Foreign Real Estate Investment In The US Gaining Momentum Despite Pandemic Impacts

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Despite the COVID-19 pandemic, real estate investment has remained strong with the considerable foreign capital increase. For instance, the Pasadena subsidiary of a Chinese-based corporation has acquired a Calabasas office campus for around $79 million, according to the real estate company handling the deal.

Gemdale acquired the Park Calabasas office campus.

Gemdale USA purchased the 222,524 sq. ft. low rise campus at 4500 Park Granada. Commercial real estate company, Newmark Knight Frank, describes it as the largest office trade in “Cornejo Valley” since 2018. Kevin Shannon, Newmark Newmark’s Co- US Capital Markets head, said that foreign investment in real estate in the country is strong despite the pandemic impact.

Shannon said that with almost ten-weighted average years of lease term remaining, the Park Calabasas is an example of investors turning to officer assets having long-term tenants. He said since the start of the COVID-19 pandemic, there has been an increase in foreign investment such as Gemdale along with 1031 exchange capita and family office acquiring office assets to compensate for declining institutional demand for this asset class. The Park Calabasas has been used as a single-tenant campus for almost twenty years.

TA Associates completes sale of Exeter Property Group to EQT AB

Private equity firm, TA Associates has announced the sale of Exeter Property Group ownership interest for $1.87 billion to EQT AB. The sale concluded on April 1, 2021, and following the closure, the companies will combine their real estate business as EQT Exeter.

Exeter is a top real estate investment management company that focuses on acquisition, development, leasing, and management of industrial, office, and business park properties. The company runs operations through a range of value-add and private equity investment vehicles. Most importantly, the Philadelphia-headquartered company has offices across Europe, Asia, and the Americas. In 2019, TA finalized a strategic growth investment in Exeter.

Roger Kafker, TA Associates Senior Advisor, said that Exeter is a leader in industrial real estate investment across the globe. He said that they are delighted to partner with Tim Weber, Ward Fitzgerald, and the whole Exeter team to realize its objectives. Ward Fitzgerald, Exeter Property Group’s CEO, said that they chose TA because of its management-friendly approach and asset management experience. Besides financial support, TA also offered tactical and strategic support helpful for Exeter’s growth initiatives.

Ares Management Corporation Closes oversubscribed fund

Alternative investment manager, Ares Management Corporation, has announced the final closing of the Ares US Real Estate Opportunity Fund III L.P. The fund was oversubscribed with $1.7 billion commitments relative to the $1.5 billion target. This is the largest real estate fundraise in the US for the company, and it is a substantial increase from the $1 billion commitment for its previous fund.

It is important to note that Ares’s US real estate strategy draws on its experience in investing in various sectors and market cycles and follows a flexible approach that will generate differentiated investment opportunities. The fund has capitalized on an attractive market post-COVID with nine investments so far.

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