Equity Estates - destination club thrives with fiscal transparency

While the economy takes its time to recover from recession, the destination club Equity Estates is thriving, with 30 new members since the start of 2009 and two more luxury properties in its portfolio -- one in La Jolla and another in midtown Manhattan near Times Square (pictured above.)

CEO Philip Mekelburg calls Equity Estates a luxury residence fund."We re typically cash buyers of homes – we leverage the minimum amount of 23 percent," he told me not long ago. As a result, the company has remained in sound financial condition while other larger, highly leveraged clubs struggled, he said.

Mekelburg points out that Equity Estates is dedicated to fiscal transparency so members know their money is safe. The company puts 80 cents of every dollar into real estate, compared to the 50 % level maintained by some other clubs. It now has 10 residences, with an average price of $3 million. Full members are entitled to 30 nights a year in any of the properties, while executive members get 15 nights.

But perhaps the most unusual thing about Equity Estates is that it has an exit strategy. Starting in 2021, says Mekelburg, the club will start selling off its properties and distribute the proceeds among its member owners. Full membership requires a capital contribution of $375,000 to join. Its properties are in typical luxury vacation areas, such as Turks and Caicos (Caribbean) Deer Valley (Utah) and Hilton Head (South Carolina).

No Joke! Hot Vacation Home Expo Panels

The first-ever vacation home expo starts in less than two weeks, and these panels scheduled for the Atlanta event sound like must-attends:


“What’s New in the Popular Self Drive Vacation Destinations,” moderated by Keith Sisson, associate publisher for Y’All Magazine. Speakers, ll execs from CVBs in Orlando, Panama City Beach, Hilton Head and Gulf Shores.



“Beyond the USA: Discovering Great International Apartments, Villas, Cottages and Vacation Homes,” moderated by John Newton, news editor for Travel + Leisure. Panelists: Simon Lehmann, CEO for Interhome, Mike Thiel, founder of Hideaways International and Dan Conaway, president of Elegant Adventures.



Dates: Fri/Sat/Sun April 11, 12, 13. Click here for more info.

No Debt: BelleHavens' Smart Club Pitch

The destination club BelleHavens, which is in the same deluxe class as Exclusive Resorts and Quintess, has a unique selling point that should appeal to mortgage-wary travelers: the homes in its portfolio are owned by members rather than the club's overseers, and are debt-free. BelleHavens thus calls itself the first "equity membership" club with asset protection as a key factor. That doesn't mean that visits to properties such as those at La Quinta, CA (shown); Palm Coast, FL; Kohala Coast, Hawaii; Hilton Head, SC; Los Cabos, Mexico; and midtown Manhattan come cheaply. The current price of a BelleHavens Equity Membership is a one-time deposit of $225,000 and annual dues of $18,500. Still, that means a reasonable average price of about $615 per night based on 30 nights annual usage. And peace of mind? Priceless.

Are Multi-Generation Compounds a Trend?

Family-style second homes may be the Next Big Thing in housing. According to the Wall Street Journal, builders are offering "compounds," or lots on which a comppound of more than one house can be built, in several parts of the country. The article cites Crescent Resources in Charlotte, N.C., which has sold 80 compound lots in Lake James, and has similar communities on the drawing board including Palmetto Bluff near Hilton Head, S.C. The idea is for different generations to have a place to build their own vacation houses even if they don't have the kind of money that Kennedys and other famous families have used to build their own compounds. In Lake James, one family paid $400,000 for a 15-acre lot. Near Bethel, N.Y. in the Catskill Mountains, Chapin Estate lots run from $155,000 for a wooded five-acre lot to $1.3 million for eight acres on a lake, all zoned for multiple dwellings.