Strategic Fund I Objectives
- Acquire a diverse portfolio of investments in the hotel sector upon favorable pricing and terms.
- Realize capital appreciation upon the sale of investments.
- Preserve, protect and return invested capital to the Fund’s investors with an emphasis on stabilizing in-place cash flow and generating attractive risk adjusted returns.
- Provide investors with return of capital on their investment by selling or refinancing Investments in the Fund and distributing proceeds to investors.
- Target a three- to five-year investment holding period.
- Minimum LLC Investment: $50,000
- Preferred Return: 9% (1)
- Estimated Hold Period: 3-5 Years
- Projected IRR: See Offering Documents
- Acquire investments in select markets below replacement cost where Avistone can add value through physical improvement, repositioning, rebranding, change in property operations and strong asset management.
- Target Investment opportunities from Avistone’s extensive network of hotel brokers, auction firms, “fatigued owners” and lenders’ non-performing note and REO departments.
- Make strategic use of co-investments with institutional investors to acquire Investment positions in larger hotels and pursue a wider variety of potentially advantageous opportunities.
- Through effective asset management practices and alignment with best-in-class hotel operators, improve revenues to stabilize RevPAR, increase operating cash flow and sell opportunistically when market conditions dictate.
There is no guarantee this strategy or objectives will be realized.
Learn More About Avistone’s Strategic Fund I Investment Offering
To receive the investment summary and offering documents for Avistone’s Hospitality Investors Fund I complete the form to the right.
Avistone’s Track Record
With acquisitions of 24 high-occupancy properties representing nearly 4 million square feet of flex/industrial space in California, Texas, Georgia, Florida and Ohio, Avistone specializes in acquiring and operating stabilized multi-tenant flex/industrial properties that have the potential to deliver investors in-place cash flow for distribution and the potential for capital appreciation from increased rents and net operating income, although there is no assurance these objectives will be realized.
1) The Members will be entitled to receive a preferred return in an amount equal to an 9% cumulative but not compounded annual return on their Net Capital Contributions. The preferred return is paid from cash flow from operations or sale subject to available cash flow.
2) This communication is intended solely for accredited investors as such is defined in the Securities Act, and is not intended as an offer to sell, or the solicitation of an offer to buy any securities or ownership interests. Past or projected performance does not guarantee or predict future results; all projections and estimates contained herein are subject to change any time without notice. This investment opportunity may not be available in all states. All information contained herein is in summary form, does not purport to be all-inclusive or contain all the information or risk factors a prospective investor needs to evaluate the potential investment opportunity contained herein. Any such evaluation must be considered in conjunction with the final Private Placement Memorandum (the “PPM”); the information contained herein is qualified in its entirety by such and all prospective investors are strongly encouraged to read all “risk factors” in the PPM. Further, some of the initial information provided above contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties, and investors should not rely on them as predictions of future events. The forward-looking statements included herein are based upon Avistone’s current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Although Avistone believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Property’s actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, assumptions pertaining to leasing rates, reimbursements, market vacancy, tenant rollover and retention percentages, capitalization rates and other assumptions which may be inaccurate. Prospective Purchasers of Interests are cautioned not to place undue reliance on any forward-looking statements contained herein. The actual results of the Project may differ significantly from the results discussed in the forward-looking statements. Avistone reserves to the right to withdraw this investment opportunity at any time for any reason without liability to any party. Investments in private securities contain a high degree of risk and often have long hold periods. They are illiquid and may result in the loss of principal. Avistone’s strategy may not occur due to numerous external influencers.
3) Commercial Real Estate is subject to risks inherent to the acquisition, management and ownership of real property, including environmental concerns, changes in economic conditions, changes in the investment climate for real estate investments, new competition, changes in the demand from competing properties, changes in local market conditions, changes in lease-up periods, changes in real estate tax rates and other operating expenses.
4) Security transactions administered by WealthForge Securities, LLC, member FINRA | SIPC. WealthForge Securities and Avistone are not affiliated.
5) Past performance may not be indicative of future results; there is no assurance that objectives will be met.
6) Diversification does not guarantee profits or protect against losses.
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