Equity Estates Luxury Residence Fund: A Worldly Investment

Luxury Residence Funds: For those who love to travel yet value a solid investment, Equity Estates offers a Luxury Residence Fund that combines the best of both worlds. The company, which has been serving the needs of its affluent clients since 2006, allows accredited investors the ability to own and enjoy luxury residences across the globe.

By structuring its membership as an equity interest, each member is essentially the owner of the portfolio of luxury vacation homes acquired by the fund. This unique opportunity allows members to take advantage of a wide array of benefits, including shared ownership of multiple three-to-six bedroom residences, the support of a five-star concierge team, as well as any appreciation of the real estate if and when it is sold.

Not only does Equity Estates feature properties in some of the most highly sought-after destinations throughout the United States, Italy, Mexico, and Turks and Caicos, but it has also recently added 18 new properties across Europe, the Mediterranean, and Africa. Members can vacation in Provence, France, hit the slopes in Terlluride, Colorado, or relax on the beaches of southern Spain and enjoy access to world-renowned golf courses.

Before adding a property to its portfolio, Equity Estates carefully considers each residence by assessing structural integrity, evaluating the design, mechanical and architectural elements, and reviewing each property’s uniqueness, landscaping, views, interior details and appointments.

Each stunning property — which often spans anywhere from 3,000 to 6,000 square feet — holds an average value of $3 million and is beautifully appointed with decorative furnishings, state-of-the-art technology, and of course all of the lavish amenities one would expect from a five-star resort. Like a five-star resort, each vacation comes complete with a world-class concierge team who is equipped to handle everything from transportation, itinerary planning and stocking the fridge, to arranging child care or securing reservations and tickets to the hottest local restaurants and shows.

According to Adam Capes, president of Equity Estates, the whole experience begins with the Personal Travel Concierge (PTC), who not only caters to the preferences of the individual clients, but also extends the same hospitality to the entire family.

“(The PTC) has even planned two destination weddings, a host of anniversary celebrations, and a good number of 'landmark' birthday parties,” says Capes.

From the PTC and the dedicated Local Host to the satisfaction surveys and Operations Coordinator, the unsurpassed level of service is maintained from beginning to end.

Unlike other leading destination clubs, which only offer a handful of residences, the Luxury Residence Fund boasts 30 properties around the world and plans to expand its already impressive portfolio.

“We are very well positioned to take advantage of historically significant discounts to purchase luxury vacation residences ‘at or near the bottom’ of the market cycle. We expect to purchase four to six new homes in 2010 in such destinations as Napa Valley, Vail/Beaver Creek, Deer Valley, Los Cabos, and Playa del Carmen,” says Capes.

With the company’s open book policy, 80 percent of capital contributions are placed into a real estate acquisition account, whereas a typical timeshare, fractional or destination club might designate 50 percent or often times less. The remaining 20 percent of capital contributions are placed in an operating fund, which are used to cover sales, marketing, legal and other fund-related expenses. This unique model has proved successful, seeing a 50 percent growth in 2008 and a solid 50 percent growth again in 2009.

According to Capes, most luxury residence funds offer the ability to vacation for 15, 30, 45 or 60 nights per year and are not tied to specific weeks. Whether someone decides to stay in New York City for just one night, and in Hawaii for 10, the fund’s flexibility allows members the option of breaking up their time as they see fit. The flexibility that comes with choosing a luxury residence fund over a timeshare is just one of many benefits, but the fact that the fund is an investment ultimately ranks supreme.

“Timeshares are not investments, while luxury residence funds offer the ability to invest in a diversified portfolio of luxury real estates and take advantage of the wonderful buying opportunities that currently exist,” says Capes. "At the same time, a specified liquidity target date allows participants to incorporate such an investment in 'memorable experiences' into their overall financial plan.”

Annual dues range in price from $9,250 to $24,750 with capital contribution rates ranging from $197,500 to $549,000. With the Executive Membership Interest Plan, members can travel 15 nights per year; the Elite Membership Interest Plan includes 30 nights per year; and with the Advantage Membership Interest Plan, members are afforded 45 nights per year at any of the luxury residences.

Backed by strict standards of service, Equity Estates is the premiere choice when it comes to investing in one’s future. Why limit yourself to just one or two vacation properties when you could be enjoying five-star amenities worldwide, all the while building a solid investment portfolio?

Deer Valley, UT
Hilton Head, SC
Hilton Head, SC
La Jolla, CA
La Jolla, CA
Naples, FL
New York Midtown West
New York Midtown East
Telluride, CO
Turks and Caicos
Turks and Caicos
Wailea, HI
WaterSound Beach, Fla

Christina Stewart

In her role as managing editor, Christina has developed a keen eye for all things luxury and is considered by many to be an expert within her field. Christina has covered a wide range of luxury lifestyle topics and finds passion in international travel, fast cars, and fabulous handbags. She graduated from San Diego State University in 2005 with a degree in both journalism and English. While attend...(Read More)

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