He’s exploring branded residential in different price points

NATIONAL REPORT — Nate Siehr said his company’s goal is not just to be like other luxury-branded residential developers.

“We think that there's a real opportunity for people wanting something in a more affordable price point and we’re trying to reach that consumer,” said Siehr, co-founder and principal of Miami-based The Big Key Group.

The Big Key is developing the 322-key Ambar Residences Orlando (a soft brand the company created), which will be the first branded residential project under the Apartments by Marriott brand in the U.S. The three-tower project is scheduled to open in late 2028 and will be managed by Dallas-based Coury Hospitality.

The Big Key serves as the general partner, with about 80% equity in the project (which will be further diluted with further investments), alongside other limited partner investors.

Siehr has a deep background in hospitality, including 12 years at Marriott. He left there with the intention of following his own path and buying his own hotel. That ultimately led him to The Big Key Group and the company’s first development.

Our preference is to have some sort of branded residential component if we can, just because of what it brings to the property in terms of returns and operations.

Nate Siehr

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While Siehr said Big Key wanted to pursue this branded residential path because of his hospitality experience and his partner’s (Rodrigo Gana) residential experience, that doesn’t mean the company will only do this type of development.

“We're not 100% married to doing all branded residential projects. Some of our pipeline projects include traditional hotels with a branded residential component. Our preference is to have some sort of branded residential component if we can, just because of what it brings to the property in terms of returns and operations,” he said.

Partnering with Marriott was an easy choice, Siehr said.

“Marriott's been in the branded residential business for the longest, 25 years, and obviously it resonates very well with the buyers,” he said. “If you don't have a great brand that brings that operational excellence and reputation and value to the property, the brand is just a decoration. So being with Marriott was really important.”

Buying a branded residential unit requires an understanding of the property's long-term value, Siehr said.

“They're not just buying square footage with the name on it. They're investing with the confidence of how it will be delivered over time,” he said. “That goes for us, too, as the manager of that property going forward. [Marriott’s] platform continues to expand… So that's obviously great for us as the developer.”

The Big Key is developing the standalone branded residential Ambar Residences Orlando (a soft brand the company created).

Siehr said the company is working on a couple of projects in its pipeline; one could be a comparable mirror-image project in Orlando.

“We're still open to the decision of whether to repeat the Ambar name, or whether to just start from scratch and create a whole new, unique brand identity and ecosystem for that project,” he said, noting the company is also looking at doing a smaller Tribute portfolio project with some branded residential.

South Florida is really the test case for branded residential right now, but Siehr said there is still room for development in different price points.

“It's a lot of the ultra-luxury, trophy asset [projects]. I'm not saying we're opposed to that, or that we don't see that in our future at any point, but we're really happy focusing on this upper-upscale price point… bringing the aspects of branded resident ownership to a different consumer class. That's very appealing to us,” he said.

“What appeals to us about broader Florida is the depth and repeatability of demand,” he said. “A lot of these ultra-luxury projects are one-time purchases, whereas, being in the space that's upper upscale…  we really enjoy it addresses that multi-generational travel market.”

What appeals to us about broader Florida is the depth and repeatability of demand. A lot of these ultra-luxury projects are one-time purchases, whereas, being in the space that's upper upscale… we really enjoy it addresses that multi-generational travel market.

Nate Siehr

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But Florida is a competitive market for branded residential. Does that mean there is a ceiling on the number of potential customers? Siehr says no.

“That's where the location comes into play. You really have to understand your consumer. You have to understand the market and the sales will inform that certainly going forward,” he said. “I don't think you necessarily run out of customers at some point. You could, in theory, oversaturate a market, but I don't see that saturation in Orlando. It's one of the deepest leisure markets in the country. You can see the depth of the customer demand.”

There are still plenty of areas in Florida that present great opportunities for branded residential, according to Siehr.

“You see a really high concentration of branded residential products in the Miami area. But I don't think you've seen that extrapolation to interior Florida, and along the coast. In the upper upscale price point, you've seen brand residential components up and down the coast, through South Florida on the West, and up through Palm Beach in the East. But you haven't seen that in the northern half of the state. There's a lot of opportunity there.”

As branded residential continues to mature, it will become more  nuanced, Siehr said.

“That's a healthy thing… for a long time, people associate branded residences with this exclusive top-of-the-market, hotel-adjacent towers in iconic urban locations and buyer profiles concentrated solely at the high end. That segment is obviously still important. It's not going away.

But the idea of branded residential is growing, both with and without hotels, and spreading throughout the vertical pipeline of brands... that suggests it's bringing value to those customers at lower price points. It's less about attaching a brand to a piece of real estate for the sake of doing so, just for the premium. It's about matching it with the right brand. Soft brands allow you to do that.”