Overview
Kiteville Extended-Stay Portfolio
Kiteville Investment LLC, a Philadelphia-based extended-stay operator founded in 2018 by CEO Budo Bunul, is acquiring 11 limited-service hotels (about 781 units) across Illinois, Indiana, Ohio, Michigan and Pennsylvania and converting them into extended-stay and workforce housing. The plan is to buy at a basis well below replacement cost (roughly $21K–$23K per unit), renovate, and lease to longer-stay residents whose occupancy is steadier than transient hotel demand.
Kiteville already runs this playbook at scale: 906 units live across 16 properties in 15 markets, operated on its own centralized platform for booking, self check-in, operations and AI-driven pricing. In Owego, New York, Kiteville bought an 80-unit motel for $2.2M, invested about $600K in renovation and, by its own figures, reached stabilized extended-stay occupancy in about seven months at a roughly 49% NOI margin.
This offering funds a $6.62M secured convertible note, about 20% of a ~$33.1M capitalization, sitting behind a $23.17M senior facility and ahead of $3.31M of sponsor cash equity. The note pays 12% (Year 1 paid-in-kind, quarterly cash thereafter). If the sponsor repays early, the payoff is the greater of 1.40x funded principal or an 18% IRR, plus a 2% exit fee. If the note is not repaid, it converts into 45% of the equity of the funded portfolio.
Funding: a $1,200,000 initial tranche (20% committed by Crowdlender's principals) closes ahead of November 23, 2026; later tranches fund asset by asset as each purchase closes. Escrowed funds release only when the senior loan and sponsor equity for that asset are also on deposit.
*Photos show Kiteville's existing properties in Owego, NY and Bradford, PA, to illustrate the finished Kiteville product. They are not among the 11 Great Lakes properties. Operating results are sponsor-reported.*
Community Areas
Apartment Interiors
Details
For more information, view the Sponsor's Investment Memorandum below.
Offering Docs
The core offering documents for this investment, prepared and delivered by the Sponsor.
Data Room
Full diligence file — appraisals, financials, and supporting materials, organized by folder. Available to accredited investors.
Deal Highlights
- Contractual 12% Coupon: 12% on funded principal; Year 1 paid-in-kind, quarterly cash interest thereafter.
- Minimum Return on Early Payoff: greater of 1.40x funded principal or an 18% IRR per tranche, plus a 2% exit fee.
- Sponsor First-Loss Capital: $3.31M of sponsor cash (10% of cost) sits below the note.
- Escrow Protection: funds release only when the senior loan and sponsor equity for each asset are also on deposit.
- Deep-Value Basis: acquired at roughly $21K–$23K per unit; about $35K per unit all-in including renovation.
- Proven Operator: Kiteville runs 906 live units across 16 properties in 15 markets; its Owego, NY conversion stabilized in about seven months (sponsor-reported).
- Equity Conversion: converts into 45% of the funded portfolio's equity on an uncured default or if unpaid at maturity.
Management
Kiteville Investment LLC
Kiteville is a Philadelphia-based extended-stay operator founded in 2018 by Budo Bunul. It acquires underperforming motels in markets with strong demand, converts them into modern, minimalist furnished suites, applies the Kiteville brand standard, and runs them on a centralized platform for booking, self check-in, operations and pricing.
Today Kiteville has 906 units live across 16 properties in 15 markets, including Philadelphia and Upper Darby, PA; Detroit, Tecumseh and Dowagiac, MI; Merrillville, IN; and Paris, IL. Its five-step playbook (Acquire, Convert, Brand, Operate, Optimize) is the one the Kiteville portfolio will follow.
Management Team
Founded Kiteville in 2018 and leads acquisitions and strategy. Built Kiteville into a 906-unit extended-stay portfolio across 15 markets.
Oversees operations across the Kiteville portfolio.
Property
Tenant Overview
Resident Profile: traveling and contract professionals, healthcare and construction crews, relocating employees, and local workforce residents who need furnished, flexible housing for weeks to months. Kiteville rents by the night, week or month with easy self check-in and no long-term lease required.
Unit Mix: furnished studios and suites with private baths, kitchenette essentials (microwave, mini-fridge, coffee), workspace, smart TV and high-speed Wi-Fi. At Kiteville Owego, monthly rates run about $1,450–$1,899.
Financials
For more information, view the Sponsor's Investment Memorandum.
Capital Stack
Sources of Funds
| Senior Facility (70% LTC) | $23.17M |
| Crowdlender Secured Convertible Note | $6.62M |
| Sponsor Cash Equity | $3.31M |
| Total | $33.10M |
Uses of Funds
| Acquisition (11 assets, midpoint of ~$16.5M–$18.05M) | $17.30M |
| Renovation | $9.10M |
| Reserves, Fees & Closing Costs (balance) | $6.70M |
| Total | $33.10M |
Debt Assumptions
Senior Acquisition & Renovation Facility
- Estimated Proceeds: $23,170,000
- LTC (Loan-to-Cost): 70%
- Term: 36 months
Videos
An on-site tour of Kiteville Owego in upstate New York.
Kiteville leadership on the Owego turnaround and the extended-stay model.
Life at Kiteville Owego from a resident’s perspective.