Accredited investors who enjoy traveling to luxurious destinations and prefer to own a portfolio of homes instead of renting them should take a look at Equity Estates, LLC. This new destination club has recently launched and offers luxury vacations and a promising end goal for investors.

Beaver Creek

"We developed our model by looking at how a small group of friends would share a number of vacation homes without sacrificing the value of concierge support," says Philip Mekelburg, CEO. "Our owner members are partners in every way."

The club has a family-friendly approach to business. They encourage families, friends and businesses to share membership interests - just as if they went in together to purchase a multi-million dollar home on their own. If you're trying to understand the differences between owning a second homes and joining a club read the article "Vacation Homes Compared to Destination Clubs".

The Homes

Equity Estates currently has seven destination choices in its portfolio of $2.5 to $3 million dollar homes. As a foundation, the company offers vacation homes in major resort locations and cities where other successful destination clubs have residences. As the portfolio of homes expands, management will stay flexible and take owner member feedback into consideration when researching and adding new destination choices.

Fund 1's properties are located in New York City, NY, Beaver Creek, CO, Deer Valley, UT (pictured above right), Los Cabos, MX, The Turks and Caicos, Naples, FL, and Inlet Beach, FL (pictured below). Residences have 3 to 6 bedrooms and range from 1,600 to 6,000 square feet. On average the homes can accommodate 8 to 12 family members and friends. Once Fund 1 secures 300 full memberships and has 50 residences in about 35 destinations, the member to home ratio will be 6:1. The company has already grown to 40 owner members, representing 30 "Full Memberships" (see the membership table below).

Florida Beach HomeServices & Amenities

As with nearly all other destination clubs, one aspect that owner members enjoy is a two-point concierge support system. The core support begins with a Personal Travel Concierge assigned to each owner member. These full-time staff members are dedicated to assisting members with all pre-trip logistics including stocking the refrigerator and itinerary planning. A second level of support is extended as local hosts welcome guests at each residence and arrange for all last minute vacation-time desires.

Amenities included in annual dues are daily housekeeping, pre-stocking of the refrigerator and bar, itinerary planning and access to any resort amenities unique to each destination. "Private chefs and other specialty services are arranged at cost which run the gamut from private beach lobster bakes under the stars with bonfire, roasted marshmallows and live music to intimate private candle lit dinners," explains Mekelburg.

Membership Fees

Memberships are available to accredited investors only.

Membership Level Founding Memberships (Full Shares) Executive Membership (Half Shares)
 Membership Fee $325,000 $172,500
 Annual Dues $16,500 $9,250
 Included Nights 30 15

*Annual dues cover daily housekeeping, two points of concierge support, all taxes, insurance, upkeep and maintenance.

Equity Estates offers a first come first serve reservation policy which allows members to book out as far in advance as they wish and unaccompanied guest usage is allowed. Peak holiday travel is equitably allocated through a lottery system.

The End Goals

The year 2021 marks the selling off point for residences in Fund 1. Upon liquidation, the owner members receive back all of their principal capital contribution and then 80% of the appreciation of the entire portfolio of homes. "Upon liquidation of Fund 1, enough appreciation can be reached to have owner members paid to travel to multimillion dollar luxury homes around the world between now and then," says Mekelburg.

By staying debt free, as they are now, and only allowing for a minimal amount of company indebtedness (up to 30% net asset value according to their operating agreement), Equity Estates provides a conservative, safe and fun way to own and enjoy luxury multimillion dollar homes around the world.

The Management Team

Equity Estates has over 100 years of combined experience in luxury real estate, hospitality, securities law, finance and member services amongst its executive management and advisory board personnel. The executive officers of Equity Estates, LLC are Adam Capes, president; Philip Mekelburg, CEO; Tim Trankina the third member of Equity Estates, LLC; and Chris Rosa, VP of Operations of Equity Estates Fund I, LLC.

If you're looking at joining a destination club our comparison table lists all the major clubs and is a great starting point.