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Hotel to Apartment Conversions

Fairway America is pleased to present Fairway Vivo GP Fund LLC (the “Fund”), a middle market real estate fund focused on converting low-occupancy hotels into much-needed affordable workforce housing. Fairway America Management Group IV (“Fairway”) and Vivo Investments LLC (“Vivo”) are the co-managers of the Fund (collectively, the “Co-Managers”).

Industry experts describe the current housing market as “a perfect storm of market conditions,” with apartment conversions doubling last year and set to intensify in the year ahead.1

1 www.globest.com/2022/02/17/adaptive-reuse-expected-to-surge-this-year

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This investment opportunity is only available to suitable “accredited investors,” as that term is defined by the SEC.   Please contact your professional advisors if you are uncertain about whether you are an accredited investor.

Strategy Behind Hotel to Apartments Conversions

  • Fairway and Vivo believe that recent and current pressures on the hospitality real estate market, combined with an undersupply of work-force level multifamily housing throughout the U.S., create a unique and significant market opportunity to acquire hotel and motel properties at attractive prices nationwide and repurpose them into a more attractive asset class.
  • An investment in the Fund enables investors to participate in a portfolio of assets at the general partner level.
  • Fund investors will also earn 100% of the net income of the Fund with no profit sharing by the Co- Managers at the Fund level.
  • After collaborating on multiple hotel-to-multifamily conversions, Fairway and Vivo believe there is a massive market for similar product at attractive economics, and have formed the Fund to take advantage of this market opportunity.

About Fairway America

Fairway America is a middle market real estate investment manager that originates, underwrites, acquires, and manages middle market real estate investments, both debt and equity, across the United States through its related entities. The company has a 30-year track record of investing in middle-market real estate with a focus on value-investing principles.

Fairway focuses on the middle market due to smaller deal size, high fragmentation, market inefficiency, and the correspondingly high number of mis-priced assets. The Fairway team works with local and regional middle market real estate operating partners across the country to actively acquire and co-manage middle market real estate.

Fairway performs due diligence on its co-sponsor partners and on every deal into which the company invests. The firm manages both discretionary, diversified investment funds, as well as individual real estate syndications. As of Q1 2022, the firm manages more than $315 million of investor capital and a portfolio of assets representing more than $1 billion in estimated gross asset value across our single asset syndications.

Securities offered through North Capital Private Securities, member FINRA/SIPC. North Capital has been appointed as a placement agent for the offering of these securities and will receive transaction fees based upon the successful placement of equity securities for the Fund. NCPS will pay a portion of this amount to Fairway America Capital Markets Group, LLC (“CMG”), an affiliate of Fairway America, as reimbursement for cumulative salaries and direct expenses paid by CMG to registered representatives who are involved in capital raising activities for the Fund.

An investment in the Fund involves significant risks. It is only appropriate for qualified, sophisticated investors that are able to bear the economic risk of a complete loss of their investment in the Fund. Risks include illiquidity, lack of diversification, complete loss of capital, default risk, and the risk that the Fund may not achieve its objectives. This description of risks is not intended to be comprehensive. Please review the more extensive description of risks outlined in the Fund’s formal offering documents, including the Private Placement Memorandum, before investing.