Fruition Capital Fund I Summary Fruition Capital Fund I acquires luxury and vacation properties in favorably-located markets showing strong recovery from the 2008 recession. These will include small resorts and guesthouses as well as luxury single-family vacation properties. Fruition believes this market segment will generate above average risk-balanced returns.

About Fruition  

Fruition Capital Group LLC was formed as an investment company to acquire, develop, and manage luxury and vacation properties in the United States and the Caribbean.

The company was formed in 2014 and is owned by Christopher Robinson, Walter deMilly, and Brian Startare. Mr. Robinson has significant consulting experience with both commercial and luxury design-build homes, having completed over 700 projects in the last 19 years Mr. deMilly has over 35 years of experience in real estate and finance, with over $500 million in managed portfolios. Mr. Startare serves as Vice President for business development.

How We Choose Properties

The principals of Fruition have extensive experience not only in real estate income properties, but luxury vacation resorts as well.

Once we’ve identified a candidate property, we’ll perform extensive research and due diligence. With the assistance of advisors on our team, we create realistic financial projections. If these projections meet our target return, and all due diligence items are checked and resolved, we proceed with an offer to buy the property.  

Investor BenefitsWhen you make an investment with Fruition Capital Group, you are buying into a business with benefits.

• Complimentary use of any property in our portfolio for a specified number of days per year.

• Annual dividends generated by property revenues.

• Asset appreciation to be realized upon sale of the properties.

Investment Strategy Fruition Capital Fund I concentrates on the purchase of value-add luxury properties in areas which demonstrate strong demographics and recovery from the 2008 recession.

Our principal objectives, in order of priority, are:

1. Preservation of Capital2. Positive Cash Flows3. Strong Potential for Equity Growth

To achieve these objectives, Fruition will make strategic acquisitions, and reposition these assets as conditions warrant. This work may involve anything from “buff and shine” to complete structural renovation and design.

Once these assets reach the target Internal Rate of Return, Fruition will liquidate the properties and distribute the profits to its investors.

Low Leverage To Minimize Risks. To achieve our goals, Fruition will employ only modest leverage. We will not acquire any property which cannot easily support its debt service from the outset.

Long-term, Tax-sheltered Cash Flow. Fruition will distribute quarterly cash flows to members. Because of the structure of the fund, investors will enjoy tax benefits on their distributions. The investment horizon of each acquisition is anticipated to be 6-8 years.

Investment Goals (continued) Value-Add Purchases. Fruition is an opportunistic asset manager focused on buying properties that are under-performing where cash flow and ROI can be substantially increased through renovation and repositioning efforts.

Alignment of Interests. The fund is structured so that investors receive preferred returns before Fruition receives any share of profits. This incentivizes the manager to perform well.

Hands-On Management. The principals believe that direct day-to-day management is a strategic advantage over larger institutional managers burdened with layers of management and higher administrative expense.

Diversification. An important benefit to aligning with Fruition is the opportunity to participate in a diverse selection of luxury properties and markets for a balanced and diversified investment portfolio.

Inflation Hedge. While inflation is not a concern today, it will be a concern in the future. The fund will take advantage of historically low long term interest rates using conservative leverage to accumulate income producing assets as a hedge against the high probability of future inflation.

Transparency. A hallmark of our business philosophy is that the members are well informed each quarter on the operations and financials of the assets under management in the fund. A detailed quarterly report is prepared which tracks actual performance to budget. This report accompanies each quarterly distribution.

Our Acquisitions

The Fruition Fund will acquire well-located properties which generate immediate income, and in some cases offer the opportunity for additional development for villas which can be sold as fractions. The properties below represent a few candidates we are considering:

Florida Keys Resort

This once-in-a-lifetime private island is located at mile marker 62 in the heart of the Florida Keys. The island is accessible via two separate causeway drives from the east and west of the island. The island is neighbored on the east by Conch Key, a small, old-world fishing village. The island to the east is Duck Key, a high-end residential island that is also home to world-class Hawk’s Cay Resort.

The property includes 16 existing units along with 6 waterfront lots which can be developed into luxury vacation rentals.

If Fruition acquires this property we would develop it out and reposition it for increased value.

This repositioning would include the sale of fractional interests to end buyers.

Guesthouses

Guesthouses in the keys are a proven means of income and appreciation. Fruition is considering the acquisition of four guesthouses in Key West:

L'Habitation

This is a delightful historic Key West guesthouse just 1/2 block from World Famous Duval Street in Key West, Florida.

With 11 units, it has a strong gross with room for growth. L'Habitation has an excellent rate of repeat business and it's within walking distance of the most visited attractions in Key West.

The traditional conch architecture with European flair add to the appeal of this very well maintained property. Potential for eleven transient rooms. This includes 2 bedroom manager's apartment.

Fruition expects to purchase this property for approximately $3 million.

This property is expected to return approximately 6% annually, not including tax benefits, appreciation, and investor benefits.

Mermaid and Alligator

This guesthouse is located in Old Town Key West, 3 blocks from Duval Street. This beautiful property consists of two buildings on two lots, with 9 units. Each room is themed and unique.

The property also comes with a commercial kitchen licensed for 12 restaurant seats. Currently this license is not being utilized.

Occupancy in 2013 was at 92% with an average daily rate of $234.92 per room. This guesthouse has a strong repeat business, is in outstanding condition, and has amazing reviews.

It has a small inground concrete pool and lavish grounds, porches, and nooks. There is offstreet parking for 8 cars

Fruition is contemplating a purchase of this property at $4.4 million. It is expected to return approximately 6% annually, not including tax benefits, appreciation, and investor benefits.

The Blue Parrot

Sweeping verandas & relaxed atmosphere permeate The Blue Parrot Inn, a delightful 11 bedroom, 11 bath Bed & Breakfast/Guest House.

Built in 1884, it reflects classic Bahamian charm with wonderful Victorian gingerbread.

Most rooms are exterior access, with view of a large heated pool surrounded by gardens.

Located just 2 blocks from world famous Duval St. it is walking distance to restaurants, shops, galleries & beaches.

All rooms feature AC, ceiling fans, cable TV, private bathrooms & most have refrigerators.

Fruition is contemplating a purchase of this property at $2.9 million. It is expected to return approximately 6% annually, not including tax benefits, appreciation, and investor benefits.

The Garden House

The Garden House built in approximately 1938 is an Historic Treasure located in The Downtown Historic District in Key West, Florida.

This two building, 12 bedroom, 12 bathroom guest house is a great value with great numbers.

Small heated pool. Common Area with Broadband Wi-fi available.

The guest house is located 2 blocks off Duval Street and within walking distance to the Historic Seaport, Shops, Restaurants and all Attractions.

The Inn has been in continuous operation as a bed and breakfast since the early 70's.

Fruition is contemplating a purchase of this property at $3.4 million. It is expected to return approximately 6% annually, not including tax benefits, appreciation, and investor benefits.

Economy of the Keys

The Florida Keys has remained remarkably resilient after the 2008 recession. Growth in tax receipts has exceeded that of the State of Florida by 20% since 2005.

Hotel occupancy has grown by 19% since 2006, and average daily rates, which were at $196 for the winter of 2009 have risen to $297 for the same period in 2014… an astounding 51% increase.

One reason for this growth, aside from the unique climate and geography, is due to stringent development codes and restrictions in the keys. Land is scarce, and the task of obtaining permits for new units is difficult if not impossible.

SUMMARY OF TERMSFund Name Fruition Capital Fund I

Manager Fruition Capital Group, LLC

Target Fund Size $10,000,000

Investor Qualifications Accredited Investors Only

Target Returns 10-15% IRR net to investors

Preferred Return 5% annually, non-cumulative, non-compounding

Excess Returns 75% to Members, 25% to Fund Manager

Use of Leverage Up to 65% LTV Maximum, with no less than 1.5 debt coverage ratio.

Fund Term 5-8 year operating period

Asset Management Fee 1% per annum

Minimum Subscription $100,000 (smaller commitments accepted at discretion of Fund Manager)

Initial Investor Benefit The initial investor at $250,000 shall receive 10% preferred return.

Investor Benefits All investors will receive complimentary, free use of properties owned by the fund, as set forth in the operating agreement.

Target Assets Well-located luxury vacation and hospitality properties below $20 million for value-add and repositioning.

Operating Business Acquisitions Fruition may acquire existing vacation rental management companies in target areas. This will enhance our pipeline and provide additional value to the company.

Crowdfunding Portal Fruition may enter into a joint venture to establish a crowdfunding portal which will earn fees and revenues from select real estate offerings.

Target Markets United States and Caribbean.

Reporting Schedule Quarterly unaudited financials including income statement, cash flow statement, and status report of funds investment objectives and activities.

This document contains preliminary, limited information regarding Fruition Capital Fund I, L.L.C (the “Fund”) and is subject to change. It is not an offer to sell or the solicitation of an offer to purchase any security, investment product or advisory service. Any such offer or solicitation may only be made by means of a current Private Placement Memorandum provided by Fruition Capital Group, LLC. Descriptions of prior performance in this document should not be regarded as representations of future performance by the Fund. Past performance is not indicative of future Fund performance. Certain of the statements in this document consist of, or contain, forward-looking statements. Those statements include references to the Fund's investment objectives, targeted return, targeted cash flow, investment strategy, anticipated or estimated performance and risk management, as well as statements containing words such as expects or expected, projected, estimated, believe or belief. Forward-looking statements are inherently speculative and should not be relied upon in making an investment. There can be no assurance that the results reflected in any such anticipated or estimated summaries of performance, targeted returns or targeted cash flows will be realized by the Fund. Actual Fund results will vary from the estimates of performance and targets contained herein, and those variations may be material. Furthermore, the Fund may not be able to achieve its investment objectives due to various risks. This document is not intended to provide legal, business or financial advice.