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, transforming it into a central hub for social activities. The restored hotel structure will house essential amenities such as the front desk, lobby bar, library, lounge, and a signature fine-dining restaurant. Ground floors of 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 suitable for events, and private board rooms and meeting rooms for business functions. The historic Cedars Hotel served as one of the most sought-after wedding venues in the region, and the Project expects to continue and host a significant amount of weddings each year.

The Project capitalizes on a strong market opportunity in the Hendersonville and Asheville region of North Carolina. With the Asheville Airport located 15 minutes away, the Project offers convenient access to major cities such as New York, Boston, Fort Lauderdale, Dallas, and Las Vegas. The local market demonstrates a growing demand for ultra-luxury, full-service communities, which the Project desires to fulfill by providing exquisite finishes, five-star amenities, and personalized services.  There is limited competition due to scarce available land, positioning the Project as one of the largest approved developments in the city. In addition, Hendersonville's favorable cost of living, 6% lower than the national average (source: Cost of Living in Hendersonville, North Carolina), attracts individuals and families seeking a high-quality lifestyle at a more accessible price point.  Additionally, North Carolina's population growth, including a significant influx of residents from other states, presents an opportunity for the Project to cater to the rising demand for luxury living options. Overall, the prime location, limited competition, growing demand, favorable cost of living, population trends, and regional appeal pose a strong market opportunity for the Project.

The Project's location offers its residents prime views and easy access to the Blue Ridge Mountain, which is 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 part of the Western North Carolina/Asheville corridor. A mere 15 minute drive to the Asheville Regional Airport, Hendersonville is one of the most accessible cities in North Carolina. The region's economy is experiencing growth, with a projected 50% increase in total employment, reaching around 296,000 jobs by 2047. The MSA boasts a relatively low unemployment rate 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 approximately 243%. Each EB-5 investor will be allocated 34.31 jobs, thereby exceeding the 10 job-creation requirement of the EB-5 Program. 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 is anticipated to create more than 406.5 model-derived direct jobs for regional center investors.

The NCE holds a Second Recorded Security Interest.In the event of default or foreclosure, the proceeds from the property sale would first be allocated towards satisfying the obligations of the Senior Loan, which holds the First Recorded Security Interest. Subsequently, any remaining funds would be allocated towards fulfilling the obligations of the EB-5 Loan. To provide an additional layer of security, the Senior Loan incorporates a revolving loan structure, ensuring that a maximum of $32 million would be prioritized ahead of the EB-5 Loan's second-lien position. The project has an appraised value of $164,500,000 upon completion, surpassing the debt associated with the property. This valuation suggests that in the event of a project sale, there may be sufficient funds available to cover all debt and potentially repay EB-5 investors. EB-5 Capital Not Needed: Even without securing any EB-5 funds, the Senior Loan and Condominium Deposits will provide the Developer with ample capital to complete the Project. EB-5 funds will be used to expedite construction so that Phase 2 can be built simultaneously with Phase 1. 

​​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. Residential Unit Sales (source: Business Plan dated March 2023)

The Project commenced demolition and site preparation in Q4 of 2022, which will be followed by the vertical construction of Pisgah Tower (Phase 1) with an expected completion by 2025. The construction of the Dupont Tower (Phase 2) is scheduled to be completed by Q1 of 2026. The overall construction period for the Project is anticipated to exceed 24 months. Additional commercial space buildout is planned for Q1 of 2026. The Project's operations, overseen by Accor Hotels (the “Operator”), are set to begin once Phase I is completed in 2025, with ongoing operations during the construction, sale, and completion of Phase II, expected to commence in mid-2026. Construction on the first tower commenced on March 8 2024 (source: https://www.blueridgenow.com/story/sponsor-story/fairmont-heritage-place-the-cedars/2024/03/28/groundbreaking-on-new-luxury-living-in-hendersonville/73103976007/).