Who Says You Can’t Own Paradise

Lifestyle Asset Group invites you to join with just 7 other families who will each own a 1/8th interest in this exceptional $3 million real estate investment nestled in the heart of WaterColor, Florida.

Through the same proven collective asset ownership model of the multi-destination AtlanticOne LLC, we present our first single destination investment opportunity. And it is simply astonishing — a 4,600 square foot residence boasting more than $400,000 in interior design appointments. As a shareholder of LifestyleWaterColor LLC, you and your family and friends will be entitled to enjoy 35 nights a year in this luxuriously appointed vacation home for years to come.

This LLC subscribed in 2016. Contact us for any resales that may be available.

If you’ve seriously entertained the idea of owning in WaterColor, email Karla Jones today. Additional properties are coming soon! karla.jones@lifestyleassetgroup.com.

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Sublime Location.

Just a 5 minute walk from the beach, the residence is ideally located in Phase 3 of WaterColor and directly across from the popular frog pool. Tucked between the beautiful beaches of the Emerald Coast and Western Lake, a natural 220-acre coastal lake, WaterColor is a vibrant beach resort and residential community that eases into its natural surroundings with a Southern simplicity and grace.

Sublime Luxury.

Step inside this 6 bedroom, 7 bath home and set your eyes upon $400,000 in interior design appointments including 100 year-old reclaimed, hand-scraped, white oak flooring, polished Calacatta Gold marble, exposed antique ceiling beams, and pecky cypress doors. The well-appointed kitchen showcases a Gaggenau Hausgerate Vario 400 series gas cooktop, double ovens and double combi-steam ovens, Gaggenau double-door refrigerator and freezer, Sub-Zero wine fridge, and white Poliform Italian cabinets. The attached guest house offers entrances via the main house as well as a separate entrance above the garage. Two Sonos sound systems are accessible and independently controlled throughout every room in the home. The top floor master suite spans the width of the home, with a private patio with tall slatted shutters.

The Opportunity at a Glance

$3.2 million

all cash purchase of property

$390,000

one-time capital contribution per shareholder

$18,000

annual fees per shareholder

35 nights

yearly use entitlement per shareholder

A Defined Exit Strategy with 100% of Gains Split Equally Among Shareholders

The greatest advantage of our Collective Asset Ownership model is the defined exit strategy. Unlike typical fractionals that end up trying to sell at some unknown later date at a material loss of the original purchase price, the WaterColor property will be sold at its highest value in eight years. At that time, each shareholder will receive back their capital contribution of $390,000, and then rewarded with 1/8th of the net gains of the property value during the LLC term. While there are no guarantees the value will increase, historic performance in the WaterColor area suggests an increase is a very reasonable expectation.

The Power of Compounding Appreciation

The chart to the right shows the potential growth of your 8 year term of the LLC. Even the most pessimistic projection returns your capital contribution along with an equity share that offsets your vacation costs over the 8 year period.

Appreciation Graph

2% appreciation rate for 8 years:
$3,192,771.81 property value
$399,096 share value

4% appreciation rate for 8 years:
$3,729,350.66 property value
$466,169 share value

6% appreciation rate for 8 years:
$4,343,236.00 property value
$542,904 share value

Answers To Your Important Questions

How does this WaterColor LLC work?

The Single Destination LLC is a structure that enables just eight participants to acquire shares in a Limited Liability Company offered by Lifestyle Asset Group with that LLC becoming the legal owner of the vacation home. The eight shareholders collectively hold 100% of the interests of the LLC, which is known as a “Single Purpose Entity” or SPE. In other words, the only asset in the LLC is the vacation property.

Shareholders forward a one-time capital contribution of $390,000, the funds which are used to acquire the property in all cash. Then, each shareholder only pays their prorated share of the actual operating costs and management fees, which in total is $18,000 per shareholder, per year.

Lifestyle 30-A, LLC is the legal name of the entity that will acquire, via an all- cash transaction a 6 bedroom 7 bath, 4,638 sq. foot property in Phase 3 of the WaterColor, FL community. Shareholders of the LLC will be entitled to enjoy the property for approximately 35 nights per year in a very simple reservation process where you are not assigned specific weeks. Rather, you can come and go based on availability. Shareholders can sponsor unaccompanied guests to enjoy house even when they are not able to go themselves, whether that be a friend or family member, a client or colleague, or anyone you choose.

There is a defined, eight year exit strategy, which is described below.

If it is a Limited Liability Company, how and when do the shareholders get their initial capital contribution back? What about gains in value of the property? How is that distributed?

The term of the LLC is eight years from the closing date, which mirrors the average time most people hold on to a second home. At the completion of the term, the property is sold, as a single family house, not as a fractional, and at its highest possible value. The shareholders will first receive back their original capital contribution plus an equal share of any gains in the value of the property that may have accrued over the eight years.

Unlike the painful process of trying to sell a fractional interest at some later date at a loss of 65% of your original purchase price (for example, $175,000 returning $61,000??!!), the WaterColor home will be sold at its highest value at the end of the term, with shareholders receiving first 100% of their original capital back and then share equally in the net gains of the property during the term. By way of example, if this WaterColor property is sold in mid-year 2024, eight years hence, for $3,725,000, the first distribution would be of the return of $390,000 to each shareholder and then the net gains will be shared equally by the eight shareholders, each receiving an additional $102,000 (which is net of all selling fees and costs), for a total of $466,000. All without any resale hassles, as that is all handled by Lifestyle Asset Group. This is a VERY different experience, and surely far more attractive, than the resale experience of a traditional fractional real estate interest. Obviously, there are no guarantees that there will be any increases in value over the term, but applying historic performance in the WaterColor, FL area suggests increases in value is a reasonable expectation.

It sounds a lot like a fractional real estate offering. Is it?

No, it is not and that by meticulous design and intent.

In the fractional real estate offering, there are several weaknesses in the model that create a ton of angst for fractional owners and accordingly, compelled us to do something very different. Most profoundly, there is simply no demand for the resale of a fractional real estate interest once you decide you want to sell. And as the fractional developer earned their margins on the front end of the transaction during the fractionalization process, with markups of 50% or more on the real estate’s value when originally offering the fractional interests, it is not uncommon for a fractional real estate owner to realize only 30%-35% of their original investment when they sell their share …if they can sell it all.

Although on the surface, our LLC structure is similar to a fractional offering as it does involve eight owners of a single vacation home, creating the appearance of a 1/8th interest, but any resemblance to a fractional product ends there. Shares in this WaterColor LLC are offered by Lifestyle Asset Group under Rule 506 (c) of the Securities Act, requiring each purchaser of the LLC shares to meet the definition of the SEC of being an “Accredited Investor”. The SEC defines an accredited investor as a person who is a sophisticated investor with a minimum of $1,000,000 net worth, not including the equity of their primary residence. Under Rule 506(c), Lifestyle Asset Group can only sell shares of LifestyleWaterColor to those able to demonstrate that they are Accredited Investors as defined by the SEC.

Every commercial fractional project in the United States involves multiple units that are generally identical residences with a typical fractional project offering over 20 residences with 160 or more owners. In fact, if you own an interest in a commercial fractional project, you are very likely to stay in different residences each time you go. WaterColor LLC, conversely, owns ONE stunning residence, once valued at $3.9m, that only eight shareholders call home. We have departed 180 degrees from the commercial fractional product with hundreds of owners and dozens of residences and personalized it completely. There is nothing like this innovative option anywhere within the real estate ownership market.

For more information this LLC or to get information on additional 30A offerings, please fill out the form

For more information or to reserve your share, email Karla Jones: karla.jones@lifestyleassetgroup.com