An Inside Look At Off-Market Real Estate Investments

Many investors recognize the advantages of off-market real estate over listed properties, for a number of reasons. I have dealt with off-market sales for over six years and eventually built an online marketplace around private offerings, so I’ve heard every question and answer you can imagine. Let’s take a look at some of the specifics of what separates listed and private real estate deals.

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Finding a Diamond in the Rough: Your Value-Add Property Search

When it comes to finding value in potential investment properties, small indicators can lead to big value. Let’s take a look at how to find the best value-add property. Considering many factors relating to a property’s potential value is essential to arriving at a realistic purchase price.  Investors are looking at local market information, factoring in the cost of construction and the renovation process, and in some cases they are able to see a better and more profitable use than what currently exists.

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Who are NYC’s Biggest Foreign Real Estate Investors?

foreign investment

The dollar volume for commercial real estate continues to mount, with a jump of 45% in the first quarter of last year. This growth is related to the fact that many transactions involve multiple properties –buying in bulk, so to speak.

About a quarter of this capital comes from foreign investors, often in the form of pension funds and other institutional investors with large amounts of capital. These investors favor the U.S. market because of its comparable stability, showing more interest in security than on yield.

In New York City, the Middle East and Asia have dominated the CRE market, creating intense competition for properties and driving up prices overall. A recent article on The Real Deal lists the city’s top 10 international investors, ranked by the capital each has pumped into New York’s CRE market.

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3 Big NYC CRE Deals Made by Foreign Investors

NYC Deals

2015 was a massive year for CRE deals in New York. Sales of commercial properties in the city set a new record, totaling $70 billion. This is a 12.5% increase from the previous, record, set in pre-recession 2007.

One of the factors that are driving this market is the rate of foreign investment. Foreign investment has been strong all over the U.S. in recent years. Overall, foreign buyers spent more than $87 billion on U.S. properties last year, from less than $5 billion in 2009, according to Real Capital Analytics. Interest in U.S. properties is high among foreign investors, who see our economy as a stable place to stash wealth. In fact, some of the city’s most significant CRE transactions over the past year have involved international investors.

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