Equity Estates announced the launch of Equity Estates Fund V, LLC (“Fund V”), a new $50 million opportunity for investors to own and enjoy luxury real estate. Founded in 2006, Equity Estates is a Luxury Residence Fund, an alternative investment offered via private placement to accredited investors.
Fund V plans to acquire 12 multi-million-dollar vacation homes in the most popular destinations worldwide. A typical Equity Estates residence is in sought-after beach, mountain, leisure, or city destinations. Target destinations for Fund V include Paris, Southern California, Deer Valley, Tuscany, Los Cabos, Hawaii, Whistler, the Caribbean, and more. Each Fund V residence will cost between $2 and $6 million. Liquidation of Fund V is targeted for 2033, and the distribution waterfall will provide the lion’s share of appreciation to investors – after 100% of investors’ initial capital is returned – assuming the properties appreciate as expected.
Over the last 15 years, Equity Estates has raised and deployed over $180 million in capital contributions. Fund I, which sold out in 2012, entered the liquidation process in Q3 2021. Estimated returns on the sale of Fund I properties are almost 140% of appraised values taken within the past year. Many Fund I investors have already committed to investing in Fund V and continuing their relationship with Equity Estates. In fact, Fund V is already past its minimum to break escrow and begin buying properties. It is also headed toward a sell out in 2022.
Philip Mekelburg, CEO and Founder of Equity Estates, shared, “Trust is an important part of investing, and we are thankful to all of the investors who have trusted Equity Estates since our inception more than 15 years ago. We are grateful to be launching Fund V on the heels of Fund IV’s sell out in record time. Our real estate team is already focused on key destinations, and we plan to announce our first Fund V property acquisition in early 2022.”
Travel habits across the United States have been evolving over the last decade; however, the last year and a half has brought an accelerated, significant shift in behavior. More than ever before, travelers are looking towards private residences to keep their distance and improve comfort and safety. In addition, savvy investors have long considered real estate to be a good hedge against inflation. Federal Reserve Chairman Jerome Powell recently acknowledged that inflation pressures “are likely to last longer than previously expected.”
For these reasons, Fund V is an attractive option for accredited investors seeking to bring more meaningful returns on capital and life.
About Equity Estates
Equity Estates is a Luxury Residence Fund for accredited investors offered via private placement that provides investors the opportunity to own and enjoy luxury real estate. As a vacation home alternative, Equity Estates is a globetrotter’s dream, spanning more than 25 countries around the world. Equity Estates Fund I sold out in 2012, Fund II sold out in 2016, Fund III sold out in 2019, and Fund IV sold out in 2021. Since 2006, Equity Estates has collectively raised and effectively deployed more than $180 million and delivered over 20,000 outstanding vacation experiences. For more information, visit www.equityestatesfund.com.
Source: Equity Estates Investor Relations, LLC