Foreign Investors Active in Multifamily Market
Digested from “Chinese Investors Bet on U.S. Apartment Development”
National Real Estate Investor (3/23/15) Anderson, Bendix
Foreign investors — particularly from China — are continuing to invest in the U.S. multifamily-housing market. Low U.S. interest rates and a strong economy, compared with the rest of the world, are driving multifamily-building purchases and development.
According to data firm Real Capital Analytics, foreign investors directly purchased $4.3 billion in apartment properties in 2014. While that number is less than the $5.3 billion in apartment purchases by foreign investors in 2013, it doesn’t account for purchases made through U.S. sponsors and fund managers. “The majority of international capital is accessing the U.S. real estate market through a sponsor,” Brian McAuliffe, Executive Managing Director of institutional properties for CBRE Capital Markets, told National Real Estate Investor.
A recent survey of the members of the Association of Foreign Investors in Real Estate found that more than 90 percent of the foreign investors who responded plan to maintain or increase their U.S. portfolio this year.