This equity destination club builds portfolios of 6 luxury vacation homes that are collectively owned by 50 investors. The two current portfolios, Atlantic One and Pacific One, have a US East Coast and West Coast focus to their homes. With a new planned portfolio of city homes due to be launched.
After running a former luxury destination club, the founders Rich Keith, Karla Jones and Tommy Robinson focused on a different business model in starting Lifestyle Asset Group. They knew that people loved to stay at multiple vacation homes, without any of the worries of having to maintain them. They had also seen that having no debt on the homes, and having the member investors fully own the homes was a key part of the risk mitigation for the members.
The other part of their model is that they set the investment term to 7 years, which they say is the typical length of time that people own a vacation home. At the end of this period the homes are sold and the investors receive back their initial investment, plus 90% of any appreciation.
The east coast portfolio has now bought three of its six homes. These include:
- A 1,200-square-foot Turtle Bay apartment in Midtown Manhattan with two bedrooms, two bathrooms and a private elevator that opens directly into the residence. Members can also enjoy the outside view from the 18-foot wrap-around balcony.
- The Seabrook Island vacation home on Old Drake Drive (pictured below) features five bedrooms, five bathrooms, an elevator, four-car garage, covered porches and over 4,000 square feet of refined living space. Seabrook is a member only community and covers, tennis, golf, marina and equestrian. Membership is included in the Lifestyle Asset Group annual dues.
- On St John in the US Virgin Islands, Villa Intimasea (pictured above), sits above Chocolate Hole, and offers stunning 240-degree views. On a clear day you can see all the way to Puerto Rico. The home includes four bedrooms, four bathrooms, a gourmet kitchen and private balconies off each bedroom.
The other three homes will be in Miami, the Turks and Caicos and the Outer Banks of North Carolina.
Pacific One, had planned to buy its first home at Esperanza Resort in Los Cabos, but because of Hurricane Odile, the entire resort has been closed from September 2014 with a "soft" re-opening in April 2015. Lifestyle Asset Group returned money in escrow to the original investors when they were unable to purchase the home in Esperanza. They are now planning to close on this first home in May 2015.
The other homes in the portfolio will be in Maui, Lake Tahoe, San Diego, Palm Desert and Carmel, CA.
Each of these homes is in the $1m to $2m range and full share investments for either portfolio are $165,000, with $15,000 in annual dues for up to 6 weeks of use a year. Lifestyle Asset Group also offers half shares, which give owners up to three weeks of use a year. Hybrid shares give owners a half share in both AtlanticOne and PacificOne.
Rich Keith, CEO also told me that the company is planning to launch Metropolitan One this summer. This new portfolio will buy 2 or 3 bedroom city residences of 1,500-2,200 sq.ft. priced in the $2.5m-$3m range. The target cities are New York, San Francisco, Washington DC, Vancouver, Chicago, and London. Each full investment share will be in the $300k range.