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Own a second home in the Mauna Lani Resort, Hawaii without the cost of maintaining one. Build memories together with your friends and family. Create family traditions in your luxury vacation home and travel the world when you are not there.

Invest in a private equity fund with a defined liquidation timeline and a clear investment roadmap to create value for you and your family.

Invest in a luxury home located inside the premier Mauna Lani Resort on the Big Island of Hawaii

Investment Story

Hawaii’s Big Island offers the perfect market conditions for Equity Residences to create both the vacation and the financial value for our investors. The Mauna Lani Residence Fund offers investors a differentiated real estate investment opportunity that is primed to generate annual returns in an under-supplied short-term vacation rental market.

The Laule’a community in the Mauna Lani Resort is home to our new residence. By working directly with the community’s developer, we have secured reduced pricing for an ocean-view home along the Francis I’i Brown Golf Course. Our exclusive discounted entry price on this new home will enhance the appreciation potential that is already expected as the Mauna Lani Resort approaches new construction capacity. As owners of the home, our investors will be entitled to their share of this appreciation at the end of the Fund’s 12-year life.

Thanks to its welcoming climate, the Big Island has high demand year-round for short-term vacation rental homes. The supply of short-term rentals, however, is constrained by regulations that restrict the number of vacation rental licenses that can be issued on the island.

The homes in the Laule’a community have been granted rare, deeded vacation rental licenses. As a rare rental commodity, this puts the Mauna Lani Residence Fund in a position to generate high rental income that can be used to cover investors’ operating expenses and even generate annual rental dividends. The home’s deeded vacation rental license will also be an important point of differentiation when the time comes to sell.

While the Mauna Lani Residence Fund shows the potential to generate healthy financial returns, we recognize that this opportunity is also a lifestyle-driven investment. Luxury homes in exclusive resort communities are expensive to purchase and own, as is the cost to rent a luxury home for your vacations. At 10% of the cost to buy your own home, the Mauna Lani Residence Fund gives investors the benefits of homeownership without the hassles and costs that go along with it.

Each investor has the right to five weeks of usage per year, representing up to $60,000 in tax-deferred vacations. Feel free to spend all five weeks enjoying the home, or deposit as many weeks as you like for us to rent on your behalf. Use rental proceeds to offset your annual operating fee or even pay yourself a rental dividend. As an owner, the choice is yours!

Owning a luxury vacation home through the Mauna Lani Residence Fund means sharing in your investment’s appreciation and annual rental potential. Timeshares, destination clubs, and fractionals can’t offer those advantages, but Equity Residences can. Ask us for more information on how you can invest in a luxury vacation home on the Big Island that pays financial and lifestyle dividends.

Ask us how performing a 1031 exchange into the Mauna Lani Residence Fund can provide an added boost to your investment’s returns.

A single residence with

  • 4 bedrooms
  • 4.5 bathrooms
  • 4100 total square feet

Amenities

  • Private heated pool and spa
  • Access to a private Mauna Lani Beach Club
  • Access to all Mauna Lani golf courses
  • Personal concierge
  • 4 bedrooms
  • 4.5 bathrooms
  • 4100 total square feet
  • Private heated pool and spa
  • Access to a private Mauna Lani Beach Club
  • Access to all Mauna Lani golf courses
  • Personal concierge

Investment Overview

Minimum Investment

$355,000

Projected Net Vacation Savings Over 12 Years

$425,000

Projected Gain On Real Estate Over 12 Years

$150,000

Projected Total Return Over 12 Years

$575,000

Projected ROI

160%

$355,000

$425,000

$150,000

$575,000

160%

Why The Mauna Lani Resort Residence Fund

Convenience

We handle the acquisition, management, disposition and concierge services for you and your fellow investors

Shared Cost

Investors share the costs and benefits of ownership until the defined liquidation date in 12  years.

Investment upside
  • Investors own equity in the home and receive capital back when the home is sold, including anticipated appreciation.
  • Investors have an ability to perform a 1031 exchange into this residence
Travel the world with one investment

Exchange your time at the Mauna Lani Residence Fund to any of the Equity Villa Fund, Equity Platinum Fund, ThirdHome, or Elite Alliance vacations

Alternative to second home
  • Spend up to 35 days a year on the Mauna Lani Resort
  • Invite your friends a family to vacation with you or send them on their dream Hawaii vacation
  • The home is yours with none of the hassle of owning a second home

We handle the acquisition, management, disposition and concierge services for you and your fellow investors

Investors share the costs and benefits of ownership until the defined liquidation date in 12  years.

  • Investors own equity in the home and receive capital back when the home is sold, including anticipated appreciation.
  • Investors have an ability to perform a 1031 exchange into this residence

Exchange your time at the Mauna Lani Residence Fund to any of the Equity Villa Fund, Equity Platinum Fund, ThirdHome, or Elite Alliance vacations

  • Spend up to 35 days a year on the Mauna Lani Resort
  • Invite your friends a family to vacation with you or send them on their dream Hawaii vacation
  • The home is yours with none of the hassle of owning a second home

Frequenty Asked Questions

  • What is the Mauna Lani Residence Fund?

    The Mauna Lani Residence Fund is a real estate private equity fund that enables investors to own a luxury vacation residence on the Big Island of Hawaii with long-term capital gains potential. The home is located in the Residences of Laule’a, a private development within the exclusive Mauna Lani Resort. As equity interest holders, investors own the Fund residence and have a long-term interest in the home’s expected appreciation. In addition to financial returns through appreciation, investors enjoy the lifestyle dividend that comes with “rent free” vacations at this luxurious resort home. The acquisition, management and disposition of the home is handled for you by the General Partner, so investors can focus on enjoying time spent with friends and family.

  • How does the Mauna Lani Residence Fund differ from timeshares, fractional ownership, destination clubs and whole home ownership?

    Timeshares are typically a points-based or right-to-use, one-week product that are, in essence, a pre-purchase of future vacations. They depreciate dramatically upon purchase due to the extremely high marketing and sales costs imbedded in the price.  Even at drastically reduced prices, resale options are very limited.

    Fractional ownership, including private residence clubs, does not provide a coordinated liquidation event. After project sellout all owners are responsible for their real estate sale and are competing with other fractional owners in the resale market. Many private residence clubs prohibit rentals that could help defray carrying costs.

    Most destination clubs are not equity investments. They sell a right-to-use membership requiring a significant deposit that is usually backed by the company’s promise to return a stated percentage of the deposit (often 75%). The deposit may or may not be secured by real estate assets. The only resale option is through the destination club company, which is highly motivated to sell company-owned memberships, not the members’. The annual membership fees of most destination clubs are considerable and do not provide a significant savings over rental of luxury homes.

    We’ve found that, on average, vacation homeowners use their second homes for 30 days or less out of a year but are burdened by annual maintenance, management and holding costs. If homeowners decide to rent their house, there are property managers and renters to deal with requiring extra time, effort and maintenance costs.

    The Mauna Lani Residence Fund provides second home ownership while eliminating all the hassles and most of the expense. The Fund will own and operate its real estate investment with a high probability of appreciation during the 12-year “hold” period. Like other real estate, it is possible to sell your Fund Units through a transfer, potentially at an appreciated price. Since we are a Trust, there is no ‘middleman’ structuring the transaction and requiring its own return on investment.

  • Does the Mauna Lani Residence Fund accommodate 1031 exchanges?

    The Mauna Lani Residence Fund is structured as a Delaware Statutory Trust. The DST structure allows the Mauna Lani Residence Fund to accommodate investors’ 1031 tax deferred exchanges. Through the DST, investors share ownership in the real estate with title held by Equity Residences as the Trustee. In addition, the DST structure limits the liability of investors with respect to the debts and obligations of the Trust, while providing an optimal tax structure for flow-through gains and losses.

  • What will the Fund own?

    The Fund will own one residence in a private community within the Mauna Lani Resort. The residence encompasses 2800 interior square feet of living space with a total of 4100 square feet, with four bedrooms that can accommodate up to eight people, plus four and a half bathrooms. The residence is situated along the Francis H. I’i Brown Golf Course, with a view of the Pacific Ocean from the lanai. The residence is one side of a townhouse-style duplex on two levels with a private garage and a private pool and hot tub. As owners, investors have access to a luxurious private beach club, the Mauna Lani Golf Club and the Mauna Lani Sports & Fitness Club.

  • How often can investors enjoy the Fund Residence?

    As often as they wish, subject to the Fund’s reservation policies. With each Unit purchased, an investor can enjoy five weeks of Planned Vacations.

    After the Planned Vacations are confirmed, investors can reserve additional lodging. With only ten investors per residence, there is abundant availability throughout the year. If some investors use less than their available time, other investors can use the home more. This enables investors to take advantage of the year-round favorable climate on the Big Island.

  • What if I cannot use my Planned Vacations in a given year?

    Each investor will enjoy the significant vacation value attributable to use of the Fund residence each year. If an investor has confirmed Planned Vacations that are not going to be used in a given reservation year, they can exchange them for Elite Alliance and ThirdHome Credits or ask the Property Manager to rent the Planned Vacation on their behalf.

  • Can I rent my vacation time?

    Investors may ask the Property Manager to rent their Planned Vacation at any time. Any Planned Vacation may be rented. The sooner you notify the Property Manager to rent your Planned Vacation, the greater the chance your Planned Vacation will be rented. Rental income from your Planned Vacation, excluding direct costs of the reservation – such as cleaning expenses, will be used to offset your operating costs. The management company will handle the bookings and manage the guests.

  • Can I share my Planned Vacations with friends and family if I cannot use them?

    Yes, your Planned Vacations are yours to use as you wish.  The Fund allows for Unaccompanied Guests to use your confirmed Planned Vacations, allowing you to give your vacation time to friends, family, or business colleagues.  You can even donate your Planned Vacations to your favorite charity.

  • Can I bring my pet to the home?

    Yes, you can bring your pet and be charged a nominal pet cleaning fee.

  • Why is the Mauna Lani Residence Fund a smart investment?

    The Mauna Lani Resort has a limited supply of large, single-family residences available for short-term occupancy. In fact, the Laule’a development is one of the only communities in which vacation rentals are allowed within Mauna Lani. This will be an important differentiator for this home when the time comes to sell.

    In addition, The Fund is purchasing the home directly from the developer at an exclusive reduced price, adding to the expected appreciation potential of the home. We’ve modeled a 1.4X return (3% to 5% annual appreciation) of capital over a 12-year hold period.

    Additionally, Auberege Resorts has invested $200M+ into the Mauna Lani Resort, transforming it into one of the most refined luxury resorts in Hawaii. We anticipate an increased demand for the Mauna Lani Resort following the renovations.

  • How are my capital contributions used?

    Capital contributions will be used to: (i) acquire the residence, including closing costs and other acquisition expenses, and (ii) establish an on-going reserve to cover maintenance, appliances, furniture replacement and working capital.

  • Will the Fund borrow money to acquire the residence?

    The Fund’s investment strategy is to deploy an unlevered model.

  • What is the expected investor vacation value in a given year?

    The expected average annual vacation value based on the use of five weeks is estimated to be approximately $60,000, on average. Additional space-available stays at the residence or through ThirdHome and Elite Alliance may increase the annual vacation value.

See the Mammoth Residence Fund See the Equity Platinum Fund homes
An accredited investor is someone who earned income that exceeded $200,000 (or $300,000 if married) in each of the prior two years, and reasonably expects the same for the current year; OR has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).