The raise, which was announced Feb. 16, is one of the first short-term rental funds ever created, according to AvantStay.
“AvantStay continues to break barriers for the STR industry,” Sean Breuner, founder and chief executive of AvantStay, said in a statement. “With this new capital and partnership with Saluda Grade, we will pioneer and institutionalize a new asset class that will inevitably pave the path for travelers to have a better experience and for investors to generate attractive returns.”
AvantStay plans to use the investment to increase its portfolio and expand into new markets. The company already has more than 1,000 properties across 100 cities and assets under management of more than $2 billion.
In the past year, Saluda Grade has secured 12 securitizations worth more than $2 billion. The AvantStay’s propco fund is Saluda Grade’s first investment in the short-term rental industry.
“We believe AvantStay’s dynamic and fast-growing customer base makes them the perfect partner for our firm to finally enter the burgeoning STR space,” Ryan Craft, founder and chief executive of Saluda Grade, said in a statement. “We were attracted to their higher yielding product and differentiated channels of supply, and we are confident they will continue to lead the industry with their robust offering of hospitality, tech, design, and real estate as an all-in-one package.”
Saluda Grade also invested in AvantStay’s Series B fundraise, which was announced Dec. 15. The Series B funding was led by Newport Beach-based family office Tarsadia Investments and equity firm 3L Capital, which has an office in West L.A.
“I couldn’t be prouder of the entire team for what we’ve achieved over the last few months, as this news follows our Series B announcement in December,” Breuner said in a statement. “Our accelerated growth shows that there is a deep understanding of our offering. With Saluda Grade as an instrumental partner, we will continue to deliver our brand mission and provide groups with thoughtful and elevated experiences.”
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