Hawaii real estate firm Elite Pacific Properties has gone into a collaboration concurrence with Lifestyle Asset Group, which offers investors a “collective asset ownership” fractional ownership model of purchasing luxury resort vacation homes.
The Fort Collins, Colorado-based organization bills itself as an all-money real estate investment model — investors are not allowed to buy shares to obligation with a leave procedure following eight years.
“One of the most exciting aspects of the collaboration with Lifestyle Asset Group is we can offer clients access to an enhanced profile of buyers and present a new opportunity for real estate ownership in Hawaii,” Anton Steenman, president and CEO of Elite Pacific Properties, said in a statement.
Lifestyle Asset Group, which was established after the Great Recession, oversees and works the vacation homes on behalf of the financial specialists who form a constrained risk organization to own the asset. After eight years, the property is sold and financial specialists get their initial investment back as well as a share of the appreciation.
For instance, a present listing for a home in Kapalua is offering 48 units of 2.08% equity interest each, comparable to one week of use per year for a one-time capital contribution of $399,500 per unit or week, and $6,900 in annual expenses per unit or week. Four units, or a month, would mean a capital investment of about $1.6 million with annual fees of $27,600, while eight units, or two months, would mean an investment of $3.2 million and $55,200 in yearly expenses. The website additionally has a listing for a home in Lahaina and another on the North Shore of Kauai.
“This is an innovative option for buyers looking to purchase a luxury vacation home in Hawaii,” Chad Pimentel, co-founder, and Hawaii senior partner at Lifestyle Asset Group said in a statement. “It also fits into the way they would like to own a property in Hawaii. Since they only use it for some of the years, they would love to only partially pay for it.”
The ownership program may appeal to purchasers who want to own a vacation home in Hawaii, particularly in the luxury price ranges above $5 million.
“Buyers looking to invest $5 million can now co-invest with similar buyers to purchase a share in a $20 million home with four potential co-buyers looking to invest $5 million each,” Chuck Garrett, vice president of brokerage operations at Elite Pacific Properties, said. “ We’re anxious to present options like this to our clients.”
The aggregate model additionally permits sellers to hold a piece of the property, the organization notes.
“To the reluctant seller, we provide a solution that was previously not available,” Rich Keith, senior partner at Lifestyle Asset Group, said. “The owner can now retain an equity interest in their beloved home instead of selling it, have us bring in partners, and no longer be burdened with 100% of the home maintenance and expenses.”
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