As Equity Estates celebrates its 10th anniversary, the company continues to retain its strong position in the luxury destination residence sector. The second investment fund looks likely to be sold out by the year’s end.

Equity Estates manages luxury residence funds or equity destination clubs. Investors buy a share or membership interest in a portfolio of homes in locations around the world. Members then receive a certain number of nights in the properties of their choice throughout the year, while also knowing that they will have a return on their investment when the fund eventually divests the homes.

Eequity Estates Las catalinas Costa Rica 

The Fund II Portfolio features 11 residences. Among the confirmed locations are Park City, UT; Las Catalinas, Costa Rica; Big Island, HI; and Big Sky, MT. When I recently spoke with Marketing Manager Julie Beard, she informed me that a seven-bedroom property in Turks and Caicos is under contract and expected to close shortly. The final property to be added to the portfolio will be in either New York City or London, with details to come soon. Beard says, “London has been requested a lot by our members and so we're looking hard at locations in the city.”

Since there is reciprocity between funds, investors also have access to Equity Estates’s full portfolio of over 60 properties in more than 25 countries. Properties are only available to investors, meaning no competition with outside renters for available dates, and they all come with top-class concierge service to take care of a vacationer’s every need.

Beard says that there are currently fewer than 10 investor spots remaining, and they expect to be sold out before New Year. A total of 75 full membership interests were made available at the prices listed below.

 Membership Level  Advantage
(1.5 share) 
 Elite
(Full share)
 Executive
(Half share) 
 Capital Contribution  $597,500   $415,000   $227,500 
 Annual Dues  $29,745   $19,830   $9,915 
 Included Nights  45    30    15  

Beard mentioned that they have gained a number of “destination club refugees” with this offering; an estimated 25% of investors have switched to the funds from other failed clubs. Beard noted a number of factors that make Equity Estates stand out from the competition:

  • The equity model means members are making an investment with a good potential for return, one that is not subject to the ups and downs of a volatile stock market.
  • The portfolio will be sold off in 2025. At that point, investors will receive 100% of their capital contribution, plus 80% of any proceeds thereafter.
  • The fund retains complete financial transparency with all investors, and undergoes annual audits.
  • Their strong track record from Fund I, which is expected to start selling off properties in 2021, lets investors feel safe with Equity Estates.

The success of Fund II has coincided with Equity Estates’s 10th anniversary in November 2016. 

Equity Estates Lake Tahoe

In closing, I asked Equity Estates founder and CEO Philip Mekelburg where he sees the company progressing in the next ten years. He replied, “Equity Estates will continue to dominate the equity destination club market by offering the most sound model, the best homes, highest standards, and best availability. Our current scale and the addition of Equity Estates Expeditions has left us in a league of our own.”

For those who have missed out on the opportunity to buy into Fund II, Beard suggests staying tuned for announcements about future funds.

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