Case Study- WSS St. Peters

WSS St. Peters

Prevail Alternative Assets is pleased to present WSS St. Peters in partnership with Genesis Realty and Development. WSS St. Peters is designed to fund the equity required for the construction of a 122-room Woodsprings Suites Extended Stay Property outside of St. Louis, Missouri. The investment is organized into Class A 9.75% preferred shares and Class B 8%preferred shares with a waterfall structure on exit. The property has an approximately 13-month construction period before opening the doors to guests.

If you have any questions, please reach out to your advisor or contact Regan Smith at rsmith@prevailiws.com

Investor Return Summary*

Class A – Total of $3,500,000
- $250,000 per share
- 9% preferred return
- 22% – 24% LP Net IRR Targeted

Class B – Total of $2,500,000
- $100,000 per share
- 7.50% preferred return
- 20% – 22% LP Net IRR Targeted

Investment Snapshot

Series A – Total of $2,250,000
- $150,000 minimum
- 9.75% cumulative preferred
- 23.3% targeted net IRR
- 15 units available

Series B – Total of $1,250,000
- $50,000 minimum
- 8% preferred
- 21.9% targeted net IRR
- 25 units available

Property Information

The economy extended stay category tends to have higher occupancy, and operating margins and historically performs better than traditional hotels during economic downturns.
Extended stay properties perform well because they capture demand from essential business travel (e.g. relocating workers, construction crews, healthcare employees). They also can operate with a comparatively much lower staffing level.
The Woodsprings Suites brand tends to operate at a higher gross margin than competitors in the extended stay space.
Genesis Realty has completed 5 Woodsprings Suites projects and currently has 4 under construction. With a total number of 2,000 extended stay rooms under development, Genesis senior management has completed more than $500M in properties.
Cost segregation and resulting accelerated depreciation on other Genesis Woodsprings Suites projects have delivered significant depreciation benefits to investors beginning in year one of operations.

*These are all preliminary estimates, with no guarantee of performance, and involve risk.