Branded Residential Projects: Navigating Complex Structuring Requirements; Key Negotiation and Drafting Strategies

Description

Despite the recent volatility and uncertainty in the general commercial real estate markets, branded residential projects have experienced rapid growth over the past decade increasing by more than 150 percent. Even though these projects often include hotel brands, non-hotel luxury brands are also joining the mix.

These projects are distinguishable from time-share or fractional ownership schemes that only involve acquiring an interest in a residence or traditional serviced apartments. Rather, they involve a partnership between a brand and a developer to create luxury residences that may be integrated with a hotel or stand alone and offer concierge services and amenities to owners.

Whether part of a mixed-use development or a stand-alone project, structuring a branded residential project is complex given the number of parties involved (e.g., developers, brand owners, operators, and buyers), unique project requirements (e.g., residences designed, built, and operated in accordance with a brand's standards) and regulatory considerations (e.g. zoning issues, foreign national ownership restrictions, securities sales).

Counsel must understand the key considerations that go into planning and structuring branded residential projects and the various agreements required between the parties to best protect their interests.

Listen as our expert panel provides a comprehensive overview of structuring branded residential projects. The panel will discuss key negotiation and drafting considerations, pitfalls to avoid, and best practices to minimize risk.