Foreign Capital Markets Dominate Property In New York
Foreign Capital Markets Dominate Property In New York. Foreign capital in the commercial property market New York City, United States, is still a major force, despite the decline occurred during the first half of this year. The brokerage company Avison Young report, foreign capital reached 34 percent of all sales of investment in New York City, down from a record 41 percent over the same period in 2015.
Despite the significant drop, the market share of 34 percent is the second highest percentage ever. In fact, four of the six largest deals in New York City were closed in the second quarter is a foreign buyer. This offer also accounted for 41 percent of the total amount transacted in sales of investment over the last three months.
“Foreign investors show their preference more for a property in this quarter, with foreign entities 50 percent of all institutional capital compared to the secondary property market is only 16 percent,” Avison Young wrote in a report.
Avison Young added that this is a continuation of a trend that began in the first quarter of 2013 and grew substantially in 2015 with relaxation FIRPTA requirements. Thus, it is possible to freer capital flows to the US.
Top sales include Citigroup’s second quarter amounted to 1.76 billion US dollars for the purchase of 388-390 Greenwich St, RXR Realty Joint Venture (another partner David Werner RE JV and China Life Insurance) were acquired in 1285 Ave.Kemudian transactions amounted to 1.75 billion dollars the US and Olayan Group JV agreement and Chesfield worth 1.4 billion US dollars to buy 550 Madison Ave.
Currently there is optimism in the sector investment sales after a record performance in 2015. In the second quarter seen significant results in total sales and sales volume during the first quarter of this year.