Equity Residences’ Equity Platinum Fund continues to grow their vacation home portfolio with their latest residence on St John in the US Virgin Islands.
The Managing Directors Greg Salley and John Long say they are responding to investor demand for more locations in the Caribbean. Vacations in the Caribbean are popular with the East Coast and Midwest based Fund investors, as they escape Winter or enjoy Spring Break with family and friends.
Every year Equity Residences asks their investors’ for input on where to add the next homes, and St. John kept coming up as one of the top desired destinations in the Caribbean, said Greg Salley.
St. John is one of the three islands that compose the US Virgin Islands. More than half of the island is covered by the Virgin Islands National Park providing abundant natural beauty. St. John has some stunning beaches, with clear blue waters and stark white sands. US citizens can travel there without a passport.
The latest home the Equity Platinum Fund added to the portfolio is a Bali inspired seaside villa in Cruz Bay with expansive views of the Caribbean Sea. Designed by a local star architect Michael Milner, the home was also featured in the New York Times Real Estate section.
“The home embodies all the best characteristics visitors seek when they come to St. John.” said Greg Salley. It is situated on a 1.1 acre lot surrounded by a private lush garden. One of the master bedrooms opens onto a veranda facing the water; another opens into the garden.
John Long notes that Equity Residences investors enjoy cooking their meals with family and friends on vacations, and this house delivers on their expectations with a chef’s kitchen and a breakfast bar.
This house is outfitted with an infinity-edge pool. You can sit in the pool at night and enjoy views of lights on St. Thomas in the distance. And, the villa’s location in Cruz Bay allows visitors to get to some of the best restaurants and beaches on the island within minutes.
Equity Residences says they consider this home a smart investment, not only because it is located in a highly desired destination, but because it is expected to generate high rental income for the Fund’s investors to offset operating costs. The private equity fund negotiated a price that is well below current neighborhood comps for local sales.
“Even amid a robust real estate market, we are finding value for our investors. We believe this investment will generate lifestyle and financial returns for our investors for years to come.” said Greg Salley about the acquisition.
He continued “We use our expertise not only to identify attractive acquisitions, but to improve homes we already have in our possession to achieve higher cap rates. This St. John residence is no exception. The lot will allow us to add two additional bedrooms, increasing its uniqueness on the rental market and bringing cap rates up to 9%-10%.”
Equity Residences Platinum Fund is an equity destination club and owns homes in Costa Rica, Italy, the Dominican Republic, Hawaii, and Florida. The Fund plans to add additional destinations in 2019.