Foreign investors continue to be interested in US real estate, both residential and commercial. What makes them want to buy a particular asset in a particular market? Acquisition profiles tend to vary among foreign investors, here's what we are seeing......
1) Canadian investors, which are the largest foreign investor group in the US, are usually risk averse and typically prefer a 49% JV structure (for tax reasons) in core properties.
2) The Norwegians have been acquiring core office properties in coastal gateway cities, partnering with well-known domestic institutional investors.
3) German open-ended funds generally seek core investment opportunities (office, retail and industrial) in key US gateway cities.
4) Many Chinese investors are seeking high-quality, well-located, large-scale development projects (residential, hotel and mixed-use) and are often paying higher prices than domestic investors based on a certain degree of intangible value associated with a particular asset—for example, corporate branding potential as a strategic means to establish US presence.
5) Foreign investment in secondary US markets is driven by the economic/demographic trends and the long-term outlook of the real estate fundamentals of the specific market. As competition heats up in secondary US markets, an increasing number of foreign investors are considering Latin America as a viable alternative.
6) For additional information and opportunities Contact: SHANNON MURPHY with iCORE Global where our service offerings are more than a list of capabilities.
480.290.0249 direct
shannON.MURPHY@ICOREGLOBAL.COM
SJKM@ROCKETMAIL.COM
HTTP://ABOUT.ME/SHANNONMURPHY98
