Arista Riverwalk Hotel

Total Raise

Expected IRR

$8 million

21%

Fund Overview

The IconicOZ Arista Fund LLC (“Arista Hotel”) is a single asset Qualified Opportunity Fund located in San Antonio, TX. The project is a 112 room 8-story new construction hotel along the historic Riverwalk in Downtown San Antonio, Texas. The property was previously a Marriot branded hotel which will be raised and branded the Arista Hotel. The estimated total project cost is $32.1 million or 286k per room. In addition to the 112 rooms, the Arista Hotel will feature a bar and restaurant, lounge, café and 2700 sq ft of meeting space.
The Arista Hotel is a Lifestyle Boutique Hotel. Artista Hotel has been designed to be highly representative of the local arts and culture of San Antonio. More than just a hotel, it is a place visitors and locals experience total immersion in the social, artistic and cultural scene that San Antonio offers. Rooms will feature handmade leather goods, Central & South American weavers, metal workers, woodworkers, pottery, and each room with a featured Street Artist and original artwork throughout. Unique in shape given the site constraints, the hotel design will accent the Riverwalk. The floorplan will allow both standard rooms and unique room experiences like bunkrooms and luxury suites. All while providing traditional Back of House (BOH) service features that many boutique hotels are challenged with in their properties.
San Antonio’s Riverwalk has over 11.5 million annual visitors (pre-COVID) which was more than the Eifel Tower and Statue of Liberty combined. Despite the large annual tourist numbers, San Antonio has only 9 luxury hotels in the downtown area. Historical data in San Antonio has been
dominated by low-cost chain hotels and misses the influx of the new business, international and millennial visitors that provide for an outsized return for additional Lifestyle Boutique Riverwalk hotels.
The project is being led by Matt Aitchinson. Matt is the CEO of Vault Investment Properties which owns and operates commercial strip properties, hotels, single and multi-family units in addition to commercial businesses. The General Contractor who has been hired for the project is Jordan Foster Construction who has been building large projects in Texas for over 50 years. Jordan Foster is bondable in individual projects over $100 million and has over 600 current employees demonstrating their large presence in the space.
The Fund has an expected IRR of 18.0% with a MOIC of 3.59x. These numbers are before OZ tax benefits. The total project is $32.1 million with the limited partner equity being $8 million. Preferred dividend on the project is 8% per annum with a 60/40 profit split between LP/GP.

Fund Name

Iconiz OZ Arista Hotel LLC

Iconiz OZ Arista Hotel LLC