UC Asset acquired 10-unit property for SHOC Airbnb in historical downtown district of Atlanta

Rhea-AI Summary

UC Asset (OTCQX: UCASU) announced the acquisition of its first Shared Home-Office Cluster (SHOC) property in downtown Atlanta for approximately $750,000. The property is planned to host about 10 units for short-stay rentals targeting business travelers on platforms like Airbnb and Vrbo. An estimated $300,000 to $400,000 will be invested in renovations. If successful, the property could generate annual gross revenues of $350,000. This innovative model combines home stays with business hotels, aiming to achieve high occupancy rates in a competitive market.

Positive

• Acquisition of property for $750,000 supports growth strategy.
• Potential annual gross revenue of $350,000 based on occupancy rates.
• Innovative SHOC model targets business travelers, enhancing market positioning.

Negative

• Investment of an additional $300,000 to $400,000 raises financial exposure.
• Dependency on achieving high occupancy rates in a competitive environment.

ATLANTA, April 19, 2021 /PRNewswire/ -- UC Asset (OTCQX: UCASU), an Atlanta-based real estate investment firm, is excited to announce that its subsidiary, SHOC Holdings LLC, went under contract on last Friday to acquire its first Shared Home-Office Cluster (SHOC) property located in the historical district of downtown Atlanta.  This property may be developed into about 10 units for short-stay rental, through online platforms such as Airbnb or Vrbo.

"This is a thrilling deal for us," says Greg Bankston, the CEO of SHOC Holdings LLC. "The property is located in the heart of Atlanta, right off a major exit of intersecting highways known as the "Downtown Connector". It is also directly across the street from ML King Jr., memorial; nestled in the neighborhood where he was born, grew up, preached and ultimately fought for civil rights. We believe this unique location makes it a perfect match for our investment of Shared Home-Office Cluster."

SHOC is a disruptive new concept for real estate investment. SHOC Holdings defines the concept as a residential property with each bedroom designed as an individual business lodge equipped with office capabilities. These home-office spaces can be rented out individually, mostly targeting business travelers. The company plans to sell those spaces on platforms such as Airbnb, Vrbo or through corporate partnerships.

"SHOC combines the merits of home stays (such as Airbnb) with conventional business hotels, and is an improvement to both," boasts Bankston.  "SHOC offers business conveniences that current home stays lack, and provides a lifestyle charm that current business hotels fail to provide."

For this specific property, total acquisition cost is approximately $750 000. Bankston estimates an additional $300,000 to $400,000 will be invested to remodel and renovate the property into about 10  units, including 2 executive suite units with private patio, 1 unit as a common meeting area, and 1 basement unit which may provide additional lodging for an onsite manager.

Bankston suggests that as an alternative to conventional business hotels in downtown Atlanta, a standard unit at a SHOC property may be sold at over $100 per night and an executive suite at $250 per night. "In the year of 2019, business hotels in downtown Atlanta recorded close to 90% of occupancy. If our SHOC property reaches a similar occupancy rate, our gross revenue may reach $350,000 per year." 

"UC Asset is an innovation-driven investment entity," shares Larry Wu, founding partner of UC Asset. "We invest into real estate companies which have high-growth potential, particularly those with revolutionary and disruptive business models such as SHOC. We are researching into a number of other real estate investment models which may also yield high return." 

About UC Asset:

UC Asset LP is a limited partnership formed for the purpose of investing in real estate for development and redevelopment, concentrating in metropolitan areas of Atlanta, GA. For more information about UC Asset, please visit: www.ucasset.com 

Disclaimer:
This News Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any these statements. You are cautioned not to place undue reliance on any those forward-looking statements. Except as otherwise required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements after the date of this News Release. None of such forward-looking statements should be regarded as a representation by us or any other person that the objectives and plans set forth in this News Release will be achieved or be executed.

For More Information Contact:
Christal Jordan | Investor Relations Director, UC Asset LP
cjordan@ucasset.com | 678-499-0297

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SOURCE UC Asset LP

FAQ

What is the purpose of UC Asset's acquisition of the SHOC property in Atlanta?

The acquisition aims to establish a Shared Home-Office Cluster to target business travelers with short-stay rentals.

What is the expected revenue from the SHOC property acquisition?

If occupancy rates are met, the SHOC property could generate approximately $350,000 in annual gross revenue.

When was the SHOC property acquisition announced?

The acquisition was announced on April 19, 2021.

What are the projected costs for remodeling the SHOC property?

The projected remodeling costs for the SHOC property are estimated between $300,000 and $400,000.

How many units will the SHOC property in Atlanta have?

The property is intended to be developed into about 10 units for short-stay rental.