What is an example of a property that might be managed by a REOC?

A REOC, or Real Estate Operating Company, typically manages properties that require ongoing oversight, operation services, and active management to generate income. A hotel or senior housing facility exemplifies this because such properties demand continuous attention to operations. This includes maintaining guest services, staffing, and ensuring the property meets specific regulations and standards relevant to hospitality or healthcare.

In contrast, private residential apartments could be managed by various entities but are often managed by traditional property management companies rather than a REOC. A warehouse for storage tends to be less hands-on compared to hospitality or senior housing facilities, focusing more on leasing space than ongoing service. Exclusive vacation homes usually rely on short-term rental management rather than the broader operational oversight that a REOC would provide. Thus, the management style and operational needs align closely with the nature of hotels and senior housing, making them prime candidates for REOC management.