In the Press
March 15, 2023

Joint Venture Issues that Can Arise in Office-to-Residential Conversions (Wealth Management)

Imagine that you are an institutional investor that owns, via a joint venture with an operating partner, an office building. Vacancy is well below pre-pandemic levels and you have just received notice that a major tenant is not renewing its lease. Your operating partner presents you with a business plan to convert the building to residential use. The plan addresses the myriad of issues in which both joint venture partners are aligned, including architectural plans, zoning and regulatory requirements and the construction budget. You believe that the plan is feasible and you now turn your attention to joint venture specific items for which the partners may not be aligned. Real Estate Associates Robert Brownlie and Jeremy Lu discuss four categories of issues that may arise between joint venture partners in office-to-residential conversions in Wealth Management.