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.
If you’ve seriously entertained the idea of owning in WaterColor, email Karla Jones today. Additional properties are coming soon! firstname.lastname@example.org.
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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.
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.
all cash purchase of property
one-time capital contribution per shareholder
annual fees per shareholder
yearly use entitlement per shareholder
cost per night of use
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 $387,000, 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 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.
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
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 $15,000 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.
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 $387,000 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.
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.
The other glaring weakness, if not outright annoyance, of a fractional real estate product is the cumbersome, complicated and very structured reservation process. This is a necessary evil when there are 200 owners and 25 villas! But as one of only eight shareholders of WaterColor LLC, each shareholder chooses weeks that are important to them for the year ahead, in a process where shareholder #1 (by order of Reservation Agreement Deposits received) chooses their week first and shareholder #8 chooses 8th , with the second week chosen is in the reverse in order -- where shareholder #8 chooses their second week first and shareholder #1 selects in the 8th position. After these 16 weeks are selected, shareholders can use make additional reservations but can do so at their leisure and in real time as the year progresses. Each shareholder will have access to the WaterColor home for around 35 nights per year (17 nights if a half shareholder in the LLC).
All eight shareholders will pay $3,750 per quarter for a total of $15,000 per year. This covers all operating expenses associated with home ownership: property taxes, insurance, utilities, homeowner association fees, miscellaneous repairs and maintenance, tax return filings for the LLC, etc.
The annual cost also covers all compensation for Lifestyle Asset Group's 24/7 efforts in supporting the shareholders with management, accounting services, reviewing and approving all invoices by the various providers and trades and remitting payment, actively managing the reservation request process and working to refill cancellations by shareholders that cannot travel the dates they reserved and more. Our mission is to ensure that “every moment of vacation is spent on vacation” and that there are no demands on the shareholders for the endless work that comes with owning a vacation home hundreds or even thousands of miles from home.
With easy access to this beach house for around 35 nights per year and total annual costs of $15,000 for ownership in a nearly $3,000,000 house, the cost per night is only $428, which is less than the cost of a single 375 square foot hotel room at the WaterColor Inn nearby. THAT is the undeniable magic of this Single Destination LLC innovation of Lifestyle Asset Group. The advantage of our “Collective Asset Ownership” model becomes quite obvious when considering the important measurement of cost per night. And to the degree that the property increases in value over the term, those increases help, if not 100% offset the annual costs during the term, potentially reducing these expenses in a material way. Applying the historically increase in value of a high end property in the Phase 3 WaterColor community, which is around 4% per year, it is possible the actual net cost per night for a stunning $3m, 6 bedrooms, 7 bath house could be absolutely free. Should that be the actual outcome and it is certainly credible, there will be eight very happy shareholders, come the end of the term.
Yes, you can. And it adds tremendous additional value to the shareholders of WaterColor LLC. Bottom line: between the owned assets of LifestyleOne, LLC, which is WaterColor’s sister LLC and the locations within Elite Alliance, the leading exchange service provider for luxury private residence clubs around the globe, you can exchange your WaterColor weeks for travel to over 70 coveted destinations.
To learn more about the four and five star properties of Elite Alliance, visit www.elitealliance.com.
Yes, there are. WaterColor will admit 8 “full equivalent” shareholders to the LLC and shares are offered by Lifestyle Asset Group at the full share and half share level. So if your time at WaterColor is likely to be only 15-18 nights a year, the half share interest is perfect. And the economics are very simple: 50% of the full share purchase price and 50% of the full share annual costs.
No debt is permitted within the LLC. In addition to not wanting a bank as a lien holder, an all-cash deal eliminates the cost of debt service as that would sharply increase the annual costs.
The math in the original capitalization of WaterColor works as follows:
Getting involved is easy and requires the following steps only:
That’s it. No surprises, no risks, no pressure.
To learn about additional 30A offerings, contact us today.
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For more information or to reserve your share, email Karla Jones: email@example.com