Equity Residences manages private investment funds that own multiple vacation properties, which are enjoyed by the funds’ limited partners. They recently closed their first fund to new investors and have started funding their second investment fund.

The Villa Fund I closed on March 31st having reached its target of 100 investors. This fund, which has been buying homes valued at around $1 million each, currently owns 11 properties. Fund Manager Greg Salley said plans call for the addition of one more home to Villa Fund 1 with the likely location being either Puerto Rico or Mexico. This final addition to the fund will complement homes in Hawaii, Florida, Park City, Utah, Palm Springs and Mammoth Village, California. These original 11 Villa Fund homes have already appreciated by 37%.

Greg also noted that Equity Residences’ new Platinum Fund has attracted investments from Villa Fund 1 limited partners based on the success of that fund. The Platinum Fund will acquire homes with an average value of about $2.5m and has properties under contract in Hawaii’s Mauna Lani resort, Punta Cana resort in the Dominican Republic, and Northstar resort at Lake Tahoe, California. An additional East Coast location is expected to be added soon. Over time, the Platinum Fund will raise $50 million to acquire 20 strategically located, luxury vacation residences.

Investment units in the Platinum Fund start at $250,000 and provide up to three weeks of vacations each year at the Fund homes. Vacation home occupancy not allocated to Fund partners is rented to defray operating costs. Partners also have the option to forego vacation use and benefit from a rental dividend in addition to the expected appreciation of the homes. Investors in the new Platinum Fund can also enjoy vacation homes included in the Elite Alliance and 3RDHome portfolios.