Equity Investment
Amount
$1,275,000
Targeted
Term
4-6 years
Targeted
IRR
12-15%
Targeted
Cash Yield
7-9%
Targeted
Investor Multiple
1.5-2.0x
Minimum
Investment
$25,000
About the Property
Nestled within the heart of West Sedona, this exceptional estate spans an impressive 5,250 square feet, embodying the distinct style and rich cultural essence of the region. Encompassing over 2 acres adorned with elegant Sycamore, Cypress, and Mulberry trees, both the main house and casita, extending an additional 1,164 square feet, provides a panoramic spectacle of most iconic rock formations, the storied mining town of Jermone, and the hallmark southwestern sunsets. With privacy inside and out, this versatile property is perfect for entertaining, recreation, or corporate retreats.
Value-Add
Sponsorship identified strategic areas to make value-added improvements to the property, including:
Tailored Furnishing and Decor: Meticulously curated and adorned the entire residence with custom furnishings, creating a unique and inviting ambiance.
Refined Cosmetic Enhancements: Undertook subtle yet impactful cosmetic enhancements to elevate the dwelling’s aesthetic appeal.
Modernized Infrastructure: Implemented the installation of a state-of-the-art septic system, ensuring efficient and sustainable waste management.
Renewed Roofing: Replaced the roof with a brand-new installation, enhancing both the structural integrity and visual allure of the property.
Landscape Transformation: Revitalized the ample outdoor space with new landscaping, augmenting the property’s overall charm and curb appeal.
Why Sedona?
Thanks to its stunning red rock formations, hiking trails, and outdoor activities, Sedona is a popular tourist destination that attracts over 3 million visitors annually, with 500,000+ short-term rental nights booked. Sedona’s strategic location provides easy access to several renowned tourist attractions, such as the Grand Canyon, Oak Creek Canyon, and Slide Rock State Park.
Sedona benefits from a mild climate, with warm summers and mild winters. This creates a year-round appeal, which attracts visitors seeking outdoor adventures, wellness retreats, and relaxation.
Despite high tourist demand, Sedona has restrictions on new construction and limited available land for accommodations. The limited supply of rental properties creates a favorable market for short-term rentals. Less than 20% of short-term vacation rental properties in Sedona are full-time and professionally managed. Historically, professionally managed properties without numerous blackout periods outperform on average daily rates and occupancy rates.
Additional Benefits
Investors will also enjoy discounted stays at the property and exclusive access to “Orphan Days,” providing additional value to their investment.
Investment Size / Discounted Guest Fees:
$50,000 / 5% | $75,000 / 7.5% | $100,000 / 10% | $125,000 / 12.5%
$150,000 / 15% | $175,000 / 17.5% | $200,000 / 20%
*Certain blackout dates may be applicable. Discounts are contingent on a maximum stay of one week per twelve-month period.