Kite (Kite Equity Residential Fund 1, L.P.; the “Fund”), created by Joshua Gurwitz and Erica England, seeks to raise $100M of equity that will be used to develop ultra high end luxury single family residences in prime markets ranging from Miami, The Hamptons and select locations in Connecticut. Through years of risk management, real estate investing, and construction experience we offer the full package of custom tailored investments that match the needs of our investors.
We are aware of market risks thus through experience, knowledge, and creative solutions we have been able to successfully navigate our key markets where we continue to see value and opportunities. We firmly believe in the value of a great product to out perform the market.
The total U.S. luxury residential market stands near USD 290 billion as of 2025.
Luxury single-family development, though not isolated in major estimates, clearly plays a sizable role—evidenced by nearly USD 1 trillion in single-family project value, much of which falls into the luxury price tier.
A reasonable inference is that the luxury single-family home development market in the U.S. is a subset of that large pipeline and could plausibly represent several hundred billion dollars in active development.
Careful asset selection has been the foundation of our business. Once the appropriate project is selected we are able to add our unique stamp of quality design and thoughtfulness that commands the highest premium and maximizes our returns. Through thoughtful design concepts, impeccable construction quality, and creative solutions we have been able to maximize the proceeds on over $350M of high end luxury single family residential development with an average project multiple of 1.7x.
The GP will manage the acquisition, design and development process, which will take on average 32-40 months per home, and then sell those homes, potentially pre-completion, for prices ranging from $20M - $50M, with an asset unlevered multiple of 1.4x or a levered multiple of 1.6x. Depending on how quickly we are able to identify opportunities that meet our underwriting criteria, up to six homes may be constructed at once.
Should an asset be fully realized within the development period, the GP may recycle those proceeds into building new investments, which could potentially increase returns, however such a scenario is not factored into the target returns.
The Fund prioritizes principal protection, as demonstrated by our unique approach that uses a maximum of 50% leverage, only once the project is underway. While other Funds may maximize leverage, it is the GP’s opinion that those Funds’ unlevered returns do not match or exceed that of this fund and that such high leverage puts target returns and investor capital at risk, as evidenced by the current economic environment.
It’s our experience that being able to acquire property, begin the design and planning process, and even construct without waiting on bank funding, puts the Fund in an overall strategic advantage, reduces overall costs and streamlines the development process. This will allow the Fund’s investment objectives to be executed in what we believe is the most efficient and safe manner possible.
We feel ultra luxury single family investments can better weather increases in interest rates and construction costs because the sales price per property is generally significantly higher then more traditional single family residences. In addition, generally speaking the buyers of such properties are significantly less affected by interest rate volatility as they have alternative sources for borrowing.
In conclusion, this Fund capitalizes on its founders’ expertise in the luxury residential home market and investment management, to deliver attractive risk adjusted returns to its investors. The Fund’s formation is the natural progression of the founders’ 30+ year successful track record marked by no principal losses and a passion for excellence.