A branded residence is, as the name suggests, a residential building with a known branded attached to it. Historically, these have tended to be hotel brands. But it really just needs to be any brand that people know, care about, and will pay a premium for. So it could also be a fashion brand, a car brand, or whatever else.
This is a growing segment of the residential market. According to UK-based Savills, there were only 15 or so of these "schemes" in the 1990s (the UK uses scheme in lieu of project, which always sounds conniving to me), but by the end of this decade they expect the pipeline of branded residences to exceed over 1,200.
I would also argue that projects designed by celebrated architects and/or designers are a form of branded residence. And this is not being captured in Savills' number above.
Whatever your definition, today, the branded residence capital of the world seems to be Dubai, which feels right. And the biggest brands, by what appears to be a long shot, are Four Seasons and Ritz-Carlton (hotel side), and YOO and Trump (non-hotel side). Here are the full rankings from Savills:
This is an interesting part of the real estate business for a few reasons. One, it makes sense. A New Balance shoe that gets co-branded with Aimé Leon Dore unlocks additional value for both sides. ALD has a brand that certain people care about. So, of course the same would be true of real estate paired with the right brand.
Two, it's a growing market, and I think this is aided by the fact that development is an intensely local business -- so it can be hard to grow a globally-significant brand on your own. Sometimes you just need to borrow someone else's.
And three, it's usually a less risky approach to getting your name on buildings. Branded residences typically operate on a licensing model, which means developers pay for the right to use the brand. The brand may also capture some of the upside in the form of a percentage of sales. That's less risky than putting up your own money.
First, the why. The why is to build better cities. And it's as simple as that. I love cities. The team loves cities. And we all feel a great sense of responsibility when it comes to doing our part to make them more prosperous, more beautiful, and overall better places to live and work.
It is for this reason that Globizen refers to itself as a city builder. We obviously didn't invent this moniker, but we do take it seriously. And our specific intent is to be both a city-building company and a city-building community.
What this means is that we do the things that most companies do, including trying to make money. But in parallel to this, we also aspire to create a community of like-minded city builders.
City building isn't just about real estate development. It's also about the artist that just painted a mural, the local restauranteur that just opened up a new concept, and the individual that just did something, whatever that may be, to improve their community.
We would like to do our part to celebrate these actions and support more of them. This is how we want to build.
As for what we actually do, we are developers of creative mixed-use infill projects. Currently, we are developing and managing projects on our own account (we invested our own equity) and on behalf of great partners. But in all cases, we have a consistent investment philosophy and approach to development:
Focus on fundamentals
Search for overlooked assets and opportunities
Embrace non-consensus views
Create value by innovating with design, culture, and technology
Execute with discipline and passion
Think long term
We are actively looking for new development opportunities. We are also exploring/underwriting a number of income-producing asset strategies. If you'd like to pitch us a site or project, or you just want to grab a coffee somewhere cool, please feel free to send me an email (brandon.donnelly@globizen.com).
Today is my forty-first birthday.
I had aspirations of making it a slower day, but that didn’t really happen. I did, however, start my morning “on the Bench” for one of our development projects and that was pretty spectacular, especially with the weather we had. Today has to have been the nicest day of the year.
I very much enjoy my birthdays, but the cadence of them seems to only speed up. It feels like just last month that I turned forty. And so in many ways, birthdays are a reminder to me that it’s important to be decisive and not waste time. Life keeps moving forward whether we like it or not — usually quickly. So it’s best to optimize accordingly.
At the same time, this is probably one of my biggest faults. I’m bad at slowing down and living in the moment. I get restless. Neat B tells me that I am at my most relaxed when we are traveling in Paris and just sitting idly in a cafe somewhere. That sounds right. But I’d like to do more of this at home.
So that’s my birthday wish (goal) for this year.