"A Lifestyle to Appreciate."
The club's story starts with two founders, one looking to purchase a second home and another looking to join a destination club. The two got together and looked to see if they could "develop a smarter, more equitable and secure model" out of the two luxury travel options. Bringing in expert real estate and securities attorneys and industry executives the club molded a hybrid club version, calling themselves "the world's only private equity investment group that marries the virtues of real estate ownership with the lifestyle benefits of vacationing in first-class homes in the world's premier destinations."
Using the terms "members" and "investors" synonymously, members were owners of a Reg D compliant real estate investment trust (REIT) and enjoyed access to the club's properties, hence the "Lifestyle to Appreciate" tagline. Based on the club's structure as a registered security, Crescendo was heavily restricted in the forms of marketing allowed, but the club still saw success after their 2004 launch.
Averaging $2.7 million per property, by 2006 the club was enjoying nearly a 10% appreciation on the club's real estate. In that same year, Crescendo acquired a handful of members from a fellow equity destination club Destinations Private Resorts. In a letter to members, Destinations Private Resorts' Founding Owner Stan Dobrin wrote "At the core of Crescendo's philosophy is the belief that the company is truly the steward of its investors' money and that the company has a fiduciary responsibility to acquire, operate and, ultimately, liquidate all properties to maximize the financial returns to its investors."
In April of 2008, Crescendo and another successful equity club, BelleHavens, was acquired by Abercrombie & Kent for their new venture, Abercrombie & Kent Residence Club. All of the club's properties and the vast majority members elected to stay with the new club. In addition, Joe Mitchell, one of the most seasoned destination club executives in the industry has stayed on as the Senior Vice President of Real Estate Acquisition and Development. As Crescendo's President, Mitchell was responsible for new investor procurement, syndicate and portfolio management, property acquisitions, service delivery, partnerships, and financial management. Prior to his tenure at Crescendo and A&K Residence Club, Mitchell also founded and operated another pioneer destination club called Crescent Club.
Implementing elements from both Crescendo and BelleHavens into their model, Abercrombie & Kent Residence Club has established themselves as one of the premiere players in the industry.
To learn more about Crescendo Residences, please visit any of the club's quick links found to the right or request a free copy of our Destination Club Guide.
You Might Also Be Interested In...
Abercrombie & Kent Residence Club
Destinations Private Resorts