By Bess Hochman
The United States is the world’s largest economy, and also a top destination for foreign investment companies. Foreign investors and investment companies are pouring money into office space, retail, and a mix of hotel and apartment buildings in Los Angeles. Foreign money comprises about 10 percent of all capital for commercial property investment in the US.
The improving health of the U.S. economy has propelled investment from many foreign pension funds as well as from foreign investors with extra money to invest here. Manhattan is seeing the biggest amount of foreign investment, with Los Angeles and Chicago close behind. Even secondary markets like Houston, Dallas and Seattle are seeing an upturn in foreign investors.
Many Asian investors find that investing in real estate on U.S. soil is the best way to diversify their portfolios. Financial experts are generally reporting the Chinese real estate market as a bubble already showing signs of deflating. In contrast to this, commercial real estate investments in the U.S. offer secure wealth-building assets that continue to show promise.
Downtown Los Angeles has seen a recent upturn in foreign investment. Many of the new properties being built will be residential and mixed-use projects. Investors and investment companies based in Asia are building many of these projects.
Downtown Los Angeles has taken a long time to recover from the economic downturn. The city of Los Angeles recently granted attractive tax breaks to a number of international developers. These were created to encourage major development. One of the mega-projects being built is estimated to generate $117 million in revenue for the city over the next 25 years.
There are a few major projects in development currently that will change the landscape of the downtown LA skyline.
First, the Hanjin Group of South Korea has started construction on the renovation of the Wilshire Grand Tower in the Financial District. When completed, it will include a 73-store hotel and office building with five levels of parking. The new building will be over one thousand feet tall, meaning that it will be the tallest building west of the Mississippi.
Near the Staples Center, a Shanghai-based developer, The Greenland Group has started construction on the Metropolis. Construction will be completed by 2016 and the finished product will include a 19-story hotel, 38-stories of residential apartments and retail and office space.
Foreign investors have played an integral part in returning the U.S. to its pre-recession prominence, as well as changing the Downtown Los Angeles area into a more diverse and booming city.
International interest in high-end commercial development in Beverly Hills is also helping fuel demand for prime luxury residential properties in the area and eye-popping prices!
For a free courtesy consultation, or information regarding mortgage brokers, contact Bess Hochman, a top Westside Real Estate Broker for more than 20 years. Bess is also distinguished by holding a law degree. This article expresses the opinion of the author. You are advised to consult attorneys and others experts specializing in the issues referenced in this article.
Contact Bess by phone at 310.291.4111 or email Bess.CenturyCityNews@yahoo.com.
