# [2008] A&K Residence Club



## TarheelTraveler (Apr 18, 2008)

Just as an FYI, the new Abercrombie & Kent Residence Club was announced today, with Crescendo and Bellehavens as the starting membership base.

Helium Report, Sherpa Report and Destination Club Forums all have good coverage on it.


----------



## Steamboat Bill (Apr 18, 2008)

Great partners as BelleHhavens and Crescendo are well respected, but they made a poor name choice (IMHO) for the new merged club.

A&K was involved as a third party in the T&H bankruptcy and they should have used a different name (IMHO) as there is still a huge lawsuit pending against A&K  them that has not been resolved yet. This event is the single largest blackeye in the DC insustry.


----------



## hipslo (Apr 18, 2008)

Well it looks like the crescendo model, which seemed to be the closest thing out there to a true equity model (at least when I looked into DCs around a year ago), is no more, as the new club is strucured along the lines of bellehavens, which has an equity "flavor" but isnt true equity, as I understand it.  Not that there's anything wrong with that, but for me, personally, a DC would need to be "true" equity before I would look at it seriously, as I am looking for actual real estate ownership across a diversified portfolio of vacation homes, with use of the properties being but a side benefit.  Oh well, maybe someday..... (crescendo was at a higher price point than I was interested in anyway, but their "true" equity model was intriguing and seemed to come the closest to the sort of arrangment I was looking for).


----------



## TarheelTraveler (Apr 20, 2008)

Hipslo - The new A&K club is definitely closer to the Bellehavens model, but it is, in fact, a true equity model.  All of the club houses are owned solely by the members debt free.  It differs from the Crescendo model, where management also had an ownership stake in the real property.


----------



## NeilGoBlue (Apr 20, 2008)

hipslo said:


> Well it looks like the crescendo model, which seemed to be the closest thing out there to a true equity model (at least when I looked into DCs around a year ago), is no more, as the new club is strucured along the lines of bellehavens, which has an equity "flavor" but isnt true equity, as I understand it.  Not that there's anything wrong with that, but for me, personally, a DC would need to be "true" equity before I would look at it seriously, as I am looking for actual real estate ownership across a diversified portfolio of vacation homes, with use of the properties being but a side benefit.  Oh well, maybe someday..... (crescendo was at a higher price point than I was interested in anyway, but their "true" equity model was intriguing and seemed to come the closest to the sort of arrangment I was looking for).



Hipslo.. check out equity estates... they might fit your need.. equityestatesfund.com


----------



## hipslo (Apr 21, 2008)

TarheelTraveler said:


> Hipslo - The new A&K club is definitely closer to the Bellehavens model, but it is, in fact, a true equity model.  All of the club houses are owned solely by the members debt free.  It differs from the Crescendo model, where management also had an ownership stake in the real property.




But if I understand correctly, in cresecendo the properties were to be sold at some point and the members and the management split the proceeds (like the "carried interest" structure in any typical real estate joint venture), whereas under the bellehavens model the only "equity" is the ability to sell your membership interest back to the club for a certain percentage of the then-current membership fee, with a requirement that a certain number of new members first had to buy new memberships.  There is no guarantee that membership fees will move in tandem with real estate values.  Thus, while the bellehavens model certainly has an equity "flavor", its not the direct sort of equity participation that I have been seeking.


----------



## hipslo (Apr 21, 2008)

NeilGoBlue said:


> Hipslo.. check out equity estates... they might fit your need.. equityestatesfund.com




Thanks, I have contacted them and requested additional info- the buy in prices are higher than the price point I have been looking for, and the homes seem to be overkill to a certain extent (prices are stated to range from 1m to 6m) but the model does seem to be a "true" equity structure.


----------



## TarheelTraveler (Apr 21, 2008)

You are correct, Hipslo.  With Crescendo, there was a definite end date, when you either decided to stay in, with your funds rolled over into "Crescendo II," or took your proceeds and left the group.  With the Bellehavens structure, it is equity from an ownership standpoint, so it would work the same or better from a liquidation standpoint, but the exit structure is similar to some other DCs in that you sell your membership back at the then current prices, with a split in profits.  As you point out, the change in prices could be more or less than any underlying real estate appreciation.   To date, the price increases have certainly been more than the underlying appreciation, but who knows how that will shake out long-term.

The problem with the true equity structure is the limitation on marketing that really impacts your ability to grow.  Accordingly, having seen it on both sides, I'd rather have the growth and broader resulting portfolio, even if it means giving up the true real estate investment structure, but that's a personal preference.


----------



## letsgobobby (Dec 21, 2009)

what is the price point of the equityestatesfund? This looks extremely intriguing. If they own 43 homes at $3m each, and divide among 300 members (all per their website), you are looking at $430k. Did they give you any indication of ongoing fees (annual)?

I can envision doing this with 3 total family members, since the residences are so substantial. We could share time one week per year, then each use one week, for the 30 total days.

The prospects of capital appreciation (at least keeping pace with inflation over time) is what makes this so appealing.


----------



## DeniseM (Dec 21, 2009)

Please note that this thread is from April, 2008.


----------



## letsgobobby (Dec 21, 2009)

yeah, saw that after posting. Maybe I'll PM. Trying not to start too many new threads.


----------



## DeniseM (Dec 21, 2009)

letsgobobby said:


> yeah, saw that after posting. Maybe I'll PM. Trying not to start too many new threads.



It looks like hipslo is still active on TUG, so they'd be a good one to contact.


----------



## TarheelTraveler (Dec 21, 2009)

I check back here on occasion as well.

I think Equity Estates is about $550-$600/night, depending on the number of nights.

Also, A&K has some very good deals going on now ((1) 40% off equity contribution and (2) dues only +10% without equity contribution for two years).

http://www.akresidenceclub.com/offers/

Finally, Ritz-Carlton is also offering some promotions, but I don't have all of the details.


----------

