Welcome to your weekly distillation of all the best from Altea.
Two new deals are coming in hot this week, but placement preference is given to current members.
Membership for the current cohort is locked in at the crazy low price of $1,500/year for life. Seven slots are left at this price.
Table of Contents
Live Deals
Altea Tequila SPV
- Investment size: $10k minimum
- Hold period: 3 – 5 years
- Potential IRR: 35% to 40%
- Fees: 2% management | 20% carry | nominal one-time subscription TBC
What’s the deal
Altea will acquire 50+ barrels of 100% agave tequila through this SPV to buy and hold for at least 3 years as the spirits age.
The barrels will be acquired, stored, and disposed of through our network of tequila brokers, private collectors, and exclusive brands in Jalisco, Mexico, over the course of 3 to 5 years.
Funding Status: $387k firm commits
What’s changed since last week
This is with the lawyers now, and we should have documents next week. I’ll be in touch late next week or early next week to begin the KYC, Self-Accreditation, document signing, and funds transfer process.
All going well, we’ll have this wrapped up first week of May.
Frank Auerbach Bundle
One Frank Auerbach Charcoal
- Investment size: up to $560k
- Duration: 3 – 10 years
- Potential IRR: 15% to 20%
- Fees: 1.5% management | 20% carry
Through the same London art connection that brought us Art Bundle I, which was 25% oversubscribed and has returned 19% in three months, we have the opportunity to acquire a unique piece by legendary German/British artist Frank Auerbach.
What’s changed since last week:
This one is live on the Altea investor portal now, and it should be wrapped up early/mid-next week.
New Deals
Two real estate opportunities this week from Altea member Vanessa Mendenhall.
128 Property Portfolio in Philadelphia
Deal Basics
Investment Type: Real Estate
Raising: $10,000,000
Minimum Investment: $100,000
Average Cap Rate: 10.35%
Projected returns: 15.2% IRR
Point of Contact: Vanessa Mendenhall
What’s the deal
This investment portfolio comprises 121 residential and 49 multi-family/mixed-use properties in Philadelphia. With a $15.4M acquisition price ($95.5K per unit), it offers an instant equity gain of $4M based on current market value.
Projected 5-year returns include $11.4M gross rental income, $11.1M net profits, and a 15.2% annual return.
Philadelphia’s real estate market shows promising developments, including major investments in life sciences, apartments, and mixed-use projects.
The minimum investment is $100k, but if there’s enough interest from smaller checks, we can potentially put together an SPV to get you in. [Read how that works and what the fees are]
Rancho Cucamonga 265
Deal Basics
Investment Type: Real Estate
Raising: $5,000,000
Minimum Investment: $100,000
Projected returns: 31% IRR
Point of Contact: Vanessa Mendenhall
What’s the deal
The Rancho Cucamonga land development project, encompassing 265 acres, presents a potential investment opportunity with a three-year timeline. The project requires a total capital investment of $18,518,850 and involves the sale of 60 undeveloped 2.5-acre lots and 40 developed lots.
The projected net profit is $31,021,150, subject to market conditions and successful execution of the development strategy. The project is structured in two phases. Phase I focuses on entitlements, planning, and initial dispositions, while Phase II involves continued access development and the sale of improved lots with architectural plans. Comparable sales in the area range from $584,000 to $1,500,000 per acre, suggesting potential market demand for the lots.
The minimum investment is $100k, but if there’s enough interest from smaller checks, we can potentially put together an SPV to get you in. [Read how that works and what the fees are]
Upcoming Deals
[housekeeping: for all our sanity, I’ll only include upcoming deals where something has happened or changed since last week]
Previous Deals with New Activity
Alts 1
Q1 was the second quarter in a row with solid profits.
In the next few weeks, we’ll re-open Alts 1 to current investors who want to increase their allocation and new investors who missed out originally.
Events
Dom is talking about his Digital Marketing SPV next week. Make sure to RSVP.
Investor Field Trips
We should soon have a page put together for the Nashville trip. We’ve already locked in some killer guests and speakers.
Nashville
A music-themed investing adventure to Music City, USA.
- Est. dates: October 21 – 25
- Est. cost: $7,000 – $9,000
New Members
Please give a warm welcome to our newest members, David and Kieran.
- David is the Founder and Principal of Pantile Asset Research, a quantitatively-focused asset management company.
- Kieran is a key member of the South Island National Rugby League expansion team.
Please give them a warm welcome.
Cheers,
Wyatt, Stefan, and John
