Fractional Ownership News

Lifestyle Asset Group launches new destination club model

A new fractional ownership company described as “the next generation of luxury vacation ownership” has launched in the US.

In a variation on the investment fund destination club model, Lifestyle Asset Group will allow 100 participants to collectively own debt-free 12 residences with an average value of $2.5 million for their use. With a one-time capital contribution of $300,000, each equity owner will enjoy seven years of access to the residences that are booked on a first-come, first-served basis. Equity owners have the option to transfer their interests at any time without penalties or fees.
 
As part of the Collective Asset Ownership (CAO) model, Lifestyle Asset says it operates in a debt-free environment by selling interest in legal structures, most often an LLC, as a means to create collective ownership of multiple real estate assets, thereby maximizing security.

Lifestyle Asset purchases a collection of residences on behalf of the group then serves as the management company, enabling travel and maintaining the residences for the equity owners. At the end of the LLCs’ term, Lifestyle Asset will sell the residences and share the proceeds to the equity owners, who may then exit or join another unsubscribed LLC.
 
Led by CEO Richard Keith, Lifestyle Asset Group was founded by four leading experts in the vacation real estate and luxury travel sector who have over 30 years of combined experience. “Having been a member and CEO of vacation clubs, I was able to, with my colleagues, create a unique model that uses only the best attributes that will be easy-to-use and beneficial for each of our equity owners and their families and friends,” said Keith. “Each of our properties is in a prime location that our equity owners will appreciate and want to return to over the length of the LLC.”

Equity owners have the option of joining unique regions – currently Eastern and Western – that include a mix of beach, leisure (e.g., golf), metropolitan and mountain locations. To maximize the amount of travel options and times available to equity owners, the regions are limited to 100 owners each. Lifestyle Asset claims to offer superior travel flexibility as it doesn't use fixed, rotating, or space-available systems.
 
Each equity owner receives 5,000 credits per year in exchange for $30,000 in annual maintenance costs and usage, or $6 per credit. Each night is assigned a credit value that varies by destination, property size, arrival day, and time of year. For example, a one-week stay at a four- or five-bedroom residence during New Years’ week might require 1,600 credits whereas a five-night stay in a two-bedroom property during a value season might be 160 credits. Based on this model, equity owners can average between 30 and 40 nights of vacation a year. Equity owners have the option of booking a vacation in their non-home region for a premium.

To launch this new model, however, the Founders Offer includes access to both Eastern and Western Regions without reciprocity premiums or restrictions, and a higher pro-rata distribution of proceeds upon the sale of the regional properties. This Founder’s program is very limited and is available on a first-come basis.
 
Currently available in the Eastern Region is a four-bedroom, 4,770-square-foot Antebellum mansion in Charleston, South Carolina. Located in the Old and Historic District, the restored, 200-year-old home blends historic preservation with just the right amount of modern conveniences. Owners will appreciate the 1,800 square-foot patio for outdoor dinner parties and late-night cocktails. Also available on day one is a five-bedroom, tropical residence in the Caletón Estates in Cap Cana. While staying at the Dominican Republic hideaway, owners and their families will enjoy member access to the Punta Espada Golf Club and Caletón Beach Club, with a terraced swimming pool, spa treatments, and full-service dining.
 
Two properties in the eastern region have already been purchased a 200-year old antebellum mansion in Charleston, South Carolina and a five-bedroom residence in the Dominican Republic.

Future destinations will include the Turks & Caicos; Naples, Florida; Chicago; Riviera Maya, Mexico; Miami; Vail, Colorado; New York; Palm Beach, Florida; Asheville, North Carolina; and Watercolor, Florida.
 
The Western Region includes a expansive, four-bedroom villa in Cabo San Lucas, Mexico, and the Blue Sky Lodge in Deer Valley, Utah.
 
Future destinations will include Napa Valley; Maui; Monterey Bay; Newport Beach; Punta Mita, Mexico; San Diego; San Francisco; Las Vegas; Santa Barbara and Scottsdale.

www.lifestyleassetgroup.com

25/03/11

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