The Opportunity

The project combines an established short-term rental in the Albuquerque foothills with a transparent digital ownership structure, providing fractional participation in a large-format vacation rental asset. Through a fractional ownership model, participants gain exposure to the property's short-term rental income and event-driven demand - including the annual Albuquerque International Balloon Fiesta - without the need to acquire or operate the asset directly.

Asset Overview

PROPERTY SPECIFICATIONS 14018 Arcadia Road NE is a single-storey single-family residence of Pueblo design style. No HOA applies. • Bedrooms: 6 • Bathrooms: 5.1 • Year built: 1977 • Gross living area: 4,300 sq ft • Site size: 20,700 sq ft (138 × 150 ft) • Effective age: 18 years (per appraiser) • Zoning: R-1D (Single Family, Extra Large Lot) The property is bounded to the north by Montgomery Boulevard, to the east by the Sandia Mountains, to the south by Interstate 40, and to the west by Tramway Boulevard. The appraiser notes the property backs up to an Interstate 40 on/off ramp; a city-maintained sound wall and an additional owner-installed sound wall surround the rear pool and courtyard area. DESIGN & INTERIORS Interior finishes include brick floors, wood beam ceilings, and New Mexican-style detailing throughout. The kitchen is custom-designed with upgraded appliances. Bathrooms are custom-finished. The property includes 2 indoor fireplaces, a game room with ping-pong, and a separate pool house (529.6 sq ft) with a half-bath, accessible via the rear courtyard. A workshop space is attached to the 2-car garage (1,001 sq ft). Separate entrances exist for the recreation room and the north bedroom. OUTDOOR & AMENITIES The rear courtyard (325.4 sq ft) features a gunite pool with cascading waterfalls, a covered patio, and an outdoor cornhole area. A covered porch (239.4 sq ft) runs along the exterior. The enclosed yard provides privacy from the street. VALUATION The property was appraised at $809,000 as of May 8, 2024, by Larry Kirkman (Equity 1st Realty LLC, NM Certification #03553-R), using the Sales Comparison Approach as the primary method. The Cost Approach indicated $816,821. The income approach was not developed, as the appraiser noted the property is used commercially as a short-term rental similar to a hotel, outside the scope of a residential appraisal engagement. The 2023 property tax was $8,183.96, paid in full, per Bernalillo County records. ASSET ENHANCEMENT STRATEGY The operator has committed to provide a full credit for roof replacement and pool resurfacing when required, pursuant to the Property Management Agreement and disclosures on the Lofty.ai listing.

Investment Terms**

Revenue Model

SHORT-TERM RENTAL INCOME The property operates as a vacation rental listed on Airbnb under the name "Casa Cascada." Gross rental revenue is generated through nightly bookings. Net cash flow, after operating expenses and the property management fee, is distributed automatically and proportionally to token holders via smart contract on a monthly basis. The property demonstrates pronounced seasonality. Peak performance occurs during the summer months (May–October), with the Albuquerque International Balloon Fiesta in October representing a significant annual revenue event. The winter off-season (November–February) generates materially lower cash flow. The operator notes that the reopening of Sandia Peak ski area has contributed to improved off-season revenue compared to prior years. CAPITAL APPRECIATION Token holders are exposed to changes in the property's market value over the holding period. Lofty.ai references the Zillow Home Value Index (ZHVI) Single Family Homes Time Series as a benchmark for long-term appreciation of single-family homes in the 35th to 65th home-price percentile range. Actual appreciation will depend on local market conditions and cannot be determined in advance.

Financing

MORTGAGE Mortgage payments are the personal obligation of the operator and are not deducted from LLC rental income or token holder distributions. Eligible participants in the LLC bear no direct liability for the mortgage obligation. IMPORTANT DISTINCTION The property carries an existing mortgage originated by Visio Financial Services, Inc. and serviced by FaServicing. The mortgage is held in the name of Tristan Joseph Huerta personally – not in the name of the LLC.

Why This Market

Past performance is not indicative of future results. Historical market data is provided for informational context only and should not be construed as a projection or guarantee of future returns. LOCATION 14018 Arcadia Road NE is located in the Foothills South submarket of Albuquerque, Bernalillo County, New Mexico (ZIP 87123). The area provides access to major commuter routes, retail corridors, and employment centres. SHORT-TERM RENTAL MARKET According to AirROI's 2026 dataset (April 2025 – March 2026), October is the strongest month for Albuquerque's short-term rental market and January the softest. Traveller demand has outpaced new inventory growth rather than being diluted by it, per AirROI market data. EVENT-DRIVEN DEMAND: ALBUQUERQUE INTERNATIONAL BALLOON FIESTA The Albuquerque International Balloon Fiesta is one of the most significant tourism drivers in New Mexico. In 2025, only one event session was cancelled due to weather, per KOB News (December 2025). The 2024 edition drew 838,337 guests, of whom approximately 73% travelled from outside New Mexico, representing 46 states, per the official Balloon Fiesta Economic Impact and Guest Research Study (May 2025). The 2025 event generated approximately $28 million in hotel room revenue, per Visit Albuquerque data presented at the December 2025 post-event briefing.

How the Model Works

Membership interests in Mango LFTY0411 DAO LLC are represented on-chain, with rental income, governance rights, and secondary market access managed through the structure summarized below.

Legal Structure

ENTITY The property is held in fee simple by Mango LFTY0411 DAO LLC, a Wyoming Decentralized Autonomous Organization Limited Liability Company, organised on May 18, 2024. Registered agent: Registered Agents Inc, 30 N Gould St Ste R, Sheridan, WY 82801. The LLC was organised by Distributed Inc, 115 West 27th Street, Floor 10R, New York, NY 10010. TITLE & OWNERSHIP Title to the property was transferred via Quitclaim Deed recorded on June 5, 2024 with the Bernalillo County Clerk. The grantor - Tristan Huerta, a single man - conveyed the property to the LLC for nominal consideration of $10.00, retaining a co-ownership interest. The LLC is the sole title holder of record. Legal description: Lot 1, Block 11, Wells Sandia Manor, plus the westerly one-half of the vacated right-of-way of Wells Drive NE, Bernalillo County, New Mexico. TOKEN & SMART CONTRACT Membership interests are represented by Algorand Standard Asset (ASA) tokens. The underlying smart contract governs token issuance, income distribution, and governance. Pursuant to Wyoming's Decentralized Autonomous Organization Supplement, the smart contract takes precedence over the Operating Agreement in the event of conflict.

Property Management

OPERATOR, CO-OWNER & PROPERTY MANAGER Tristan Huerta Commercial real estate and short-term rental operator with experience in CRE acquisitions and STR strategy. Graduate of the University of Texas at Austin. Currently works with Investment.com. Serves as the named grantor, co-owner, and property manager for 14018 Arcadia Road. Verified operator on Lofty.ai.

*Target only. Not a guaranteed or promised return **All figures, percentages, and returns shown in the infographics are targets only and are not guaranteed.