DUSKFALL Deal Analysis

Base Case

Executive Summary

3 fully-private stargazing domes on a ~7-acre cliff parcel (parcel 1), Saugerties NY. Owner-operated STR. Phase 1 of a 71-acre entitled assemblage.

VERDICT: …
The thesis in one sentence. A transparent dome with a private hot tub and a shared cliff-side pool, in a Bortle 4 dark-sky site 2 hours from NYC — the closest amenity stack of its kind to the largest urban feeder market in North America.
Scenario reference vs. deck. The model's default inputs match the deck's "Conservative" case ($800 ADR / 65% occ / slow ramp) — the LP-facing anchor we're willing to defend. Apply the Base preset (top right) for the deck's internal-target case ($800 / 72% / fast ramp · 27.9% LP IRR) or Bull ($850 / 78% · 34.4% LP IRR). All three reconcile to the canonical Python proforma.

Investment Highlights

  • Differentiated amenity stack. A private acrylic hot tub at every dome plus a central heated pool, on a Bortle 4 dark-sky site 2 hours from NYC. The closest Northeast operator with private water amenity at every unit is Ferncrest (Poconos), and that site lacks dark sky.
  • Capital efficient. ~$697K/key all-in vs $500K–$830K for comparable boutique cabin developments. Surface bedrock anchoring on an existing site (well, septic, power) saves the excavation cost normally required at this build scale.
  • Proven demand. Domes at Catskills (127 reviews, $375/night) and Luxury A-Frame Saugerties (131 reviews, 4.97★) validate premium unique-stay pricing in this exact market.
  • Owner-operated. Hostaway PMS automates booking and messaging; smart locks enable self check-in; pre-staged guest flows eliminate ongoing labor. The model captures ~50% of revenue as NOI at Base case stabilization ($562K NOI on $1.13M revenue).
  • Inherently viral product. Stargazing domes are the #1 shared unique-stay category on TikTok/Instagram — organic social amplifies the $63K/yr marketing budget.
  • Phase 1 of larger opportunity. The 71-acre parcel is entitled for up to 121 resort units under the May 2025 Rural Resort SUP. These 3 domes validate the site before scaling.

Core Metrics vs Benchmark

MetricThis DealBenchmarkVerdict
Unlevered Yield (NOI / Cost)—8–12% = institutional quality—
Development Spread (yield − exit cap)—150+ bps = value creation—
Profit on Cost (stab value vs cost)—20%+ = strong dev margin—
DSCR (Stabilized)—1.25x = lender minimum—
NOI Margin—40–45% = strong hospitality—
Project Levered IRR (A1, whole-equity)—20%+ = institutional target—
Project Equity Multiple (A1)—2–3× = standard PE return—
LP IRR (D1 · 80/20 · 8% pref · 60/40 promote — deck-canonical)—15%+ = LP-grade target—
LP Equity Multiple (D1)—2–3× = standard LP return—
After-Tax IRR (bonus dep)—Levered IRR as floorShield front-loads returns
Y1 Tax Shield—Equity invested: ——

What You Need to Believe

AssumptionCurrent InputsFloor to Break EvenAssessment
Stabilized ADR—/night~$405 base-case floor (49% below $800)Requires catastrophic miss
Stabilized Occupancy—~35% (debt service only, at base ADR)Half of base = still viable
Exit Cap Rate—14%+ to zero equityHudson Valley exit caps cluster 7.5–10.5%
Construction Budget—+30% overrun = still fundableDents IRR, doesn't kill deal
The one real risk: ADR realization (base-case stress reference). The $800 stabilized ADR is the largest unproven assumption — the closest Northeast operator with both transparent dome and private water amenity is Ferncrest (Poconos) at $225–$300, and that site lacks dark sky. At $700 ADR (a 12.5% miss from the $800 base case) the deal still produces 23.9% whole-equity levered IRR and 2.27x DSCR. The deal stays solvent down to ~$381 (a 52% miss, DSCR=1.0). For live stress at the current inputs, see Sensitivity.

Why the Tax Structure Matters

Year 1 bonus depreciation shield of — is — of equity invested, returned as tax savings within 12 months of opening. Effective net equity at risk after Year 1: ~—. A 1031 exchange at exit defers all — in capital gains taxes. After-tax IRR of — exceeds the pre-tax levered IRR because the shield front-loads returns beyond what the standard model captures.

Phase 2: The Asymmetric Upside

Phase 1 (3 domes) generates — IRR standalone — this is not a land position play. If the operating model proves at this scale, the 71-acre Rural Resort SUP supports four expansion paths:

ScenarioUnitsCapexEst. Stab. NOI
Phase 2A: +8 Dome Expansion8 add'l F75~$4.0M~$900K+
Phase 2B: Boutique Lodge12–16 rooms~$6.0M~$1.2M
Phase 2C: Full Resort Build-Out50+ units$18–25M~$4.5M+
Phase 2D: Sell Stabilized P1Exit—$7.0M+ at 9.5% cap (Base case Y10)
Source of truth: stargazing_domes_proforma.py · Scenarios saved in browser localStorage.