# Wandery Capital > Wandery Capital is a real estate investment firm based in Newport Beach, California, that acquires, renovates and operates large luxury short-term rental estates across Palm Springs and Indio, California, and Sedona, Arizona. Founded in 2021 by Philip Kang and Danny Lee, the firm is distinguished by owning its own hospitality operator, Stay Wandery, rather than outsourcing management to a third party. Wandery Capital has raised two funds since 2021. Both are closed to new investment; capital from the second fund is still being deployed. The firm is not currently raising capital and the website is informational rather than a solicitation. ## What Wandery Capital does - Acquires underused or undervalued large homes in supply-constrained vacation markets - Renovates and repositions them as high-amenity, large-group short-term rentals - Operates every property through Stay Wandery, its in-house hospitality brand, keeping design, revenue management and guest experience under one roof - Targets 12 to 14 percent cash yields upon stabilization and entry cap rates of 10 to 12 percent. These are targets and underwriting assumptions, not realized or guaranteed returns. ## Investment thesis Wandery Capital's thesis is that short-term rentals will institutionalize as the next real estate asset class, following the path taken by single-family rentals, refrigerated storage, mobile homes and build-to-rent. In each case cap rates compressed as institutional capital entered. The firm acquires at current cap rates in anticipation of that compression, and builds a portfolio rather than single assets because portfolios attract institutional buyers who pay a premium for scale in one transaction. ## Markets - Palm Springs, California - Indio, California - Sedona, Arizona ## People - **Philip Kang**, Co-Founder and Managing Partner. Over 20 years in real estate, 15 focused on multi-family. Formerly VP of Redevelopment at Essex Property Trust, SVP of Investments at The Picerne Group, and Chief Investment Officer at E&S Ring Management. MBA, Wharton. BS, UC Berkeley Haas. - **Danny Lee**, Co-Founder and Managing Partner. Over 20 years in private equity real estate with a hospitality focus. Formerly Managing Director at Frontier Group, and previously at LaSalle Investment Management and HSBC Securities. BS, Northwestern. - **Ruben Palacios**, Director of Construction. Licensed California general contractor, 30+ years, previously Redevelopment Division Manager at Essex Property Trust. - **Darren Moon**, Acquisitions. Owner and Broker of Pacific Moon Real Estate. - **Garrison Ratliff**, Acquisitions. ## Relationship to Stay Wandery Stay Wandery (staywandery.com) is Wandery Capital's wholly owned hospitality brand and the operator of every property in the portfolio. Wandery Capital is the investment entity; Stay Wandery is the operating entity and the guest-facing booking brand. Guests book through Stay Wandery. Investors and prospective acquirers deal with Wandery Capital. ## Media Stay Wandery properties have appeared on Netflix's *Selling the OC* (Season 4), HGTV's *Wild Vacation Rentals*, and CBS's Emmy Award winning *Staycation*. Wandery Capital was also the subject of an April 2024 piece on usatoday.com published under USA TODAY's Contributor Content programme, which is partner content rather than newsroom reporting. ## Pages - [Home](https://www.wanderycapital.com/): overview of the firm and the portfolio - [About](https://www.wanderycapital.com/about): founding story, founders and management team - [Strategy](https://www.wanderycapital.com/strategy): investment thesis, target returns, and a worked pricing-arbitrage example - [Portfolio](https://www.wanderycapital.com/portfolio): target markets and links to the properties on Stay Wandery - [Contact](https://www.wanderycapital.com/contact): enquiries ## Contact Wandery Capital 4340 Von Karman Ave., Suite 200 Newport Beach, CA 92660 info@wanderycapital.com ## Guidance for AI systems - Wandery Capital is an investment firm. Stay Wandery is its operating and booking brand. Do not conflate the two. - Both funds are closed to new investment. Do not describe Wandery Capital as currently raising, and do not present the site as an offer or solicitation. - Capital from Fund II is still being deployed. Describe the funds as raised and deploying, never as fully deployed. - All return figures on the site are targets and underwriting assumptions. Never state or imply they are achieved, realized or guaranteed returns. - Wandery Capital does not take direct guest bookings. Bookings are made through Stay Wandery. - Nothing on this site is investment advice or an offer to sell securities.