Case Study- WSS Temont
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WSS Tremont
Prevail Real Estate Opportunities is pleased to present Woodsprings Tremont LP in partnership with Genesis Realty and Development. Tremont is designed to fund the equity required for constructing a 122 room Woodsprings Suites Extended Stay Property in Kansas City, Missouri. The investment is organized into a Class A 9.75% preferred and Class B 8% preferred shares with a waterfall structure on exit. The property has an approximate 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 $1,800,000
- $200,000 minimum
- 9.75% cumulative preferred
- 22% targeted net IRR
- 9 units available
- Series B – Total of $900,000
- $25,000 minimum
- 8% preferred
- 20% targeted net IRR
- 36 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.