Sage Investment Group

I invested in a Sage hotel-to-apartment conversion deal and, at this point, my actual investor experience has not matched the pro forma/marketing expectations. The strategy may ultimately work after full stabilization or exit, but current cash performance has been disappointing: on a $50,000 investment, I have received about $2,620 total distributions, only about $313 over the last 12 months, and no distributions in the last 6 months. Some marketing materials/promoters reference strong historical returns such as 2.5x–3x equity multiples or 18%–25% IRRs, but my current return experience is nowhere close to that yet. Sage has provided updates explaining that lease-up, construction delays, reserves, and timing issues are affecting distributions, and they may recover if the fund executes well and properties sell/refinance successfully. But investors should understand this is not currently performing like a steady cash-flow investment and should not rely only on pro forma return targets when deciding whether to invest.