The Glass House: High-Yield Short-Term Luxury Rental
Deal Overview
Total Raise
$2.5M
Minimum Investment
$250K
Hold Period
5 Years
LP IRR
16.6%
Return on Equity
2.0x
AVGI Equities presents a unique opportunity to participate in the acquisition of "The Glass House," a 10,000-square-foot architectural trophy estate located in the ultra-affluent market of East Hampton, NY. This investment targets a high-yield, short-term luxury rental strategy in one of the most supply-constrained resort markets in the United States.
The project combines a significant basis advantage with immediate cash flow from high-end hospitality operations. Key highlights of this opportunity include:
- Exceptional Acquisition Basis: The property is being acquired at approximately $550/SF, a significant discount compared to recent trophy-level Hamptons sales which frequently exceed $700–$1,000/SF.
- Immediate Revenue Generation: Operated as a premier luxury short-term rental, the asset commands premium seasonal rates and attracts a repeat clientele of high-net-worth individuals and corporate users.
- Structural Supply "Moat": New luxury development in East Hampton is severely limited by strict zoning, large-lot requirements, and complex environmental regulations, effectively capping new supply and protecting the asset's competitive position.
- Attractive Return Profile: The business plan targets a 19.9% Average Annual Return (AAR) and a 1.99x Equity Multiple over a projected 5-year hold.
- Defined Exit Strategy: AVGI intends to distribute cash flow throughout the hold period and exit the asset in year five as a fully stabilized trophy hospitality property.
Join AVGI in acquiring a rare, glass-forward architectural masterpiece that delivers a blend of downside protection through its cost basis and significant upside through optimized luxury hospitality management.
Investment Highlights
- Attractive Going-In Cost Basis: Acquired at ~$550/SF, significantly below replacement costs and recent Hamptons sales exceeding $700–$1,000/SF.
- Trophy-Quality Asset with Scarcity Value: A 10,000 SF purpose-built luxury estate with a distinctive glass-forward architectural design that differentiates it from surrounding inventory.
- High-Yield Returns: Projected 19.9% Average Annual Return (AAR) and a 7% Preferred Return for investors.
- Limited Competitive Supply: East Hampton luxury short-term rental supply is highly constrained due to strict zoning, entitlement friction, and elevated construction costs.
- Ultra-Affluent Market: Located in one of the most supply-constrained resort markets in the U.S., attracting global high-net-worth and corporate clientele.
- Immediate Cash Flow: Asset offers immediate revenue with meaningful upside through an optimized booking and peak-season performance strategy.
Meet the Team
AVGI is a real estate investment firm that purchases opportunistic assets in New York as well as secondary and tertiary markets throughout the United States. The firm currently has in excess of $80 million of new developments under construction throughout Long Island and $200 million of real estate holdings across 6 markets - Long Island, Houston, Little Rock, New York City, Binghamton, and St. Louis.
Leadership Team
Allon Avgi
Chief Executive Officer
Allon Avgi is the Founder and CEO of AVGI. Mr. Avgi started AVGI at 21 years old when he acquired his first real estate investment. Mr. Avgi has since developed a diverse real estate holdings company that has reached $50,000,000 in AUM within only 4 years using his own capital and that of a select few individuals. As he starts to open the firm's investments to outside capital and build strategic partnerships, he has ambitiously set a target to acquire and manage a $1 billion real estate portfolio over the next 5 years. In his free time Allon loves reading, creating content for his social profiles, finding new art for his collection and envisioning the future. Allon is a strong believer in giving back, both to his alma mater, Hofstra University & Chabad Lubavitch.
Christopher Catalano
Chief Operating Officer
Chris manages full service property & asset management. With a customer-centric approach, Chris is committed to providing the best services to both properties owners and tenants. Currently, Chris and his team have over 450 units under management since formation in early 2020. Chris and his team members also manage leasing, accounting, property manager and landlord relations, and the in-house construction and maintenance staff.
Michael Genovese
Investor Relations
Michael brings a unique blend of leadership and service to his role as Investor Relations Manager in the real estate sector. With a solid background as a retired police officer, he managed treasury operations for his department’s Police Benevolent Association (PBA), demonstrating his financial awareness and integrity. Prior to his law enforcement career, Michael served in the U.S. Army, where he developed a deep sense of discipline and commitment. In addition to his service background, Michael led athletic divisions in two corporate fitness facilities, where he refined his management, operations, and client relations skills. His experience in these diverse fields makes him especially adept at fostering strong, trust-based relationships with investors, guiding them through opportunities with transparency and dedication. A devoted family man, Michael balances his professional pursuits with a commitment to his loved ones, aiming to create a meaningful legacy both at home and in his career.
CXA Property Management is a full-service property & asset management firm based in Long Island, New York. With a customer-centric approach, Chris has the unique skill of providing the best services and experiences for our residents and commercial customers, while also optimizing efficiencies to drive NOI growth for our investors.
CXA currently has over 450+ units and 150k+ commercial square feet under management since formation in early 2020. CXA Property Management has a team of over 20 highly skilled professionals in leasing, accounting, landlord/tenant relations, and construction and maintenance.
Project Financial Details
| Return Metrics (Base Case) | Value |
|---|---|
| Cost Basis ($/PSF) | $550 |
| Stabilized Yield-on-Cost | 9.4% |
| Average Annual Return (AAR) | 19.9% |
| Preferred Return | 7.0% |
| Average Cash-on-Cash | 9.8% |
| Equity Multiple | 1.99x |
| Sources | Amount | % |
|---|---|---|
| Acquisition Loan | $3,000,000 | 54.54% |
| Total Equity | $2,500,000 | 45.46% |
| Total Funding | $5,500,000 | 100.0% |
| Uses | Amount | % |
|---|---|---|
| Purchase Price | $4,200,000 | 76.36% |
| CapEx | $450,000 | 8.18% |
| Cash Reserves | $350,000 | 6.36% |
| Closing Costs | $300,000 | 5.46% |
| Occupancy Resolution | $200,000 | 3.64% |
| Total Cost | $5,500,000 | 100.0% |
New Low - Base - Upside Sensitivity
| Scenario | Low | Base | Upside |
|---|---|---|---|
| Sale Price | $8,300,000 | $8,900,000 | $9,800,000 |
| ROI | 87.75% | 99.41% | 116.03% |
| NEM (Equity Multiple) | 1.88x | 1.99x | 2.16x |
Invest in The Glass House: High-Yield Short-Term Luxury Rental
Total raise
$2.5M
Min Investment
$250K
Hold time
5 Years
LP IRR
16.6%
Return on equity
2.0x
↓ More details available to qualified investors ↓
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