Luxury vacation residence club Equity Estates launched its third fund almost a year ago. It’s already bought five homes for the fund investors. In addition, it is organizing custom expeditions for the investors and their families.
Fund III plans to raise $40 million in capital contributions and is halfway sold out at the time of writing. It will use the contributions to acquire luxury vacation properties around the world. Investors in the fund will own a share in the portfolio’s residences and will be able to access properties in the other two earlier portfolios (Funds I and II) through a reciprocity agreement. All properties that are in this third fund will have a value of between $2 million to $5 million. While this latest fund is early in its existence, it has a planned lifetime of 12 years, so the fund will start to liquidate its portfolio in 2029 and will then return funds and any profits to investors.
So far, five properties have been acquired for the third fund, in destinations including New York, Vail, and Aspen.
The New York property promises “Manhattan living to the highest level.” The two-bedroom, two-bathroom residence offers 24-hour concierge, a private bowling alley, fitness center, rooftop club, pool, and breathtaking views across the Manhattan skyline (pictured above).
Meanwhile, in Aspen, stay in a four-bedroom townhouse on the edge of town, complete with chef’s kitchen and easy access to the ski slopes. It’s an easy stroll to Aspen's core, where you'll find a wide variety of dining and shopping options.
Lastly, the Vail property is a three-bedroom, three-bathroom luxury condo in the exclusive Lionshead Village. Ski slopes, restaurants, and entertainment are all within walking distance. Residents also have access to a steam room, hot tub, and indoor/outdoor pools (pictured below).
Both of the Colorado properties are undergoing complete renovations to ensure they meet Equity Estates’ high level of excellence.
The locations of the other two properties that have been acquired will be made public soon. An additional five or six properties are intended for the portfolio. These will include residences in London, the British Virgin Islands, Florida, Jackson Hole, and Maui.
Earlier Funds Background
Equity Estates' first fund sold out in 2012 after raising more than $60 million in investments. The sale of the properties in this first fund is due to begin in late 2021. Fund II sold out at the end of 2016 after raising more than $30 million in capital. That fund is planned to begin liquidation in 2025. After the properties in each fund are sold, all net proceeds are distributed among investors so that they receive back 100% of their investment. Then they receive 80% of any additional profits.
The current property portfolios across all the funds include luxury residences in such destinations as Napa Valley, Turks and Caicos, Florence, Italy, and some of the United States’ most exclusive ski areas. As well as access to the expansive portfolio of homes, investors also have the opportunity to participate in luxury expedition vacations, organized by Equity Estates. Upcoming trips include:
- A multi-sport glamping adventure in Montana and Yellowstone National Park in July 2018.
- A chance to indulge all five senses in Tuscany in September 2018. This trip is being repeated due to its previous popularity.
- Another chance to indulge the senses on the Amalfi Coast in spring 2019.
- A European River Cruise and Oktoberfest in September 2019.
- A luxury African safari in the summer of 2020.
Several other destination clubs and luxury residence funds offer similar expeditions to their members. In addition to traveling to some exciting locations, its also a way for members to meet each other.