Home Tags Entrepreneur

Tag: entrepreneur

TRENDING

More Foreign Capital Flowing to Real Estate Debt Funds

Foreign capital is following the broader market shift that has investors allocating more capital to commercial real estate debt. “Anecdotally, we have been seeing a fairly dramatic uptick in interest from foreign investors into the U.S. lending space over the last 12 to 24 months,” says Ryan Krauch, a principal at Mesa West Capital, a dedicated commercial real estate lender that provides mezzanine and first loans for properties across the country. The South Koreans were on the front edge of that trend two or three years ago, and that interest has since expanded broadly to include Asian, European and even Canadian investors, he adds. Foreign capital is following the broader market shift that has investors allocating more capital to commercial real estate debt. The same factors that have been attracting foreign capital to the U.S. real estate market for decades are still in play in terms of transparency, liquidity, quality assets and stable fundamentals. Searching for alternatives Premium pricing in equity markets is one of the reasons pushing investors to consider alternatives. There is still a lot of dry powder that has yet to be deployed and considerable interest in U.S. real estate, agrees Bob O’Brien, Deloitte’s global real estate & construction sector leader. Investors like debt as a fixed-income alternative, especially because many countries have low 10-year benchmarks in their home countries. So there are still plenty of opportunities for private capital to step into that lending space, he adds. “Consequently, I think you are seeing foreign investors taking a look at that part of commercial real estate investing world and seeing some interesting opportunities from a risk-reward standpoint,” he says.