"Lessons from the Marketplace: Evolution of Developer Financing in Fee-Based Service Arrangements," Developments Magazine
In the October 2013 issue of Developments magazine, Mark I. Sanders and J. Matthew Flower discuss the changes in developer financing post-economic downturn in their article, “Lessons From the Marketplace: Evolution of Developer Financing in Fee-Based Service Arrangements.” The article takes a closer look at the new strategy of national and international developers offering their services to smaller regional or single-site timeshare developers in fee-based-service (FBS) arrangements. The FBS arrangements offer advantages for both FBS Providers and FBS Developers by allowing Providers to generate fee-based income without incurring the traditional costs and risks of acquiring and developing real estate, while also allowing Developers to leverage the size, infrastructure and experience of the Providers. Because there are many moving parts to a FBS transaction, Sanders and Flowers suggest early stage collateral discussions among participants, as well as practical recognition of participants’ inherent advantages to streamline the negotiation and documentation of a FBS transaction. For more information on FBS transactions and to view the full article, please click here.