Another day, another new club. We just wrapped up a call with Thomas Memmo, one of three co-founders of Pinnacle Club, a new entrant with its first home in Brigantine, New Jersey.

With membership fees ranging between $114,900 and $139,900, Pinnacle Club competes directly with Private Escapes and Ultimate Resort.

These three destination clubs target the broadest market opportunity – mass affluent households who are interested in multi-bedroom homes in several locations. Pinnacle is starting small, limiting its first portfolio to 12 homes, mostly on the east coast. Memmo says the club plans to develop four homes per year and add about thirty owners to their deeded destination club. They’re close to launching their second home in Costa Rica and are selling pre-construction shares at $79,900.

Helium Report’s take:

Pinnacle Club is going to face the same challenges we see in other new entrants – the chicken and egg dilemma of acquiring members without a broad base of homes. Leading Residences of the World solved this problem by coming to market with over 30 homes. Private Escapes and Ultimate Resort offer more homes and a track record of hospitality operations, so Pinnacle Club will need to convince people the deeded ownership model is a compelling alternative.