Fairmont Heritage Place - The Cedars

Owners of the residences have the option to participate in a Fairmont-managed hotel rental program (the "Rental Program"), enabling them to rent out their units as traditional hotel rooms through the Fairmont website and other standard hotel booking platforms. Alternatively, they can choose to independently rent out their units using various short-term and long-term rental websites in the market. This flexibility empowers owners to tailor the usage of their units to their individual investment and lifestyle needs.

The Project includes the renovation of the historic Cedars Hotel. The restored hotel structure will house essential amenities such as the front desk, lobby bar, library, lounge, and a signature fine-dining restaurant. The new structures will host additional amenities like a fitness center, spa, meeting space, pool, and ballrooms. The development also offers an artisan coffee shop, a resort pool deck with hot tubs and fire pits, a staffed residence lounge with Wi-Fi, a dedicated "Bark park" for dogs, a gift shop, a spacious west lawn with a wedding gazebo, and private meeting rooms for business functions. The historic Cedars Hotel was a coveted wedding venue, and the Project will continue this tradition.

This North Carolina Project taps into a significant market opportunity and boasts a strategic location just 15 minutes from Asheville Airport, which offers direct flights to major cities such as New York, Boston, Fort Lauderdale, Dallas, and Las Vegas. With a cost of living 6% below the national average and a growing population, the region's demand for luxury communities and vacation homes is surging. The Project will meet this demand as one of the largest approved developments in an area with limited land availability. Featuring world-class amenities under the prestigious Fairmont brand, the Project's ability to generate rental income enhances its exclusive appeal.

The Project's location offers its residents prime views and easy access to the Blue Ridge Mountain, a year-long paradise for outdoor adventurers. Thousands of miles of trails are ideal for hiking, mountain biking, horseback riding, and rock climbing. Hendersonville is a historic city that is a mere 15-minute drive to the Asheville Regional Airport, making it one of the most accessible cities in North Carolina. The region's economy is experiencing growth and attracts interest from Fortune 500 companies and international corporations.

The anticipated 20 EB-5 investors will require 200 jobs. Based on the Project's budget of $118,522,092, the Project will create an estimated total of 686.2 jobs, resulting in a job cushion of 243%. The EB-5 program requires that of the 200 jobs, 20 must be direct. Based on the economic analysis prepared by EB5 Economist Consulting, LLC, the Project expects to create more than 406.5 direct jobs.

EB-5 investors hold a second recorded security interest. In case of default or foreclosure, proceeds from the property sale would first satisfy the senior loan, which is capped at $32 million, before addressing the EB-5 loan obligations. Importantly, the project’s appraised value upon completion is $164.5 million, substantially exceeding the total debt, which enhances the security for EB-5 investors. Additionally, the project can proceed without EB-5 funds, as the senior loan and condominium deposits alone are sufficient to complete construction.

​​The Developer Group hired a real estate market research firm, HVS Consulting and Valuation, to conduct a market study on February 27, 2020, which has been utilized as a basis for the financial projections. Income will be generated from both the sale of units as well as from rental/hotel operations. Unit sales alone are enough to repay all sources of capital, including EB-5 investors; projected unit sales are $120.3 million. All unsold units (if any) will operate as traditional hotel rooms managed by Fairmont, creating additional revenue for the Project. Residential Unit Sales (source: Business Plan dated March 2023)

The project began with demolition and site preparation in Q4 of 2022. Construction of the first phase, Pisgah Tower, started on March 8, 2024, with completion targeted for 2025. The second phase, Dupont Tower, along with additional commercial space, is scheduled to be completed by Q1 of 2026. Operations are set to commence following the completion of Phase I in 2025. (Source: https://www.blueridgenow.com/story/sponsor-story/fairmont-heritage-place-the-cedars/2024/03/28/groundbreaking-on-new-luxury-living-in-hendersonville/73103976007/).