LifestyleOne LLC, our portfolio offering consisting of six luxury residences in six unique world class destinations, is the perfect second home solution for those with a sense of wanderlust, enjoying travel to a variety of destinations all while being invested in a real estate portfolio that is diversified. But it is undeniable to us, from literally hundreds and hundreds of discussions with people that considered LifestyleOne, that there is a voracious appetite for a shared luxury real estate ownership model that involves a single, remarkable residence located in their absolute favorite location. As you would expect, the variety of favorite destinations vary widely but included those coveted locations that often are cited as the top vacation destinations year after year: Hawaii, Cabo, Carmel, Lake Tahoe, Gulf Coast of Florida, Vail/Beaver Creek, Colorado, Napa/Sonoma, CA, NYC, Sea Island, GA, just to name a few.
With this benefit of meaningful insight from keenly interested vacation home buyers, we responded to this "favorite destination" appetite and created our debut product for a Single Destination LLC located in the charming and beautiful beach community of WaterColor, Florida.We formed Lifestyle 30A, LLC ( this area is often called 30A as Scenic Highway 30A runs through these beach communities), went to contract on a truly stunning $3,000,000 residence in Phase III of the luxury community called WaterColor, and offered only 8 shares in the LLC, creating a very exclusive opportunity. The 8 members of the LLC incur 12.5% of the purchase price and they meet 12.5% of the operating costs. For those who are big fans of WaterColor and 30A, this offered a smart, sensible and affordable way to own a stunning beach home in their favorite destination. And our offering resonated. we sold out in less than 8 weeks and we closed on this remarkable home on August 12th, 2016. And certainly one of the reasons they were so thrilled, in addition to the panache of this fine home, was the economic reality that their cost per night when enjoying this $3,000,000 vacation home was only $375 per night due to the innovation of our shared ownership model.
On the surface, it may sound like a fractional offering of sorts but it is not. Shares of Lifestyle 30A, LLC are a securities offering under Regulation D, Rule 506c which enabled this offering to be considered an investment product and not a fractional real estate offering. And, it is just that as the 8 members of the LLC will not only enjoy 35 to 40 nights per year with family and friends in this glorious residence, and in their favorite destination, but at the end of the term of the LLC, 8 years hence, they will receive from the sale of the home 100% of their original investment and then share equally in gains in value over the term. This exit strategy is 180 degrees different from the plight of the fractional product offering where the resale often returns just 40% of the original basis, if it sells at all.
Our next two Single Destination LLC offerings will be in Los Cabos, Mexico and in the charming beach city of Carmel, and we are in the process of choosing the very best properties in those markets in the $3,000,000-$3,500,000 price point. There are many vacation home buyers who would Cabo or Carmel as their #1 vacation destination so we are confident these offerings will sell out in 7-8 weeks as WaterColor did.
There is strong reason to believe this is a vacation home ownership product whose time has come.
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Happy Travels from Lifestyle Asset Group.