From an Investor to a COO
Dion has been an Equity Residences investor for almost a decade, and in 2024, he stepped into a new role as Chief Operating Officer of the company.
As an investor in both the Equity Villa Fund and the Equity Platinum Fund, Dion took 48 trips in 9 years through the funds and affiliates ThirdHome and Elite Alliance, amounting to about $480,000 worth of vacations, or $53,000 a year.
We asked Dion to tell his story of how he went from being an Equity Villa and Equity Platinum Fund investor to becoming COO. He told us it was his fondness for Captiva, Florida, that set him on the path.
Q: To get things started, why did you initially invest with Equity Residences?
“Our family of four had been renting properties with our friends for various combined family vacations. After spending upwards of $10K per week at the time, I explored various vacation membership options and became aware of Equity Residences’ equity-based model and was intrigued. We did our own due diligence and cost/return analysis, deciding to make a multi-unit investment in the Villa Fund in 2015. We subsequently made a multi-unit investment in the Platinum Fund in 2017. For us, it has delivered many times over from both an investment perspective and from a lifestyle perspective.”
Q: Tell us what path you took to becoming the COO of Equity Residences?
“My wife Michelle and I had the opportunity to stay at the Villa Fund’s Captiva House for a month-long stay in the summer of 2019. Needless to say, I became very familiar with the property. Following our own purchase of a part-time to full-time property in Fort Myers FL that December, I found myself providing periodic assistance to the Fund on addressing some of the larger property repair activities of the Pink House. Simply said, I was local to the property and was happy to help protect and enhance the value of our fund’s investment.”
“When Hurricane Ian struck Southwest Florida in Sept 2022, I reached out to John (Managing Director John Long) to see how I could assist. Access to the island was severely limited due to the extensive infrastructure damage to the island, but as a partial owner, I was able to secure a county access pass. While the property was not destroyed, there was still significant damage.”
“I got back to John and explained the realities of the situation: the renovation would be very challenging given that the limited labor pool would be in very high demand, and on/off access to the island was being strictly controlled to prevent nefarious activities. Managing this from a distance was going to be extremely difficult; you needed a local person. John agreed and I took the lead in finding contractors, evaluating them, and working with the general contractor to get it up and going. The effort was completed just before Thanksgiving of 2023.”
“This effort led to a discussion with John and Greg [Managing Directors] about helping Equity Residences with other properties. I was giving retirement “a try” at the time following a long career as an IBM executive, as well as two other stints as a COO for a services firm and CEO for a mobile app start-up. While retirement had its benefits, my wife is still working and I found myself in need of broader involvement and activity. For me, it was the combination of joining a team that has a proven business model and working on projects that are both challenging and rewarding. Besides, when necessary, the work locations can be pretty awesome.”
Q: You’ve had experiences as both an investor and in operations. What are your favorite properties from the investor perspective besides Captiva?
“The ones that intrigue me personally, which I haven’t visited yet, are the Mauna Lani residences we acquired in 2024. My wife and I had an opportunity to stay at the Mauna Lani Resort for a corporate event. I loved the area and the Big Island. We walked by the villas, knowing we were in the process of acquiring two three-bedroom homes in the gated community. The beach club associated with the Mauna Lani villas, the location, the diversity of activities on the Big Island, and the convenience and proximity to the airport make those great locations. For Hawaii destinations, those are bar none.”
“From a mountain perspective, I really like Lake Tahoe. Two years ago, we stayed there in the summer and hiked around Lake Tahoe. They have great vistas and walks; it’s a great summer location. We want to go back in the winter but haven’t yet. Being on the hill, skiing down to the lift, ski-in and ski-out—what’s not to like? Close proximity to the Ritz, access to the Treehouse clubhouse —it’s a wonderful property as well.”
Q: Can you give us insight into operating Equity Residences homes? What about energy costs, local taxes, and local customs?
“As we can all assume, utility costs can be very high in some island locations. We have annual utility costs exceeding $30,000 a year for some homes in locations like Exuma, St. John, and Turks and Caicos. We are exploring options for implementing solar solutions, with some completed and others underway.”
“From an ownership perspective, managing part-time ownership from afar is very difficult. Our shared ownership model builds relationships with property managers and cleaning crews, accessing their skilled labor through them and our own relationships. That would be very difficult if you were a singular homeowner dealing with it alone. If you’re exploring that option, be fully aware that it’s a tough job.”
Q: How are you able to reserve the places, and how does access to the homes and the fund work?
“For Equity Residences homes, there are two reservation periods. One is for the holiday period, occurring in the February-March timeframe. The reservation year in Equity is October 1st through September 30th. High-demand weeks, like New Year’s, Christmas, and Easter, are requested in February and March. You will know well in advance on whether you successfully secured your requested property for the specific week; the team works with partners if they have some additional flexibility. Then, there’s a second wave of partner reservation requests in May. You can request reservations for up to five or six properties, depending on your credits.”
“Overall, finding a property that matches your desired week is flexible. Once those reservation periods are done, you have open access to the calendar of all properties to see what’s available. For our family, we also consider airfare costs in assessing weeks and locations to find the best overall option. We put that power into your hands to make the best decisions for you.”
Q: As a COO and an investor, what can partners expect once they get to our homes, specifically the Equity Platinum Fund and Equity Platinum Fund 2 Homes? Any recommendations?
“The Equity Platinum Fund properties now total 23. We’ve tried to create a diversity of locations and experiences for our partners. From Hawaii to Greece, we have great opportunities. We work with property managers to ensure a well-furnished, well-presented, and well-maintained home that offers all the conveniences of renting but at a notch above that.”
“We provide welcome baskets for our partners, local in nature, to give you a flavor of the experience. Prior to arrival, you’ll get information about services and adventures if you’re inclined. There’s an online guide for each property, with recommendations for restaurants and other activities, and a point of contact for any questions or concerns during your stay. We’re always looking to improve those experiences and enhance our capabilities. You’ll have a consistent experience with our Equity Residence properties, walking away saying you had a wonderful time, with access to information about the house’s functionalities and equipment, and an overall great time.”
Q: As a partner, you’ve traveled to Tahoe and Captiva, your favorite properties. Are you going to miss Captiva [after the scheduled liquidation], having stayed there multiple times?
“As referenced earlier, we purchased a home in Fort Myers FL property and it has become our primary residence. Thankfully for us, Captiva remains a short drive away. Having said that, we will always have a soft spot for the Pink House. As John and Greg identify properties with great locations, we look forward to finding new “favorites” that are both enjoyable and deliver upon the financial model that benefits the partner’s investment over time.”
Q: As an Equity Villa Fund partner right before liquidation, what do you consider your return to be?
“At the highest level, I am a multi-unit investor in the Villa Fund. I view my investment as receiving a vacation dividend instead of a cash dividend. Before our investment, we spent $10,000 a week in the mid-2010s renting vacation properties for our family or friends. This vacation dividend was our primary damage, with capital return as a secondary factor. We successfully leveraged the utilization of our credits to have fantastic vacation experiences throughout the ownership period. With our likely capital investment return delivering 1.5-1.7x, we are very pleased with the overall return.”
“We became multi-unit investors in the Platinum Fund, looking at the investment as yielding vacation-oriented interest and expecting a similar capital return. The team identifies well-placed properties with good future return on investment opportunities, and I have high confidence in receiving a similar return on the Platinum Fund.”
