A new-build home on Chatham's Frost Fish Creek being offered in a group buy by Lifestyle Asset Group. Photo courtesy of Lifestyle Asset Group.
A firm that specializes in group buys of vacation homes is seeking investors in to launch a new luxury real estate product that offers a new spin on the old timeshare concept.
Using LLCs, Lifestyle Asset Group assembles a small group of investors who share equally in the purchase costs and operating costs of the multi-million-dollar assets. Lifestyle Asset Group has properties currently being offered from Maui to Aspen to St. John USVI and other luxury vacation destinations throughout the United States and the Caribbean.
The first Lifestyle Asset Group Cape property is a newly built, 3,414-square-foot, $2.75 million Chatham home on Frost Fish Creek with spectacular water views. Samantha Steward and Rick Stone, agents affiliated with the mid-Cape brokerage Today Real Estate are co-listing agents; six investor/buyers are sought.
“This is an equity ownership model that makes perfect sense for our luxury second home market,” Steward said in a statement. “This works for a significant number of luxury properties on the Cape. We have sellers who spend little time here year-round yet maintain these costly properties. While potential buyers who love the Cape won’t buy a multi-million home only to spend maybe four to six weeks, a year here.”
The Lifestyle Asset Group hopes the group ownership model compares favorably with the high cost of a traditional, week-long Cape Cod vacation at a hotel, which they estimated at around $15,000 for a family of four for seven nights, plus spending on meals and entertainment. Instead, Lifestyle Asset Group Senior Partner Richard Keith said, the firm is asking investors to pony up about $19,500 for up to 8 weeks of use at the Chatham house annually.
Unlike a traditional timeshare, each Lifestyle Asset Group LLC has a defined exit in six to eight years, when the property is sold, the initial capital investment capital is returned and appreciation shared.
