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RUSSIAN INVESTMENT IN NYC REAL ESTATE CONTINUES

Written by JOE RUNFOLA, ITI, Broker in Staten Island

October 24, 2009 9:09 AM General Area in Staten Island

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Russian property buyers are continuing to look for New York City real estate, according to an analysis of Russian investment trends by the Moscow Times. High-profile investors have been pursuing a $200 million deal with Atlantic Yards, and have reportedly stepped up interest among Russian real estate buyers. While some expect real estate prices in New York City to fall further, industry experts say that Russians investors are drawn in by the weak dollar and are viewing New York real estate for its long-term value. [Moscow Times]

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By JOE RUNFOLA, ITI, Fri Nov 6 2009, 06:26

With commercial property values spiraling downward, foreign investors are looking to inject capital into Manhattan’s premier buildings, but some experts say they’re too eager for their own good. There’s not enough product to go around, said columnist Lois Weiss, and foreigners are having trouble securing bids on properties, or even getting their calls returned. “Everyone shows up wanting to buy trophies on the cheap and thinks they’re going to steal the Empire State Building or the Chrysler Building,” said Will Silverman of Studley’s capital markets group. Nonetheless, many foreign investors are succeeding in their efforts, and benefiting from exchange rates to boot. Recently, Joseph Cayre partnered with Israeli IDB Associates in purchasing 452 Fifth Avenue from HSBC at $400 per foot, and another Israeli company, Gilmore and Optibase, is acquiring SL Green Realty’s 485 Lexington Avenue at $560 per foot. The Middle Eastern Safra family is in serious talks to buy a 49 percent interest in 299 Park Avenue from UBS, and the Italian Sorgente Group purchased a piece of the Flatiron Building this week. [Post]

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By JOE RUNFOLA, ITI, Fri Nov 6 2009, 06:29

The young founder of a massive real estate development firm based in Shanghai, China, visited New York City this week with a hope to build a mixed-use project here sometime within the next 10 years. While Dai Zhikang, chairman of Shanghai Zendai Investment Group, has not bought any property and has no project plans, he already has set himself apart from most Chinese real estate executives touring the city these days: he wants to build his own project, not just invest in something. "I have no interest to buy [exclusively as an investor]. I just want to develop," he said in an interview earlier this week in a representative's office overlooking Union Square. Dai was ranked 127th richest person in China with a net worth of $410 million, according to a Forbes ranking of the wealthiest 400 Chinese in 2008. By Adam Pincus