single 50,985 SF building, so a Tesla default, non-renewal at the 2040 expiry, or early vacate would eliminate Trust cash flow, a binary credit and occupancy exposure not diversified across tenants, assets, or markets. The improvements are a specialized Tesla build-to-suit (service bays, showroom, EV workflow) with limited alternative-use flexibility, and the in-place rent of ~$27.75/SF sits far above the ~$11.51/SF market asking rent for area industrial space, so any re-leasing as generic industrial product would imply a steep rent reset and significant re-tenanting cost and downtime. Tesla investment-grade rating reflects its consolidated parent rather than the site, and the company carries above-average automotive and energy demand, competitive, and key-person volatility. Returns are modest and unlevered (~5.33% average), with upside capped by fixed 3% escalators during the term and uncertain FMV-based renewal economics thereafter, and the structure carries affiliate fee load (3% acquisition fee, 3% disposition fee, affiliated property manager) plus reliance on successful syndication to redeem the Ameris Bank bridge capital and Sponsor Loan used at acquisition. The Sponsor core track record is concentrated in hospitality and CRE lending rather than single-tenant net-lease industrial.
The analysis below is Baker 1031's educational opinion — not investment, tax, or legal advice, a recommendation, or a guarantee, and it does not replace the offering's Private Placement Memorandum (PPM), which governs in all respects. Read the PPM and consult your own CPA and attorney before investing.
This is a defensive, income-first, unlevered net-lease allocation whose return profile is almost entirely a function of Tesla tenancy and the contractual 3% escalation schedule rather than any operational or financial value-creation. The debt-free structure is the offering defining strength, no refinancing or rate exposure and a predictable 5.03%-to-5.72% distribution, and its defining limitation, since the absence of leverage holds the average cash-on-cash near 5.33% and makes total return highly dependent on the terminal value at a ~10-year sale into an uncertain 2035 market with roughly five years of remaining lease term. The central risk is the gap between contractual and intrinsic value: in-place rent runs well above generic market industrial rent, so the asset worth is underwritten to Tesla specific occupancy and credit, and a vacancy would expose a specialized, single-purpose building to a steep mark-to-market. For investors prioritizing certainty of monthly income from an investment-grade tenant over growth or leverage the structure is coherent; the single-tenant and single-asset concentration, specialized improvements, FMV renewal uncertainty, and affiliate fee load are the idiosyncratic items least reflected in the headline distribution rate.
The analysis below is Baker 1031's educational opinion — not investment, tax, or legal advice, a recommendation, or a guarantee, and it does not replace the offering's Private Placement Memorandum (PPM), which governs in all respects. Read the PPM and consult your own CPA and attorney before investing.
| Metric | This Offering | Market Avg. | Assessment |
|---|---|---|---|
| Avg. Income | 5.33% | 5.39% | Meets Average |
| Income Growth | 13.72% | 13.50% | Meets Average |
| Peak Income | 5.72% | 5.84% | Meets Average |
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.
Learn More About Peachtree Group →Documents for this offering. Available to signed-in investors.
Securities offered through Aurora Securities, Inc. (CRD #46147 / SEC #8-51322), member FINRA / SIPC; Baker 1031 Investments, LLC is independent of Aurora Securities, Inc. and is not a registered broker-dealer or investment adviser. This is not an offer to sell or a solicitation of an offer to buy any security; any offer is made solely by the confidential private placement memorandum (PPM), which qualifies all information herein in its entirety. Delaware Statutory Trust interests are speculative, illiquid securities offered under Rule 506(c) of Regulation D and sold only to investors whose accredited-investor status has been verified; offering documents and subscription materials are provided only after that verification. They involve substantial risk, including possible loss of the entire investment.
Distributions, yields, the cap-rate equivalent, DSCR, occupancy, and benchmark figures are sponsor estimates or projections, are not guaranteed, and may differ materially from actual results. Any tax-adjusted yield assumes a 40% effective rate for non-1031 cash investors and is not tax advice. No tax, legal, or investment advice is provided — consult your own CPA and attorney. Past performance does not guarantee future results.