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Is Disney Wasting Money Creating Exclusive Private Communities in Different States?

Storyliving by Disney
Credit: Disney

The Walt Disney Company has recently ventured beyond its traditional entertainment avenues, extending its magic into real estate by creating exclusive residential communities under the Storyliving by Disney brand.

Asteria storyliving

Credit: Disney

The move has sparked debates on platforms like Reddit, where some users question whether Disney “is wasting money” on these ventures. However, a closer look reveals a strategic approach that parallels Disney’s successful ventures, such as Tokyo Disney Resort.

Storyliving by Disney

The Storyliving communities, starting with Cotino in Rancho Mirage, California, and the recently announced Asteria in Pittsboro, North Carolina, represent Disney’s foray into the world of master-planned living.

The key distinction lies in Disney’s role. It’s not the developer, builder, or seller of the homes. Instead, it operates under the Disney Living Development, Inc. subsidiary, collaborating with third-party developers and builders.

Asteria storyliving

Credit: Disney

Third-Party Developers

This licensing agreement model mirrors Disney’s approach in Tokyo Disney Resort, where it licenses its brand to Oriental Land Company, and the park is constructed, owned, and operated by the latter. Like in Tokyo, Disney’s Storyliving communities allow the company to extend its brand reach without bearing the full financial burden of construction or property sales.

Cotino, for instance, is a collaboration with DMB Development LLC, and Asteria’s development is likely to follow a similar pattern. The communities feature Disney Imagineering, ensuring a touch of magic in the planning and design, and are staffed by Disney cast members, adding a unique Disney flair to the resident experience.

The choice of locations for these communities, from sunny Southern California to the vibrant Carolinas, reflects Disney’s understanding of diverse markets. The names, like Cotino, derived from the Smoketree and Asteria in North Carolina, reveal a thoughtful nod to local elements and Disney history.

contino storyliving

Credit: Disney

Waste of Money?

A Reddit thread on the r/disneyparks subreddit recently debated if these exclusive communities may be a misallocation of resources. However, like Tokyo Disney Resort’s success, Disney’s strategy seems to leverage its brand power and expertise in creating immersive experiences.

Why is Disney wasting money building these weird gated/senior communities??
byu/HOTDOGWEHAVEAWIENER indisneyparks

Disney minimizes financial risk by licensing its brand and collaborating with experienced developers while expanding its influence in the real estate market.

Disney isn’t building these. Development companies are paying Disney to license their name and have Imagineering contribute to the design. Basically the agreement they have with OLC for Tokyo Disneyland.

Comment
byu/HOTDOGWEHAVEAWIENER from discussion
indisneyparks

Sales for homes in Cotino are already underway, with the first homes completed in 2024. For Asteria, sales are expected to commence by 2027. Disney adults have taken a keen interest in the properties. While the homes are labeled “affordable,” they are exceedingly expensive.

Some skeptics may view Disney’s entry into exclusive residential communities as a financial gamble. However, the company’s strategic licensing model and partnership with established developers present a more nuanced picture.

Nevertheless, only time will tell if these Storyliving communities stand among Disney’s successful ventures.

About Michael Stoyanoff

Michael is a goofball with an entertainment background and a passion for writing. He has a long history of being a Disney fan and is still a lost boy at heart. In his free time, he enjoys running, playing video games, and traveling the world. He is also unnaturally obsessed with pugs and spends a lot of time with his dog Mr. Pippers the Pug.