Condo Hotel Financing: Benefits And Hazards Of Rule 506(c)

Law360, New York (August 13, 2014, 10:14 AM EDT) -- Condominium hotels are a subject of renewed interest, buoyed by the rising tide for real estate generally. These projects are also encouraged by favorable trends for financing under the U.S. Securities and Exchange Commission's new Rule 506(c) that allows "general solicitation," including use of protected websites, for exempt offerings by developers under specified conditions. Brand operators who are thinking of putting their flags on projects offered and sold under Rule 506(c) may wish to consider both the advantages and potential hazards associated with the new financing options....

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