[February 1, 2021, Portland, OR.] – Fairway America
Fairway America Management Group IV LLC and Vivo Investments, LLC, as Co-Managers, have announced the launch of Fairway’s newest investment Fund, the Fairway Vivo GP Fund LLC.¹ The Fairway Vivo GP Fund’s objective is to acquire hotels and motels in favorable locations throughout the U.S. and convert them to work-force level multifamily properties.
After collaborating on multiple middle market hotel-to-multifamily conversions, Fairway and Vivo believe that recent and current pressures on the hospitality real estate market, combined with an undersupply of work-force level multifamily housing throughout the U.S., create a unique and significant market opportunity to acquire hotel and motel properties at attractive prices nationwide and repurpose them into a more attractive asset class. The Fund is designed to provide potential investment advantages to investors by giving them an opportunity to make general partner-level investments through the Fund into the special purpose entities (“SPEs”) that will own each asset and be funded primarily by limited partner investors in those SPEs.
“Fairway and Vivo believe hospitality is one of the asset classes most negatively impacted by the economic disruption caused by COVID. Hotels experienced an abrupt and near total halt in business, and we believe that many hotel owners’ cash flows are no longer adequate to service debt. This has created a massive market for similar product at attractive economics,” reported Fairway’s Founder and CEO, Matthew Burk. “The structure of the Fund allows investors to participate at a GP level and earn a pro rata share of 100% of the net income of the Fund, with no profit participation by the Co-Managers at the Fund level. Instead, Fairway and Vivo will earn any profit participations at the SPE level.”
Burk said Vivo’s team has impressive credentials, highly valued and diverse professional skills, and a long history of managing and performing full renovations. “Over the years we’ve developed a strong partnership, mutual respect, and have enjoyed creating compelling investment opportunities together.”
Vivo Investment Group specializes in converting low-demand hotels to efficiency apartment complexes at market-rate pricing to renters while reducing traffic, waste, and sprawl. President and Founder of Vivo, Dan Norville, has led the structuring, financing, acquisition, disposition, leveraged buyout, valuation, and due diligence of over $1.2 billion in completed real estate and M&As in his career. “Vivo’s mission is to enhance the lives of those in our communities,” said Norville. “Our business model is in response to the rapid gentrification crowding out our younger population and exacerbating income inequality across the country. The Fund allows us to make the GP-level investments needed to deliver on our mission and repurpose hotels into affordable housing.”
Fairway and Vivo see the multifamily market as remarkably resilient, while conversely hotels and motels exist in oversupply in most major cities in the U.S. Traffic and urban sprawl are increasing, pushing renters in search of affordable housing.
Fairway America, a full-service investment firm, is a leader in U.S. middle market real estate. Fairway’s process of vetting and developing select executing partners reduces friction points for investors and opens greater investment opportunities in the vast, highly fragmented, and opportunity-laden $8+ trillion² middle market.
Established in 1992, Fairway enjoys a unique position of strength in evaluating potential investments in all asset classes and providing investors with streamlined access to this potentially lucrative market segment. Its visceral and grassroots understanding of the middle market space enables Fairway to provide co-sponsors with key functions in the investment process, thereby providing investors with uniformity, transparency, and access.
Fairway, and its subsidiary real estate administration company, Verivest LLC, are recognized in the sponsor and the investor communities as trusted players in U.S. real estate. Fairway’s close relationship with Verivest gives Fairway a deeper insight into the operational aspects of real estate fund management and helps it understand and address the needs of both sponsors and investors.
Fairway America, LLC
16150 SW Upper Boones Ferry Rd. Portland, Oregon 97224
Fairway America, LLC (fairwayamerica.com) and its affiliated and related companies (“Fairway”), offers real estate investment opportunities and real-estate related equity securities. Equity securities are offered through North Capital Private Securities Corporation, member FINRA/SIPC. For more information on how to become a Fairway investor or to seek capital, please visit fairwayamerica.com.
This press release does not constitute an offer to sell or a solicitation of an offer to buy securities in any of the companies mentioned or any related or associated companies. Any such offer or solicitation will only be made through private placement memoranda, offering memoranda, or other formal offering documents. Investors must not rely on information provided in this press release for investment decisions.
1This offering is speculative and involves substantial risks. Consider the risks outlined in the formal offering documents, including the Private Placement Memorandum before investing. Risks include, but are not limited to illiquidity, lack of diversification, complete loss of capital, default risk, and capital call risk. Investments may not achieve their objective.
2Source: Nareit Research, July 2019 “Estimating the Size of the Commercial Real Estate Market” and 4Q19 United States Capital Market Report, Newman Knight Frank