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Virtua Hospitality Finance Fund I, LLC

We are pleased to offer an investment in the Virtua Hospitality Finance Fund, a small balance hospitality financing fund focused on mezzanine debt and preferred equity investments. This webinar reviews the offering details, strategy, and market considerations.

Offering Highlights

Description – Virtua believes the market for small balance hospitality mezzanine loans and preferred equity investments is underserved.  The imbalance of supply and demand presents opportunities to make loans at attractive risk adjusted returns.

Investment Term*– Fund terminates Dec 31, 2024; subject to extension for two additional one-year periods

Equity Raise – $25,000,000

Class A Minimum Investment – $50,000

Class B Minimum Investment – $500,000; on additional investment dollars above the $500k minimum, fees and promote are waived

Sponsor Investment – 20% of committed capital – up to $5m

Business Plan Objectives*

  • Provide financing to borrowers seeking to build new or improve value of hotels in strong markets
  • Seek repayment through refinance or sale of hospitality investments

Targeted Cash Flow*

First: 100% to the Class A and Class B Members, until such time as the Class A and Class B Members received a 10% cumulative return on an annual non-compounded basis on their Unreturned Capital Contributions (“Accrued Annual Priority Return”);

Second: To the Class A and Class B Members until the cumulative amount paid to each Class and Class B Member has reduced the amount of each Class A and Class B Member’s Unreturned Capital Contribution to zero; and

Third: Thereafter, 80% of remaining Available Cash for distribution among the Class A and Class B members and 20% to the Class C Member (Virtua).

Provide that to the extent investors do not realize an 11.5% IRR, Virtua will waive its promote.

* Investment in the Company is inherently speculative. Targeted cash flow and business plan objectives are goals of the Company and not projections of performance. This is an illiquid investment and there is no guarantee the Company will exit in the time forecasted.

Learn why this investment might be a fit for your portfolio by watching the webinar today.

If you are ready to speak directly to one of our IR specialists, please click here to schedule an appointment on their calendar.


 

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 Company expects
  • The investment is illiquid and members may not withdraw without Consent of the Company Manager or in contravention of SEC Rule 144
  • We are subject to the risks inherent in lending against the security of a trust deed and other security interests on commercial real estate
  • We may secure our Loans with fractionalized deeds of trust with non-affiliates in which we may be a minority or majority holder
  • We compete with a number of banks, savings and loan associations, mortgage banking companies, and investment firms.
  • State usury laws may impose restrictions on the interest we can charge
  • There could be a delay in the investment of proceeds from this Offering
  • Due to the size of the fund, we may be limited in the amount of diversification we can achieve

Real Estate Risks

  • The Company’s business 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 Company’s control and could adversely impact the value of the Company’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.
  • The contents of this communication: (i) do not constitute an offer of securities or a solicitation of an offer to buy securities, (ii) offers can be made only by the confidential Private Placement Memorandum (the “PPM”) which is available upon request, (iii) do not and cannot replace the PPM and is qualified in its entirety by the PPM, and (iv) may not be relied upon in making an investment decision related to any investment offering by the issuing company, or any affiliate, or partner thereof (“Virtua”). All potential investors must read the PPM and no person may invest without acknowledging receipt and complete review of the PPM.  With respect to the “targeted” goals and performance levels outlined herein, these do not constitute a promise of performance, nor is there any assurance that the investment objectives of any program will be attained. These “targeted” factors are based upon reasonable assumptions more fully outlined in the Offering Documents/ PPM. Consult the PPM for investment conditions, risk factors, minimum requirements, fees and expenses and other pertinent information with respect to any investment. These investment opportunities have not been registered under the Securities Act of 1933 and are being offered pursuant to an exemption therefrom and from applicable state securities laws. Past performance are no guarantee of future results. All information is subject to change. You should always consult a tax professional prior to investing. Investment offerings and investment decisions may only be made on the basis of a confidential private placement memorandum issued by Virtua, or one of its partner/issuers. Virtua does not warrant the accuracy or completeness of the information contained herein.

Securities offered through Emerson Equity LLC Member: FINRA/SIPCEmerson Equity LLC is not affiliated with Virtua Partners or its subsidiaries.

 

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