Climate Risk in Real Estate

Luke Dixon and Claire Talbot share their insights on residential vs commercial real estate, the difference between the two, when is the best time to invest in each and how investors can access commercial real estate.

Year-end means it’s tax planning time and knowing the rules is more important now than ever. The Tax Code underwent groundbreaking reform in 2017 with most of the law becoming applicable in 2018. The Treasury Department has been busy over the summer and fall producing additional guidance on the new sections of the Code.

Real estate equity investments and joint ventures have become an increasingly important part of the real estate investment arena, particularly hotel properties. Travel restrictions and health concerns had an extreme impact on hotel properties and operations, and occupancy remains low due to reduced travel. The joint venture model for hotel acquisitions offers many benefits, including increased access to capital. The joint venture agreement and other related documents are very complex and fiercely negotiated. Real estate and finance counsel must understand all the pertinent issues to successfully evaluate and mitigate risk and address economic issues when negotiating and structuring a joint venture agreement for hotel transactions. Listen as our authoritative panel of real estate practitioners and advisers reviews vital legal issues in joint ventures for hotel acquisitions and development, taking into account unique issues in this asset class. The panel will focus on preferred return/promoted interest, carried interest, cash flow splits, risk allocations, guarantees, unwind provisions, and other major decisions.

As in-house expertise declines, public and private owners of construction projects are increasingly outsourcing the management and administration of their construction projects to professional construction managers-agents. Use of professional construction managers can help protect owners from liability to other project participants because construction managers are often more knowledgeable and better qualified than an owner's personnel to properly address claims.