Lifestyle Asset Group Launches a New Luxury Residence Collection
Lifestyle Asset Group, a new fractional ownership company, described as the "next generation of luxury vacation ownership," has launched.
This group has created a novel hybrid residence collection, based on the investment fund/equity-based club model. Lifestyle Asset Group allows 100 participants to collectively own 12 residences. The residence's average value is $2.5 million. With a one-time capital contribution of $300,000, each equity owner enjoys seven years of residence access 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 Group says it operates in a debt-free mode, as it sells interests in the club structure as a means to create collective ownership of multiple real estate assets.
Lifestyle Asset Group purchases residences on behalf of the member/owners, then serves as its management company, enabling travel and maintaining the residences for the equity owners.
At the end of the LLCs' term, Lifestyle Asset Group sells the residences, and owners receive all of the proceeds in the divestiture process. The management is eligible to receive 10 percent of the net gains, assuming they increase.
Lifestyle Asset Group was founded by Richard Keith, also founder of Private Escapes, a destination club that was acquired in 2009.
"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," Keith told Luxist. "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.
"We are thrilled in bringing Lifestyle Asset Group to the market place and believe strongly that it will appeal to certain buyers who seek an array of travel destinations, demand a user-friendly reservation process and are satisfied with the mitigation of risk we offer through the LLC ownership structure. And as the members own the assets in the LLC, we appeal to those who believe that over the next seven years, values in real estate may increase. As the Operating Agreement requires, we divest the assets after a seven year hold, thus answering the important question of how the members get their money back and when."
Equity owners have the option of joining regions – currently in the East and Western U.S., that include a mix of beach, leisure, metropolitan, and mountain locations. Lifestyle Asset Group's model appears to offer significant travel flexibility as it doesn't use fixed, rotating, or space-available systems, as do other Private Residence Clubs or Destination Clubs. 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 low season might be 160 credits. Based on this model, equity owners can average between 30 and 40 nights of vacation a year.
Residences currently available are a four-bedroom, 4,770-square-foot Antebellum mansion in Charleston, South Carolina. Located in the Historic District, the restored, 200-year-old home blends historic preservation with modern convenience, including an 1,800 square-foot outdoor patio.
Also available is a five-bedroom, tropical residence in the Caletón Estates in Cap Cana. While staying at the Dominican Republic hideaway, owners and their families may also enjoy member access to the Punta Espada Golf Club and Caletón Beach Club, with a terraced swimming pool, spa treatments, and full-service dining.
The Western Region includes a four-bedroom Villa Residence in Cabo San Lucas, Mexico.
The other Lifestyle Asset Group's Residence, Western Region is in Deer Valley, Utah.
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. Future destinations will include Napa Valley; Maui; Monterey Bay; Newport Beach; Punta Mita, Mexico; San Diego; San Francisco; Las Vegas; Santa Barbara and Scottsdale.