In 1979, Lusztig proposed a cohomological construction of supercuspidal representations of reductive p-adic groups, analogous to Deligne-Lusztig theory for finite reductive groups. In this paper we establish a new instance of Lusztig's program. Precisely, let X be the p-adic Deligne-Lusztig ind-scheme associated to a division algebra D of invariant k/n over a non-Archimedean local field K. We study the D × -representations H•(X) by establishing a Deligne-Lusztig theory for families of finite unipotent groups that arise as subquotients of D × . There is a natural correspondence between quasi-characters of the (multiplicative group of the) unramified degree-n extension of K and representations of D × given by θ → H•(X) [θ]. For a broad class of characters θ, we show that the representation H•(X)[θ] is irreducible and concentrated in a single degree. Moreover, we show that this correspondence matches the bijection given by local Langlands and Jacquet-Langlands. As a corollary, we obtain a geometric realization of Jacquet-Langlands transfers between representations of division algebras.