HOSPITALITY-CLOSED-FUNDS
Development of Dual-Branded Hilton Hotel - InvestmentsGainesville, FL
We are pleased to offer investments in Virtua Gainesville Hotel Opportunity Fund, LLC, an investment in the development of a 160 room, dual-branded Hilton hotel on 3.17 acres of opportunity zone-designated property in Gainesville, GA, a suburb of Atlanta. The property will be split 50/50 with 80 rooms under the Home2 Suites by Hilton flag and the other 80 branded under Tru by Hilton. This location is right near downtown Gainesville and surrounded by local drivers such as Northeast Georgia Medical Center, Georgia Inland Port, and six colleges and universities.
By reinvesting a recently realized capital gain into a Qualified Opportunity Fund, an investor may have an opportunity to defer and reduce payment of taxes on those gains. After holding the investment for ten years, investors will have no federal tax exposure on new capital gains generated through the fund. Tax benefits include no depreciation recapture, a key consideration for investors looking for passive losses. As a hospitality project that will include both real and personal property, Gainesville also offers investors accelerated and bonus depreciation.
Description
In Gainesville, GA, the development of a dual-branded Hilton hotel on 3.17 acres of opportunity zone-designated land.
Target Hold Period
10 years
Target Equity Raise
$10,100,000
Land Purchase Price
$2,350,000
Minimum Investment
$1,000,000 *Fund manager, at its discretion, may accept subscriptions of $50,000. No annual fund management fees.
Investor Suitability
Accredited Investors Only
Rooms
160 – split 50/50 (80 under each flag)
Flag Brand: Dual-brand
Home2Suites by Hilton, Tru by Hilton
*Investment in the Fund is inherently speculative. Targeted cash flow and business plan objectives are goals of the Fund and not projections of performance. This is an illiquid investment and there is no guarantee the Fund will exit in the time forecasted.
Risks of the Offering
For a thorough discussion of risks please see the PPM. Some of the risks include:
- Specifically, investors in this Offering risk losing all capital invested therein and/or may not generate the returns at the levels the Fund expects
- The investment is illiquid and members may not withdraw without Consent of the Company Manager or in contravention of SEC Rule 144
- The Fund’s investments will be in a specific asset. The investment will not be widely diversified geographically or by asset class.
- Cash distributions generally will be available only to the extent that the Fund has cash receipts available to meet all obligations and to thereafter return capital and profits to its members
Real Estate Risks
The business in which the Fund is investing is subject to all the risks associated with the real estate industry.
Investments in real estate are speculative in nature.
Many of these factors are not within the Fund’s control and could adversely impact the value of the Fund’s investments. These factors include, but are not limited to:
- downturns in worldwide, national, regional and local economic conditions;
- conditions affecting real estate in specific markets in which the Fund may invest, such as oversupply or reduction in demand for real estate;
- changes in interest rates and availability of attractive financing;
- changes in real estate and zoning laws;
- environmental and/or engineering issues unforeseen in due-diligence, and changes in environmental legislation and related costs of compliance;
- condemnation and other taking of property by the government;
- changes in real estate taxes and any other operating expenses;
- the potential for uninsured or underinsured property losses.
