Shared Estates Asset Fund is a vertically integrated, carbon-neutral real estate redevelopment company and owner-operator of luxury estates for short-term rental. Industry experts say “The sharing economy, including short-term rentals, is growing fast.” Shared assets are accessible peer-to-peer (P2P) via a community based online platform, such as VRBO, HomeAway or AirBNB.
The Shared Estates Asset Fund, GP (the “Sponsor”) is focusing its acquisitions in the Berkshires of Western Massachusetts, which offer a rare, robust year-round vacation rental market. This is a region with a unique inventory of luxury estates from the 1800s and early 1900s. The area enjoyed an industrial and cultural heyday in the 1800s and early 1900s, but lost tens of thousands of jobs as major industrial companies like General Electric shuttered offices and manufacturing centers. As a result, there are many estates that are dramatically under-utilized, haven’t been renovated in decades and are even under threat of structural failure. The Sponsor plans to bring a number of these luxury and historic properties into the reach of middle class family gatherings, at a lower cost per person than standard hotel rooms. Through rehabilitation of historic properties from a vibrant past, creation of sustainable jobs and fueling the robust local tourist economy, the Fund is driving revitalization of this beautiful rural County.
This plan outlines an investment opportunity into the next property that the Sponsor plans to purchase, The Freeman Berkshires. The PLAYHOUSE (850 Summer Street, Lee, Massachusetts), the #1 vacation rental in this market, was developed, owned and operated by the management team since 2014 and recently sold at a profit.
In addition, all of the properties that the Sponsor renovates will be made carbon neutral through procurement of renewable energy credits to offset each property’s energy consumption profile. Building materials will be reclaimed materials wherever possible. No single-use amenities, such as plastic cups, will be offered. Other examples of energy conscious actions to be taken include installation of high-efficiency windows and plantings of native and edible landscaping.
Investors will be offered a preferred return on their investment and additional specified returns based on overall performance of property operations and ultimate sale. The Sponsor plans to contribute not less than 10% of equity capital, to be treated the same as Investor capital. Traditional banks are not always eager to finance projects like this, considering the location “too rural” or the business model too new. Therefore the Sponsor creatively seeks alternatives, such as investment crowdfunding or seller-financed loans.