"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.
MEMBERSHIP PLANS
The equity destination club offered three different membership levels: Gold, Platinum, and Platinum Unlimited. All three membership plans required the same capital contribution but different annual dues corresponding to the amount of annual travel required.
Gold Membership
Providing members 20 to 25 nights of annual usage, members paid $15,000 per year in annual dues.
Platinum Membership
Platinum Memberships provided members between 40 and 45 nights of usage each year for $23,500 per year.
Platinum Unlimited Membership
Similar to the standard Platinum Membership, Platinum Unlimited members receive 40 to 45 nights of usage per year, but the primary member does not need to be in attendence, allowing friends, family, and colleagues to enjoy the membership as well for $28,500 per year.
Eventually, the club transitioned away from the metallic monikers to create their Family, Family Premium, and Corporate Memberships.
Family
Allowing for 18 nights of annual travel, members invested $225,000 and annual dues of $13,500.
Family Premium
Nearly double the Family Membership, Family Premium Members could travel for 35 nights per year for a capital contribution of $350,000 and corresponding annual dues of $23,500.
Corporate
The club's highest membership plan, Corporate Memberships cost $400,000 and allowed members to travel 40 nights per year for $30,000 per annum.
Crescendo Residences is now an integral part of the Abercrombie & Kent Residence Club. We invite you to learn more about the club and the many elements they have taken from Crescenso.
PROPERTIES
Structured as a fully compliant Regulation D securities offering, Crescendo Residences was limited in the types of marketing, relying primarily on word-of-mouth referrals.
This equity structure provided club members a great deal of financial security, but did limit the pace of the club's real estate acquisitions. Despite these regulations, Crescendo was able to grow to become a sizeable player in the destination club sector.
The club's properties averaged approximately $2.7 million each, with up to 6,500 square feet of living space and typically showcased four bedroom layouts. Crescendo planned to ultimately own 36 luxurious properties around the world and managed to grow their club to eight before being acquired by Abercrombie & Kent for their new venture, the Abercrombie & Kent Residence Club.
All of the former homes of Crescendo remain with the A&K Residence Club today and continue to delight members.
- Punta Mita, Mexico
- New York City, New York
- Los Cabos, Mexico
- Lake Tahoe, California
- Big Island, Hawaii
- Scottsdale, Arizona
- Sun Valley, Idaho
- Punta Cana, Dominican Republic
RESIGNATION
Crescendo Residences' long term plan was to liquidate the club's real estate holdings after ten to twelve years. At that point, members would receive 60% of the profits and club 40%. If real estate had dropped in value during that period, the club and members would share the burden.
For members resigning before that point, the club worked on a "one in, one out" policy, where every new member acquired by the club would replace one member leaving the club.
Crescendo Residences was acquired by Abercrombie & Kent to form the Abercrombie & Kent Residence Club, taking many of the club's policies and structure into their business model.
PARTNERSHIPS
Crescendo Residences was one of the destination club industry's leading equity based clubs prior to their acquisition by Abercrombie & Kent. The club's properties and members provided the travel club a solid foundation for their new Abercrombie & Kent Residence Club.
Up until that point, it appears that Crescendo did not have any publicly known partnerships inside or outside the destination club sector.
PRESS RELEASES
Structured as a real estate investment trust, Crescendo Residences was limited in the types of allowable marketing efforts. As such, the only true press releases emerging from the club in fact came from Abercrombie & Kent when they announced that they had acquired the equity destination club for the creation of their new venture, the Abercrombie & Kent Residence Club.
Abercrombie & Kent To Launch Groundbreaking Destination Club
Date: April 18, 2008
Today, Abercrombie & Kent announced that they will enter the destination club industry with the introduction of the Abercrombie & Kent Residence Club. The new club will feature members and residences from two of the leading destination clubs in the sector, Crescendo Residences and BelleHavens.