Please make sure that you are installing only the wpresidence.zip file.
If you are uploading the right file and the error still shows up, that must be from a restiction from your server.
The alternative is to install the theme via FTP.
Please see the FTP method:
Very important is to first Unzip the theme pack downloaded from Theme Forest after you purchase.
Upload just the folder wpresidence contents to the wp-content/themes folder on your server – via FTP Manager
Activate the theme in the Appearance / Themes menu in WordPress Admin.
Open the WPRESIDENCE Options and set up theme options from Appearance – Theme Options.