Strategy

Motel-to-flexible-living investment strategy

Start with a real local need. Find an existing property that can meet it. Underwrite the conversion, financing and operations before committing capital—not after meeting a regional quota.

The problem we are addressing

Life moves. Housing often doesn’t.

A work assignment, a relocation, a new chapter. Not every stay fits a long lease or a nightly hotel. Our thesis connects that in-between need with existing properties that can serve a better purpose.

For people

Between a hotel and a home.

Furnished studios designed for everyday living—with room to cook, work and settle in, where local rules permit.

For properties

Existing buildings. Overlooked potential.

Reposition suitable underperforming motels instead of starting with a new building. Condition, conversion cost and zoning determine the fit.

For capital

Local opportunities need a coordinated approach.

Bring acquisition, financing and reporting into regional funds, with smaller operating clusters and clear property-level accountability.

Investment thesis and intended benefits, not a validated market-demand study. Conversion feasibility and financial outcomes require property-specific underwriting.

Proposed national program · not current holdings

40
Regional funds: 1,000
Target properties: 60,000
Target living units: $3B
All-in capital target

Directional allocations across eight regions. Property availability, demographic demand and financing remain subject to validation. Living-unit target assumes 60 rooms per property.

Independent capital

Tegra coordinates capital partners, investment governance and fund reporting.

Regional funds

40 proposed market funds sized by demand, sourcing fit and acquisition economics.

Operating clusters

Smaller 2–5-property groups, with drive times and shared staffing validated locally.

Property-level execution

Individual assets and SPVs with documented underwriting, financing and operating accountability.

Acquisition screening

Asset profile: Underperforming motel or limited-service hotel; generally 40–120 rooms, one or two stories; exterior corridors preferred.
Acquisition basis: Below $35,000 per room before renovation; approximately $3M all-in per property is a planning average.
Local catchment: Approximately 25,000–150,000 population in the trade area, not the full metropolitan population.
Demand anchors: Healthcare, logistics, manufacturing, education, military, government, workforce and extended stays.
Condition & conversion: Structurally sound assets with functional utilities, roof and HVAC. Validate zoning, fire/life safety, ADA, parking, kitchens and tenancy rules.
Operating clusters: Smaller 2–5-property clusters, subject to travel-time, shared staffing and local operating feasibility.

Demand drivers

Healthcare, logistics, manufacturing, education, military and government employment anchor demand. Population growth is one screen—not proof of motel supply, acquisition pricing or property-level cash flow.

Target assets

Underperforming motels and limited-service hotels, generally 40–120 rooms and one or two stories. Target acquisition below $35,000 per room before renovation, with physical condition and conversion feasibility verified.

Cluster model

Proposed regional funds target unequal property counts according to demand and sourcing fit. Smaller 2–5-property operating clusters may share staffing and services when drive times and local economics support them; efficiencies and exit premiums are not assured.

Renovation & everyday use

Practical kitchenettes, furnished studios and shared outdoor space can support everyday living, where zoning, life safety, tenancy rules and local demand permit. Conversion budget, reserves and achievable NOI are underwritten property by property.

Operating partners

Kiteville is the initial, non-exclusive operating partner. Qualified operators report assigned property KPIs without access to investor identities or unrelated records.

Risk discipline

Every property SPV has its own capitalization, lender covenants, ownership and governing documents. Leverage and distributions depend on lender approval and available proceeds.

Illustrative 70% of capitalization

Senior financing

Third-party senior secured debt, subject to lender-approved terms and deal-specific sources and uses.

Illustrative 30% · 12% annual preference

Preferred equity

Simple cumulative preferred return, no residual appreciation participation, and a target 3–5-year hold. Subject to definitive documents, available proceeds and risk of loss.

Illustrative 1–2% management fee

Fees & exits

Default example 1.5%, with payer, base and timing specified. Gross preference is not net investor return. Refinancing or sale may provide proceeds; redemption and liquidity are not guaranteed.

Private investments involve risk of loss and limited liquidity. Targets and accrued preferences are not guaranteed returns or available cash. No public securities offering, purchase, or automatic redemption is available here.

See funds