Getting a real estate deal closed requires the cooperation and involvement of many different parties. Developers, financiers, property managers, land owners, and leaseholders routinely engage in joint ventures, alliances, and other contractual arrangements in organizing their project. Arent Fox advises clients on the business and tax-efficient methods of structuring their arrangements. We understand the tax implications of joint venture and other equity arrangements, sale-leaseback arrangements, ground leases, mezzanine loans, credit syndication, and preferred-equity transactions.
Arent Fox enables its clients to make informed decisions regarding the principal tax risks and opportunities involved in a real estate transaction, including strategies to minimize a particular tax risk, such as state or local property tax, or to seize a particular opportunity. We work with our clients to evaluate and implement ownership arrangements tailored to a specific transaction or asset, and to minimize the impact of an unplanned or unforeseen venture exit. We assist our clients with the identification, evaluation and implementation of structures including investment funds, joint ventures, REITs and other upper-tier vehicles designed to implement new financing and equity investment mechanisms, or to form longer-term, multi-property relationships with third party partners. In other cases, a change in market conditions, a change in the parties’ economic needs or other circumstances not anticipated at the outset might change a client’s tax risk, exposure, or opportunity. In whatever context the need arises, our focus is always on addressing our clients’ tax concerns while preserving the underlying economic arrangement and allowing our clients the maximum possible flexibility.
- Quadrangle Development Corporation: Arent Fox advised private REITs sponsored by Quadrangle Development Corporation in the negotiation of a joint venture and through the construction and financing stages in the acquisition of the Towers Crescent Building in Vienna, Virginia.
- Horizon Bay Retirement Living: For over a decade, Arent Fox has represented affiliates of Horizon Bay Retirement Living in the structuring of ventures which own senior living facilities. Arent Fox routinely advises on these complex ownership interest structures, including the structuring of ownership vehicles and advising on matters pertinent to taxable and tax exempt investors.
- The Artery Group LLC: Arent Fox represented the Artery Group in a joint venture involving development of the Washington Dulles Marriott Hotel. Arent Fox counseled the client and advised on joint venture structuring, including both lender and equity financing and owner incentive planning in the ownership vehicles.
- DLC Management Corp.: Arent Fox represents DLC in the structuring of its nationwide equity transactions designed to purchase, operate and manage shopping centers.
- Forest City Washington: Arent Fox has served as lead counsel in connection with a joint venture between Forest City Washington and Gould Property Company involving the development of a 119-acre town center in Prince Georges County, Maryland, which will include a major retail center, residences, offices, hotels and other uses.
- Sunrise Senior Living, Inc: Arent Fox counseled Sunrise Senior Living in the negotiation of joint venture agreements with six separate joint venture partners for eight portfolios, consisting of over 100 properties located in 21 states valued at more than $1 billion.
- Fundamental Long Term Care: Arent Fox represented Fundamental Long Term Care in a joint venture with a Texas owner/operator for the operation of 14 skilled nursing facilities. We assisted in all aspects of the negotiation of the joint venture relationship.
- Revolution LLC: Arent Fox represented Revolution LLC in its acquisition of land on the Northwest coast of Guanacaste, Costa Rica, for the development of a luxury resort community including a One&Only Resort, a Tom Doak 18-hole golf course and approximately 300 for-sale residential units.
- Arent Fox provided tax planning and structuring to private REITs involved in the development of the Washington, DC downtown Convention Center Hotel.
- Quadrangle Development Corporation: Arent Fox represented REITs sponsored by Quadrangle Development Corporation in connection with restructuring the construction and refinancing of the Grand Hyatt Hotel in Washington, DC.