New Deal Announcement: Pigeon Forge Portfolio
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Prime Location, Value-Add RVC/MHC Portfolio |
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Wingate Capital, in partnership with the Requity Group is pleased to present our newest investment opportunity, The Pigeon Forge Portfolio, a 301-site portfolio consisting of two RV campgrounds and one mobile home community. All three properties are adjacent, located within the heart of Pigeon Forge, TN, and have been owned/operated by the family that developed them over the last 30 years. This portfolio is located in a prime location, right off of the famous Pigeon Forge parkway, home to some of the top attractions in the Great Smoky Mountains such as Dollywood, The Titanic Museum, The Comedy Barn Theatre, Ripley's Believe it or Not, and many more. These attractions draw in over 12,000,000 visitors per year.
This is our 3rd project with the Requity group and each project is performing at or above projections thus far. The GPs are co-investing at least 5% of the equity as normal.
Additionally, this portfolio is conveniently located between two existing TRG campgrounds (Cove Creek RV Resort and Arrow Creek Campground), providing us with data points to support our assumptions and allowing TRG Management to leverage its economies of scale to run more efficiently while also cross-marketing the portfolio. Why We Love This Deal |
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In-Place Cash Flow. We anticipate sending monthly distributions of around an annualized 6% on invested capital Year One, and 8% by Year Two, with additional upside.
- Economies of Scale. Nestled between (2) existing portfolio properties we plan to leverage our existing infrastructure in the area to create efficiencies and cross-market.
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Below-Market Rates. After 30+ years of the original families ownership, the long-term rental rates are around 35% below market.
- Light Value-Add Strategy. The business plan will primarily consist of revenue optimization through improving the property marketing strategy, bringing long-term sites to market rate, and implementing dynamic & seasonal pricing.
- Bonus Depreciation. Our cost segregation estimates project us achieving ~80% paper loss on invested capital, despite being in 60% bonus depreciation environment.
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Investment Details & Target Returns |
- Purchase Price: $16,000,000
- Total Equity: $7,000,000
- Hold Period: 5 years
- Minimum LP Investment: $50,000
- Target LP Returns:
- Preferred Return: 8%
- Equity Multiple: 2X
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Net IRR: 17%
- Funding Deadline: 05/15/24
- Target Closing Date: Early June '24
- Distributions & Communications:
- Monthly Distributions
- Quarterly Reporting
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We will be hosting a webinar this Thursday, 5/2, to discuss the opportunity. We anticipate funding the opportunity by 5/15. To register for our webinar or place your soft commitment, please click the button(s) below. We will send out a webinar recording within 24 hours to all who are registered yet unable to attend live. The total equity raise is $7M and we have over $2M in commitments between our principal and an anchor investor so we anticipate filling up quickly.
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This investment is available on a first-come, first-served basis. Upon placing your soft commitment, your space will be held until the funding deadline, unless you first inform us that you will not be moving forward. We will anticipate having the legal documents uploaded to the portal by the time of the webinar. After the funding deadline, investors on the waitlist will have an opportunity to fund their investment if room is to open up.
We invite you to learn more about this opportunity by clicking the links above. Don't hesitate to contact us if you have any questions or would like to secure your commitment. We look forward to partnering with you. Sincerely, Wingate Capital & The Requity Group |
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Connect with Wingate Capital |
This email summary is for informational purposes and to gauge potential investor interest. This email summary is not intended to be a general solicitation or a securities offering of any kind. Prior to making any decision to contribute capital, all investors must review and execute all private offering documents, including the Private Placement Memorandum and its exhibits, which contains the complete information about this investment opportunity. The information contained herein is from sources believed to be reliable, however no representation by the Sponsors, either expressed or implied, is made as to the accuracy of any information on this property and all investors should conduct their own research to determine the accuracy of any statements made. Nothing in this message should be interpreted as a digital or electronic signature that can be used to authenticate a contract or legal document. This e-mail contains information that may be confidential and privileged. Unless you are the addressee (or authorized to receive messages for the addressee), you may not use, copy or disclose this message, or any information contained herein. Unauthorized use of this information in any manner is prohibited.
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