Empire is a 22,901 square foot ground-up new development situated on a 2.81-acre site. The Sponsor finished construction and has begun leasing up the property. In total, Empire has 27 physical units split up across fifteen (15) one-bedroom units, twelve (12) two-bedroom units, and twenty-seven (27) garages.

To the Sponsor’s knowledge, Empire is the only senior living product available in the market and will establish the market rate for this specific target niche. In addition, the target tenant is retired and likely transitioning to renting from homeownership. The Sponsor seeks to strategically appeal to adults seeking a more worry-free lifestyle, first-class amenities, and an active peer community. 

Empire offers active seniors a better way of living: a flexible, worry-free lifestyle, plus access to a wide range of first-class amenities, breakfast and the opportunity to be part of a vibrant, active peer community.

The most recent third-party appraisal of the property was conducted in June 2020. The As Is -Land Value was estimated at $400,000.00; the As Complete - Value Conclusion was $6,400,000 and the As Stabilized – Value Conclusion was $6,800,000. 

Offering Circular

Description

Financials

Internal Rate of Return (IRR) is a metric used to estimate the rate of return to investors, including cash flow and appreciation after expenses and fees, assuming projections in the sponsor's financials are accurate. Target IRR is presented solely for the purpose of providing insight into the sponsor’s investment objectives, detailing its anticipated risk and reward characteristics and for establishing a benchmark for future evaluation of performance. Target IRR is not a predictor, projection or guarantee of future performance. There can be no assurance that the sponsor’s targets will be met or that the sponsor will be successful in identifying and investing in investment opportunities that would allow the sponsor to meet these return parameters. Target returns should not be used as a primary basis for an investment decision. Please read all available documents carefully. Returns not guaranteed. Any investment involves risk and may result in total loss of funds.

Target IRR

Target Cash on Cash return illustrates the average returns to investors after expenses and fees, assuming projections in the sponsor's financials are accurate. Target Cash on Cash is presented solely for the purpose of providing insight into the sponsor’s investment objectives, detailing its anticipated risk and reward characteristics and for establishing a benchmark for future evaluation of performance. Target Cash on Cash is not a predictor, projection or guarantee of future performance. There can be no assurance that the sponsor’s targets will be met or that the sponsor will be successful in identifying and investing in investment opportunities that would allow the sponsor to meet these return parameters. Target returns should not be used as a primary basis for an investment decision. Please read all available documents carefully. Returns not guaranteed. Any investment involves risk and may result in total loss of funds.

Target Cash on Cash

Target Equity Multiple is the total cash distributions received from an investment, divided by the total equity invested, assuming projections in the sponsor's financials are accurate. Target Equity Multiple is presented solely for the purpose of providing insight into the sponsor’s investment objectives, detailing its anticipated risk and reward characteristics and for establishing a benchmark for future evaluation of performance. Target Equity Multiple is not a predictor, projection or guarantee of future performance. There can be no assurance that the sponsor’s targets will be met or that the sponsor will be successful in identifying and investing in investment opportunities that would allow the sponsor to meet these return parameters. Target returns should not be used as a primary basis for an investment decision. Please read all available documents carefully. Returns not guaranteed. Any investment involves risk and may result in total loss of funds.

Target Equity Multiple

The Property is located in Silvis, Illinois. It is 165 miles from both Des Moines, Iowa and Chicago, Illinois. Silvis is also part of a larger metropolitan area known as the Quad Cities, an area situated across four counties in Illinois and Iowa. The location of Silvis allows for easy access to major metropolitan areas including Minneapolis, Omaha, Kansas City, St. Louis, Milwaukee, and Indianapolis giving Silvis daily access to millions of people and thousands of businesses. Silvis has easy access to both rail and interstate infrastructure, two major medical centers, and several community college/university districts.

The Quad Cities hosts more than 30,000 businesses, including Deere & Company World Headquarters, 3M, Alcoa, and the Rock Island Arsenal. The immediate neighborhood for the development contains many entities that would support and complement a senior living development. It includes healthcare providers, shopping, and some market-rate housing options.

Per Moody’s/REIS, income and asking rents are expected to increase annually for the next five years, an estimated 3.2% and 3.0%, respectively. Additionally, vacancy is expected to remain constant in the market, at ~4%. To our knowledge, the Property will be the only senior living product in the market and will establish the market rate for the specific target niche.

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Honokea is a wave park and surf village and resort located on 9.1 acres in Kapolei, Hawaii. It is currently in the 18-22 month pre-development phase of the projected $155 million development and construction budget. It will be funded by a combination of debt, equity, and special purpose revenue bonds issued by the Hawaii State Legislature and be eligible for Opportunity Zone benefits.

Upon completion of the 12-14 month construction phase, the property will offer a 6-acre outdoor surfing lagoon, suitable for all levels of surfing ability, high level competitions, television, and film industry opportunities. It will be complemented by 50 boutique bungalows for rent, a private bar, business center and function room, 7,000 sf of retail space and 5,000 sf of restaurant space.

The project will have many advantages over traditional surfing on the island. The wave pool generates a perfect wave every 6-8 seconds, with 20-30 second rides and 7-8 ft waves. Conversely, beach surfers often spend hours trying to catch just one 6-8 second wave, and they usually compete with every other surfer on the water for that one wave.

Honokea Wave Park and Surf Village will be a preferred destination for visitors including millennials, families, and general outdoor enthusiasts. Utilizing the best commercially proven wave technology to create an endless supply of “perfect waves,” the park is ideal for expert-to-beginner surfers from across the globe. Situated in Hawaii and steeped in the local surf culture, the 6 acre surf lagoon will support up to 88 surfers per hour, and will provide users with an authentic surfing experience. 

Revenue will be generated from surfing, general admission, lessons, lodging, fine dining, retail, and other amenities and activities, including: a rock climbing wall, skate park, ropes course, beach volleyball and BMX track. Corporate partnerships and sponsorships are also planned around surfing tournaments, Olympic qualifiers and trials.


The Property is located in Honolulu County, Hawaii, within the Urban Honolulu, Hawaii Metropolitan Statistical Area (MSA). The site is also within three miles of the master-planned community Kapolei, the second most populated area on the island of Oahu. Kapolei’s population was estimated at 44,969 in 2019 and has seen significant growth since 2000. Honolulu County had an estimated ~1.5 million people in 2019, growing 6.6% since 2010. At all geographic levels, the area is projected to continue gaining population.
  
Shopping is a frequent travel activity among domestic leisure travelers. The Property is approximately two miles from Ka Makana Ali’i, a large mixed-use development. It includes 1.4 million square feet of retail, dining, entertainment, hotel, and office use, anchored by Macy’s. The site is also five miles from Kapolei Commons, anchored by Target, OfficeMax, T.J. Maxx, and a Regal movie theater. The Home Depot and Costco, as well as numerous restaurants and service providers, are also within minutes.  

Hawaii’s leading industry is tourism. In 2019, Oahu had about 6.2 million visitors. About two-thirds of all visitors were repeat travelers to the island. Nearly one third of all tourists are from outside the United States. April 2022 was the 12th consecutive month in which visitor arrivals from the continental U.S. surpassed the same month’s level in 2019. Daily spending by U.S. visitors increased by 24.5 percent.

According to Market Watch, the growth of the Amusement and Theme Park Market over the next five years will be a 3.6% compound annual growth rate (CAGR) in terms of revenue and global market size. However, Business Research Company expects the amusement park market to grow from $70 billion in 2022 to $153.48 billion in 2026, a CAGR of 21.7%.

Global Newswire estimated the global surfing market to be at $4.0 Billion in the year 2022 and projected the size to reach $4.8 Billion by 2027, a CAGR of 4%. In 2019, The International Surfing Association claimed around 35 million people surf worldwide, and forecasted a rise to 50 million by 2020. Aquatics International reported 17 surf parks currently open globally, including 1 in Africa, 3 in Asia, 5 in Europe, 1 in the Middle East, 5 in North America, and 2 in Oceana. Another 47 parks have been proposed or are already in the planning and construction stages.

Honokea Surf Village

Comparecamp.com forecasts 45.8 million Airbnb users in the US in 2022, up from 44.5 million in 2021 (a 2.9% year-over year increase).

Although historically a seasonal rental market, Sandusky continues to add year-round destination attractions to the current indoor water park options, such as indoor rock climbing at Paddle and Climb, the Ghostly Manor Thrill Center, and the Sports Force Parks complex, with soccer fields, ropes courses, and trampolines. 

Due to the floor plans and building layout of the Property, the building offers great flexibility in rental options. Guests may rent a one-bedroom suite or combine with other suites to create a two-, three-, four-, five-, six-, seven-, eight- and thirteen-bedroom vacation location.

The Property Manager (Airriva) is an Airbnb specialist that has outperformed AIRDNA and Wheelhouse revenue projections in several other markets (ex. Cleveland, Cincinnati, Columbus, and Kansas City) by deploying a proprietary revenue optimization software application. This type of technology is widely used in traditional multifamily, hotel, and car rental industries, dynamically adjusting rates based real-time supply and demand, maximizing pricing and occupancy. Airriva has a 4.6 Google review rating (from 47 ratings), which is better than the 4.4 average across all businesses reviewed on Google.


The Washington is a nine (9) unit multifamily building located at 333 East Washington Street, Sandusky, Ohio. Originally built in 1890, the property on September 23, 2020 and subsequently spent approximately $2.4 million in renovations to preserve the Property’s historic charm while incorporating modern features and amenities for use as a short-term rental property. 

The building is approximately 7,200 square feet, comprised of eight one-bedroom units and one four-bedroom unit located on 0.22 acres in the downtown business district of Sandusky, Ohio. Renovations were completed in March 2022 and commenced short-term rental operations in April 2022. The property is managed by Airriva, LLC, an Ohio limited liability company.

Sandusky, Ohio is located in northern Ohio on the shores of Lake Erie, roughly midway between Toledo (45 miles) and Cleveland (50 miles). It was named the Best Coastal Small Town in America and is home to Cedar Point, one of the most popular amusement parks in the world. Additional area locations include Castaway Bay, Great Wolf Lodge, Kalahari and the Jackson Street Pier. Finally, Sandusky is also considered the center of the Ohio wine industry.

AIRDNA, a provider of short-term rental data and analytics covering over 10 million listings, rated the Sandusky market as a “B+,” with a score of 72 out of a possible 100. The Average Daily Rate has climbed from $247 in July 2019 to $298 (20%) in July 2021. Occupancy in the 75th percentile was 100% in July 2021, an increase over the 90% in pre-pandemic July 2019.  Bookings finished at 3,854 in November, compared to 2,417 the same month of 2019 (a 59% increase). That withstanding, Sandusky is a highly seasonal market. The Average Daily Rate climbed from $216 in November 2019 to $225 (4%) in November 2021. Occupancy in the 75th percentile was 62% in November 2021, an increase over the 40% in pre-pandemic November 2021.  Bookings finished at 1,114 in November 2021, compared to 514 the same month of 2019 (a 116% increase).


The Washington

The Sponsor purchased the property on May 10, 2021. At the time of purchase, the property had 4 tenants. Legacy tenants’ leases have expired with the exception of one tenant whose lease will expire January 31, 2023. The intention from the outset was to fully renovate the property and begin operating several units as short-term rentals (STRs) by April, 2022.

571 City Park is a pre-existing brick building built in 1900 in the historic German Village area of Columbus on .0789 acres. The property is 3,024 square feet in total, subdivided into 4 individual units. Each unit has 1 bedroom and 1 full bath. Strategically located in the desirable German Village neighborhood, 571 City Park aims to appeal to renters and tourists alike.

571 City Park features a blend of both short and long-term rental units. The sponsor believes this will give the property a unique ability to benefit from the flexibility of short-term rentals and the stability of long-term rentals. In addition, the STR units may open the property up to a broader addressable market such as tourists and executive travelers looking for a place to stay during the week or weekend. Lastly, once operational, operating expenses will include property management fees based on gross rental revenues.

571 City Park is a historic 4-unit brick building in the heart of one of Columbus, Ohio’s hottest neighborhoods—German Village. Two units are short-term Airbnb’s, the other two units are long-term rentals offering a unique investment opportunity.

City Park is strategically located next to parks and restaurants and is less than a 5 minute walk to downtown.

An appraisal for the property has not been conducted in the last year. The county tax auditor’s site lists the last transfer sale price at $500,000 on May 10, 2021. The Property Partner projects the post-renovation value to be at $1,000,000 based on local market comparables.

The laid-back German Village is known for charming brick houses built by 19th-century immigrants along Beck, Mohawk, and Deshler streets. Shops selling books, traditional fudge, and handmade jewelry mingle with art galleries, German pubs, American bistros, and artisan coffee shops. In summer, the Actors’ Theatre Columbus stages outdoor Shakespeare and other plays in Schiller Park with its fountains and flower beds.

AIRDNA, a provider of short term rental data and analytics covering over 10 million listings, rated the Columbus market as an “A,” with a score of 92 out of a possible 100. The Average Daily Rate (ADR) has climbed from $134 in September 2019 to $157 (17%) in September 2021. Occupancy in the 75th percentile is 83% in September 2021, the same rate as pre-pandemic September 2019. September 2021 Bookings finished at 17,555, compared to 14, 991 the same month of 2019 (a 17% increase).

Rhover

13.49%

4.95%

23.13%

24.30%

19.11%

16.80%

7.73%

5.56%