Filed under: Real Estate Developments
The Cuvée Residence, Lanai
Cuvée Ventures and Cuvée Escapes appears to have lived, since 2005, a well-funded, quiet, under-the-radar yet lively existence within ultra high net worth and wealth management communities.
"One third of our investors are private wealth or money managers. Our rental clients are celebrities, internet and retail executives and sports figures." said Larry Mueller, founder and CEO of Cuvée Ventures and Cuvée Escapes in a recent interview, "they really understand money and investment. But they are also at a place in their lives where they want to enjoy, in addition to substantial ROI (return on investment), what I call ROL -- a return on life investment-- as well."
"My idea to create this high-end, travel community began in 2005, where we could start a fund, create a community of accredited investors, and buy high end properties in cash. We would have great leveraging ability because of this, and after we bought them, either we could enjoy them when we wanted, or rent them out through our other company, Cuvée Escapes. We provide all of the extras -- a concierge on property, private chefs, cleaning services, whatever was wanted and needed by the investor family or the renter. That's the ROL of it!"
Both ideas, as both companies, compliment and supplement each other. Cuvée Ventures is a private equity fund /real estate investment group, whose investors enjoy the $5-8 million Cuvée residences purchased by their fund. When not being used by their investors, Cuvée Escapes also rents the homes, for between $3-8,000 per night.
Unlike the basic destination club model, either equity or non-equity based, Cuvée Ventures is a fund-based equity investment group, and rents the properties it owns, when the investor-families are not using them. It is also, according to Larry, 100% debt-free on its investment in real estate.
A few facts and stats: There have been two funds since 2005 that have purchased exceptional residences -- see next page. The investors pay $750,000 for a 1/2 share investment allowing 15 nights per year, and the full share investment, $1,500,000, allowing for 30 nights per year. The investors may stay at any of the residences available. Each accredited investor owns his or her share of the limited partnership that owns the real estate, so all of the investor money is tied directly to the hard asset. In Fund I, there were 17.5 shares and about 20 investors, and
in Fund II, there were 12 shares and about 14 investors.