Substantial Growth Experienced In 2009 By Equity Estates And An Even Stronger 2010 Projected
Luxury residence fund posts overall growth of 40 percent, ends year with 30 vacation residences for owner members
Equity Estates www.equityestatesfund.com, the largest and fastest growing luxury residence fund in the country, announced today that the company posted significant gains in 2009, both in terms of new owner members and residences. Equity Estates’ owner members grew by 40 percent in 2009, and the company went from having seven homes at the beginning of the year to 30 homes available by the end of 2009.
“I think our growth is extraordinary given that 2009 represented not only the largest downturn ever in the sector, but perhaps the worst overall year in recent economic history,” said Adam Capes, co-founder of Equity Estates. “Our success is a testament to our unique model and our commitment to creating outstanding vacation experiences.”
Equity Estates added more than 30 owner member families representing 21 full membership equivalents, an overall growth of more than 40%. Much of this growth came in the last quarter of 2009, with the company adding seven new owner members during that time. In addition, one fourth of those new owner members were previously members of other destination clubs, further evidence of Equity Estates’ model being the best in the sector.
The company added handsomely to its residence portfolio in 2009 as well. Last year Equity Estates spent over $8 million on the purchase of two trophy residences in Hilton Head, South Carolina, and Telluride, Colorado. A strategic alliance formed with the largest residence fund in Europe, The Hideaways Club, allowed Equity Estates to become the largest global portfolio of residences available in the U.S. through an equity-based model. The portfolio now has 30 properties in 23 destinations and spans 13 countries.
Equity Estates also managed to reduce leverage in 2009 to below 20% of total assets, and expects to be debt-free by the end of 2010. They also are the only company in the industry that does not currently have anyone trying to get out—a zero person resignation list. Overall, the luxury residence fund could not be in a better position.
“We ended 2009, a perilous year for many, at the top of the industry in regards to performance and yet see endless opportunities for success in 2010 and beyond,” said Philip Mekelburg, co-founder of Equity Estates. “Our growth this past year shows that we are not only the most successful organization in the luxury second home alternative industry, but by far the model that most appeals to savvy buyers.”
About Equity Estates
Equity Estates is a luxury residence fund designed to offer spectacular homes and outstanding vacation experiences in addition to a real estate investment opportunity. Membership is structured as an equity interest in the fund that owns the vacation homes and offers use of these residences, in addition to appreciation when the homes are sold. Strict covenants on use of proceeds, financial transparency including an annual audit, strong management and a commitment to service are hallmarks of this fast-growing company. Founded by managing members wanting to offer all the benefits of second home ownership with none of the hassles, Equity Estates is the smartest way to own and enjoy luxury vacation homes around the world. For more information visit www.equityestatesfund.com or call (800) 413-3340. For media inquiries, please contact Alana Morris at Alana@vocapr.com or (303) 962.9163.

