Two boutique destination clubs offer a true “equity” based model, structuring their clubs as real estate investments rather than membership programs. Now the two have combined efforts in a deal merging Crescendo and Destinations Private Resorts.

Consolidating Efforts

Helium Report spoke with Chris Soderquist, managing director of Crescendo, about the transaction. “Destinations Private Resorts’ activities have been weaved into Crescendo,” he explained. Essentially, the deal means Stan Dobrin, founder of Destinations, is now working with Crescendo since the deal did not involve the acquisition of any homes or members. We’ve posted an excerpt from Stan Dobrin’s letter to Destinations’ members, below.

Crescendo has an option to buy the Destinations home based in Fountain Hills, Arizona (floorplan, below). According to Soderquist, “less than half a dozen” Destinations members joined Crescendo as investors.

New Investment Plans

Last Friday, Crescendo modified its membership plans. Since Crescendo is a registered security, the club is actually offering investment opportunities with membership benefits. Members are owners of a Reg D compliant real estate investment trust (REIT) that currently owns eight luxury homes (see map, below). As such, prospective members must qualify as accredited investors.

Prior to the price increase, the Platinum plan was a $315,000 investment with $23,500 annual dues. Today, the same plan is a $350,000 investment with the same dues, but 5-10 less days of usage. The increase represents a 10% price increase coupled with an approximately 10% decrease in usage.

Other plans include a new, lower entry-point Family plan at $225,000 (15-20 nights usage; $13,500 annual dues) and a higher, corporate plan at $400,000 (40-45 nights usage; $30,000 annual dues). The two new plans replace the former Gold and Platinum Unlimited programs which shared the same $315,000 investment as the original Platinum plan, but had different usage and annual dues.

The Family plan also reduces the size of the investment, offering half the equity stake of the new Platinum plan. Both allow any member, including extended family, to vacation at Crescendo’s $2.8 million homes (average value).

Two New Homes

The club recently added a new construction, 4,000 square foot home in Mauna Lani, Hawaii named “Hale Pu-uhonua.” Crescendo also acquired a new home in Punta Cana, Dominican Republic. We’ll post more about these homes in upcoming stories. Click here to read reviews from actual members/investors of Crescendo about their experiences.