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Pacaso has properties in Mexico, the United Kingdom, Spain and now France, as the second home marketplace has acquired its first property in Paris’ 7th arrondissement, according to a Jan. 10 press release sent to Inman.
Selected for its unique co-ownership model was a two-bedroom, two-and-a-half-bathroom home on the second floor of a “meticulously preserved 18th-century building,” according to the company, which was co-founded by proptech entrepreneurs Austin Allison and Spencer Rascoff. Allison is its CEO.
“Our international success, particularly in places like London and Cabo, has underscored the universal appeal of co-ownership,” Allison said in a statement. “Current owners and enthusiastic buyers have been begging us to extend our reach to Paris and we’re kicking off 2024 by responding to that demand.”
Pacaso acquires properties in popular vacation destinations for resale in a co-ownership structure, most often selling each home in ⅛ shares. Buyers can acquire a larger share if desired. The company hires local management services, works with local agents and ensures that each owners’ needs are met in a way that will benefit the home’s surrounding market. It also markets any shares its owners care to dispose of, creating a fully circular marketplace.
Initial market headwinds facing Pacaso were driven by a misunderstanding of its model by communities and agents, confusing it for another short-term rental brand or inventory-stealing investment model.
The company’s structure actually preserves inventory by consolidating up to eight second homeowners into a single property, an appeal that rests in the fact that most second homeowners only use the home a few weeks per year. It also acquires homes well out of a market’s median price range.
Pacaso also focused its marketing message heavily on its use of only local listing agents and property servicers, and by paying buyer representatives market-rate commissions and other incentives. Agents can make multiple commissions on the same house.
Its first international destination was Marbella, Spain.
“At Pacaso, we recognize the challenges American buyers face when purchasing and managing homes internationally. We provide a unique solution that sets us apart, making international ownership a seamless experience,” Allison said.
The home in France is in the Saint Germaine district, steps from the Seine and a few more to the Louvre, Allison said.
As it does with most of its properties before marketing it to buyers, Pacaso is preparing the Paris property for its debut, working with local designers and vendors to ensure the type of delivery expected by its likely buyer segment.
