Crescendo Residences Plans Upcoming Price Increases

Date: August 25, 2006

Crescendo Residences, one of the destination club industry's leading equity based clubs, is planning on increasing the price of purchasing an equity interest in the company over the coming months.

Currently offered at $295,000, capital contributions will move to $315,000 later this month and eventually to $335,000 in November according to the club. Crescendo compares an investment into their club to "owning a mutual fund of luxury residences."

"As a 30-year veteran of the industry, I have watched from the inside as the destination club industry, in particular, has evolved, and their shortcoming is apparent: when all is said and done, the club members do not own the assets and, therefore, have little security and no upside potential," said Crescendo's Chairman, Michael Burns. "We feel we've created the next generation of destination clubs, one that marries a genuine real estate investment with the enjoyment of first-class vacation homes in the world's premier destinations."

Crescendo plans to liquidate their estimated 36 properties in 10 to 12 years, dividing assets between members and the club. Members will receive 60% of any gains following the sale, the club keeping 40%. If the real estate takes a lose, then the club and its members will share the hardship.

For every seven new members that join the club, Crescendo purchases a new property available exclusively to members. Let's see if a new property soon joins the Crescendo portfolio as prospects join the club prior to the upcoming price increases.

To learn more about the various destination club models and suggested due diligence questions to ask when joining, please download our free Destination Club Guide.