VIVO LIVING

NEW BRAUNFELS, TX

Co-Sponsor

Vivo Investment Group

Asset/Strategy Type

Hotel-to-Multifamily Conversion

Capital to be Raised

$1,690,000

Minimum Investment

$50,000

Co-Sponsor

Vivo Investment Group

Asset/Strategy Type

Hotel-to-Multifamily Conversion

CAPITAL TO BE RAISED

$1,690,000

Minimum Investment

$50,000

Additional

Information 1

Targeted IRR:
±20.62%

Targeted Equity Multiple on Exit:
±1.47x

Preferred Return:
8%

Profit Split:
80% to investors until a 16% IRR, then 60% thereafter

Co-Investment:
90% investors / 10% Manager

Targeted Hold Period:
2 years

Offering Close Date:
August 17, 2021

  • Thank you for your interest in Fairway America. Please use the form below to request information on the New Braunfels North opportunity.

Fairway and Vivo (the “Co-Managers”) intend to execute the acquisition of a 64-unit Quality Inn & Suites (the “Property”) in New Braunfels, Texas, and convert it to multifamily housing (the “Project”) as part of the Co-Managers’ distressed hospitality-to-workforce housing conversion strategy. The Property will be the Co-Managers’ second deal in New Braunfels and tenth deal in the strategy, which targets functionally obsolete limited service and extended stay hotels in (a) markets with few quality affordable housing options and (b) at an attractive all-in cost basis. The Co-Managers believe the Property meets the strategy’s criteria, and once the conversion is executed, the Co-Managers intend to sell the Property to a buyer acquiring stabilized workforce housing properties.

Business Strategy 2

Fairway America and Vivo Investments 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. We believe the Property offers a unique opportunity because New Braunfels is well located, growing, and lacking affordable housing options.

Opportunity Highlights 2

  • High population growth in New Braunfels of 57.3% over the past decade, higher than the 6.3% growth realized for the US over the same time period. (according to Census.gov)
  • Conveniently located off I-35, and within walking distance of Goodwin Frazier Elementary, Church Hill Middle School, and Canyon High School
  • Acquisition costs plus currently anticipated costs of conversion would result in an all-in basis of $96K per unit, versus recent sales averaging $144K per unit3
  • The Co-Managers believe this is a unique opportunity to acquire a quality asset in a high barrier to entry market with housing demand anchored by consistent population growth
  • The Co-Managers expect to realize operational and management efficiencies due to the proximity of the Property to another Co-Manager conversion project

2 The business strategy is subject to change. There are many risks to participating in this opportunity. See “Risk Factors and Fee Disclosures” in the Offering Memorandum for a discussion of some of these risks, including loss of capital, illiquidity, and lack of diversification. This opportunity is unsuitable for investors who cannot afford a complete loss of capital.

3Costar New Braunfels North Submarket Report, April 2021

outside image of Bellaire Medical Plaza
outside image of Bellaire Medical Plaza
outside image of Bellaire Medical Plaza
outside image of Bellaire Medical Plaza

Interested in the Vivo Living – New Braunfels North opportunity? Please click below to request an Offering Memorandum, an appointment, or if you have questions.

  • Thank you for your interest in Fairway America. Please use the form below to request information on the New Braunfels North opportunity.