By Angela Gonzales | Phoenix Business Journal
Parsons Villas, a Scottsdale-based vacation rental company focusing on luxury homes in Scottsdale and Paradise Valley, closed on three new homes for $9 million, with another $2 million under contract.
Plans call for investing between $500,000 and $2 million to renovate each home, with the goal of having them ready by the end of the year, said Sean Parsons, founder and president of Parsons Villas.
“Working with the best contractors and designers in the Valley, I plan to up the level in the vacation home industry,” Parsons said. “Not only will these homes be timeless for the next 10-plus years, but revenue and overall value of the homes will be improved significantly. My plan is to acquire quickly, collect the peak-season income, and renovate over the summer months.”
He recently created a $30 million opportunistic real estate fund — called Parsons Real Estate Fund — dedicated to purchasing, furnishing and renting luxury short-term rental properties in the Scottsdale and Paradise Valley markets.
Lance Pederson has been selected to manage that fund.
In 2008, Pederson got his start in the sub-institutional real estate space managing a $65 million debt fund composed of private money loans backed by commercial real estate located throughout the Pacific northwest. In 2013, he founded a real estate administration firm that scaled up to more than $2.3 billion in assets under administration.
Founded in 2017, Parsons Villas now has 25 homes in the Scottsdale and Paradise Valley area. Nightly rental rates range from $800 during the summer up to $4,500 a night for larger properties during the winter, Parsons said.
“We want to get to $100 million in acquisitions in Scottsdale and Paradise Valley,” he said. “The big audacious goal is to take it worldwide.”
He’s already started that process by managing homes in Cabo San Lucas and Telluride.
“First we’ll go out and manage,” he said. “That’s how we gather data, and then we can cherry pick deals.”
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