NexPoint Launches $27.9M Offering in Utah, Its First Hospitality-Focused DST
Alternative investment firm NexPoint announced the launch of NexPoint Lodging I DST, an approximately $27.9 million Delaware statutory trust offering for the Residence Inn located in the West Jordan area of Salt Lake City.
NexPoint partnered with PEG Companies’ in-house hospitality management group, PEG Hospitality Group, which will operate and manage the hotel on the property. PEG was founded in 2003 and has significant experience in the Salt Lake City metro, managing a more than 3,000-key portfolio in the region and having more than $2 billion in assets under management.
The new offering, which represents NexPoint’s first dedicated hospitality DST vehicle, allows investors to access the hospitality retail sector in a way that offers potential tax advantages, particularly those looking to complete 1031 exchanges. It requires a minimum investment of $100,000.
NexPoint has significant experience in the DST space, launching and fully subscribing offerings in the niche sub-sectors of self-storage; small bay, i.e., light industrial; life sciences; multifamily; and now, hospitality. By offering access to these sub-sectors of commercial real estate, NexPoint grants its investors the ability to capitalize on meaningful growth and demand for specialized commercial real estate.
The property is located in West Jordan, Utah, a suburb within the fast-growing Salt Lake City metropolitan statistical area that benefits from a diverse economy supported by retail, manufacturing, healthcare, and education. According to NexPoint, the strategic location near major transportation routes and proximity to Salt Lake City enhances its appeal to technology firms and industrial operators alike. These factors, combined with access to outdoor recreation and a robust infrastructure network, contribute to a favorable outlook for the property.
“We view this as a strategic step in broadening our alternative investment platform within the lodging space,” said Matthew McGraner, chief investment officer at NexPoint. “Our partnership with PEG reflects our focus on aligning with experienced teams that bring operational strength.”
Earlier this year, NexPoint fully subscribed Small Bay II DST, an offering comprised of two small bay industrial properties in Orlando, Fla. The offering reached its total goal of $38.8 million in equity raised following its July 2024 launch. The two properties included in that DST are The Lakefront Property, which offers 192,767 square feet of flex and multi-tenant industrial space across four buildings, and The Belle Property, a 186,162 square-foot property comprised of 13 recently renovated small bay industrial buildings.
NexPoint is a multibillion-dollar alternative investment firm comprised of a group of investment advisers and sponsors, a broker-dealer, and a suite of related investment vehicles.
Click here to visit the AltsWire directory page.
