Welcome to the Alts Sunday Edition 👋
Let’s go
Ok, Wyatt here. You may know me from your Wednesday WC issues and the weekly community roundups.
Stefan and I spent Wednesday to Friday last week in Jalisco Mexico checking on our previous Altea tequila investments:
- ALTS 1: We have six barrels of 100% agave tequila ageing in the warehouse. They’re ready for action in Q1 next year (more on that below)
- Tequila I, which comprises 80 barrels of similarly delicious tequila, 40 each from Cascahuin and Arette, and
- Tequila II, which is our equity investment in the multi-award-winning Herencia de Agaves distillery
Over three days, we put our hands on every barrel and toured the distillery.
It was a productive (and delicious) few days, and I’d like to share our journey a bit.
Table of Contents
🥃 The 10th collection from House of Rare
New offering: 100 barrels released, 20 left
As you may know, Tequila is one of our absolute favorite alternative investments, and House of Rare is the only tequila company we do business with.
Our good friend Miguel recently released his 10th collection of 100 limited edition casks. Only 20 remain.
Four delicious cask flavors
Each cask is filled with 200L of 100% agave blanco and will age for 3 years in one of four exquisite finishes:
- 🟣 Ex-Sherry PX casks (delicioso!)
- 🟡 Ex-Calvados casks
- 🔴 Ex-Umeshu (Japanese plum wine)
- 🟤 Ex-Buffalo Trace (rich and caramel-y, pictured below 👇)
Deal terms
- Price:
$6,500Special price for Alts subscribers: $5,900 (only 20 left) - Est retail value: $12,000+
- Storage & insurance: Included for 3 years, at House of Rare’s new aging facility in Jalisco
- Exit: Bottle, hold, or sell. Your choice.
- Accreditation: Not required. Anyone can invest.
Perks
- As an investor, you get a Private Vault to age, store, or showcase your tequila
- You get future options to sell, rent, refill, or use the vault for exclusive bottle releases.
- You also get access to exclusive events in the US, Europe, and Mexico; including distillery tours and masterclasses.
Reserve your barrels now
Our community has already acquired 86 barrels through past offerings. These go fast.
Email Miguel at [email protected] (tell him we sent you) or just click below:
Day 1: Arette and Artisanal Prospects
We hit the ground running with a visit to check on our Arette barrels. Stefan–who arrived a few hours before me–meticulously inspected each barrel while I sat in traffic en route from Guadalajara to Tequila. The barrels are performing exactly as expected; they’re aging beautifully in Jalisco’s highland climate.
That evening, we sat down for a tasting session with an artisanal producer we’re evaluating for future barrel investments. I can’t share details yet, but the liquid speaks for itself – the tequila was sublime and eminently sippable.
If you’ve ever wondered what “terroir in a bottle” actually means, this producer gets it. It’s early days, and this investment is probably something for late 2026 or 2027, but I love uncovering new talent. Especially talent as handsome as this.
Day 2: The Cascahuin Secret and a Masterclass with Jaime V. Sauza
Day two was intense. We started at the Cascahuin distillery, which we were first introduced to during our spring 2024 Altea film trip to Tequila.
We were there to inspect thirty new barrels we’ve recently acquired.
What’s in them? That’s classified for now.
But this could be one of the most interesting plays in our tequila portfolio. More to come on this in the next few weeks.
We stopped by the auxillary warehouse on the way out of town to lay hands on forty of our ageing barrels for our Tequila I investors.
But we had to get moving if we wanted to catch the distillery crew before they clocked off for the day (they start at 7am).
So we headed to Herencia de Agaves, where things got really interesting. We toured the full production operation, met the team behind the magic, and tasted a range of distillations at various stages of maturation.
But the highlight was spending time with Jaime V. Sauza, the master distiller whose family name is synonymous with tequila. He’s fifth generation in Jalisco and knows literally everything and everyone.
Jaime (“Jimmy Sauce” to his friends and me) gave us an impromptu masterclass on cask selection, organic chemistry, and what he calls his “roller coaster tasting method:” a technique that involves evaluating tequila with all five senses. The secret to his method is an element of suffering, which was fun.
Watching him work is like watching a jazz musician improvise: equal parts science, intuition, and decades of experience. If you’ve ever doubted that distilling is an art form, spend an afternoon with Jimmy Sauce.
Then came the moment we’d been waiting for.
Miguel, the evil genius behind House of Rare and Herencia de Agaves, unveiled his four-phase development plan for a state-of-the-art warehousing and experience center that will fundamentally change how people interact with tequila.
Here’s the thing: in the wine world, the concept of an immersive experience is table stakes. Napa Valley vineyards have been perfecting the blend of production, hospitality, and education for decades.
Same with Scottish whisky distilleries; places like Macallan and Glenfiddich have turned their facilities into architectural landmarks and tourist destinations. But in tequila? It’s unheard of. It’s just not a thing that’s made it south of the border.
The future of Herencia de Agaves
Miguel is building something unprecedented. Designed by acclaimed architect Ted Givens of Bird Studio, whose parametric, futuristic designs have been featured in ArchDaily, Dezeen, and Designboom, House of Rare will be a landmark facility that integrates nature, light, and the volcanic landscape of El Arenal into a living architectural statement.
The project breaks down into three carefully orchestrated phases, each designed to build on the last while maintaining operational independence.
Phase 1: The Launch Module (Q1 2026 – Summer 2026)
This is where vision meets reality. Phase 1 delivers 450 m² of purpose-built space with capacity for 300 barrels: 100 reserved for private clients, 200 available for rental. But calling it a “warehouse” undersells what Miguel is building here.
The centerpiece is a tasting room and volcano-view terrace overlooking the agave fields, with The Volcano as the backdrop.
The sell is easy: Imagine standing on that terrace at sunset, glass in hand, watching the light shift across thousands of blue agave plants while your barrels age just feet away. This is the sensory anchoring that wine country has mastered and tequila has ignored.
From a business standpoint, Phase 1 generates immediate cash flow. At $400–$500 per barrel per year in rental income, those 200 rental barrels produce $80,000–$100,000 in annual revenue at full capacity. Factor in the private storage clients and you’re looking at a facility that starts paying for itself almost immediately while the property itself appreciates.
The total development cost for Phase 1 is $550,000 USD: $150,000 from House of Rare’s equity and $400,000 from external investors.
That investor capital is structured as preferred equity: you get priority return of your capital before anyone else participates in profits. Once the principal is recovered, you continue earning from net operating income and long-term appreciation.
Expected IRR sits at [redacted – the SEC won’t let us show this here], which is compelling for what is essentially a real estate play backed by recurring rental contracts.
Phase 2: The Expansion (Q3 2026)
Six months after Phase 1 opens, the expansion begins. Phase 2 adds another 750 m² and doubles capacity to 600 barrels. This is where the modular architecture really shines.
The design seamlessly integrates with Phase 1, creating a unified aesthetic rather than feeling like a tacked-on addition.
What’s smart about the Phase 2 timeline is that it de-risks the capital deployment. By the time construction begins, Phase 1 will already be operational and generating revenue.
HOR will have real data on occupancy rates, rental income, and visitor traffic. That means Phase 2 can be calibrated based on actual performance rather than projections. It also means Phase 1 investors get to evaluate Phase 2 with far more information than they had going into the first round.
The economics scale nicely here.
Another 600 barrels at $400–$500 per year generates an additional $240,000–$300,000 in annual revenue at capacity. You’re looking at a combined Phase 1 and 2 facility producing over $400,000 in annual barrel storage income alone before any hospitality or experiential revenue enters the picture.
Phase 1 investors get priority access to Phase 2 investment opportunities. This is important.
If Phase 1 performs as projected, Phase 2 capital will be competitive. Getting first crack at it is worth something. Optionality has value.
Phase 3: The Transformation (Early 2027)
This is where House of Rare evolves from a high-end barrel storage facility into a full-fledged destination. Phase 3 adds 1,250 m² of adaptable modular space.
The plan is for seven units that can function as barrel storage, boutique hotel suites, art galleries, private event spaces, or some combination thereof.
There’s a delightful element of optionality (remember?) here.
If barrel storage demand remains strong, Miguel will scale up capacity. If the experiential tourism side takes off faster than expected, he’ll pivot units into hospitality. If a luxury brand wants to host an exclusive event in the agave fields, he’s got the infrastructure. The architecture is designed to accommodate all of this without compromise.
Phase 3 is also where the revenue model diversifies significantly. It’s no longer solely dependent on barrel rentals.
- Hotel suites in a landmark architectural facility overlooking tequila country? That’s $300–$500 per night, minimum.
- Private event hosting for brands, weddings, corporate retreats? Easily five figures per event.
- Curated art installations that leverage the space’s unique design? Additional draw for high-net-worth visitors who also happen to be prime barrel program clients.
This phase also positions House of Rare as a cultural institution, not just a commercial facility. Wineries figured this out decades ago. Opus One isn’t just selling wine, they’re selling an experience wrapped in architecture, landscape, and aspiration. House of Rare is bringing that playbook to tequila, and they’re doing it at a moment when premium tequila is exploding globally and experiential travel is one of the fastest-growing segments in hospitality.
OK so what?
The global premium tequila market has been on a tear for years, but the infrastructure around it—particularly on the experiential and investment side—has lagged. House of Rare is filling that gap in a way that’s both immediately profitable and positioned for long-term appreciation.
I’m genuinely and unabashedly very proud of what Miguel is building.
It’s an investment in tangible real estate, backed by predictable rental income, with upside exposure to hospitality and experiential revenue streams. The preferential equity structure protects downside while the phased approach allows investors to scale their positions as each milestone de-risks the next.
If you’re interested in learning more about the Phase 1 investment opportunity, smash the button below.
The terms are generous, the vision is clear, and Miguel’s track record speaks for itself.
Bonus: The 2026 Tequila Ladder
Remember when Steve Jobs used to announce great stuff at Apple events with “Oh, and one more thing?”
We’ve got one more thing.
While driving from Herencia de Agaves back to Guadalajara, Miguel, Stefan, and I hammered out the structure for a Tequila Ladder launching in 2026—an income-producing tequila barrel aging fund that will allow investors to participate in the upside of barrel appreciation over time. Think of it as a bond ladder, but instead of Treasuries, you’re holding barrels of aging agave. More details to come, but this could be one of the most compelling income-focused alternative investments we’ve offered.
Wrapping up
It was a fantastic trip. We left Jalisco with confidence in our existing investments and genuine excitement about what’s coming next. Our six Alts 1 barrels are on track for Q1 delivery, our Cascahuin and Arette barrels are aging beautifully, and the Herencia de Agaves distillery is executing on a vision that could redefine the tequila industry.
Salud. 🥃
See you next time,
Wyatt
Disclosures
We have multiple holdings with House of Rare, including through the ALTS 1 fund, Tequila 1 and Tequila 2.
This issue was written and edited by Wyatt Cavalier
This issue was sponsored by our close friends at House of Rare. If you buy barrels from Miguel, we get a few bucks.
