Foreign investors are exercising caution these days. Though LA has long been known as a hub for foreign investment, lenders are leaning toward the conservative side.
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"They are being more conservative with their underwriting assumptions, more selective on the types of properties they will lend on," Kearny Real Estate Co. partner Hoonie Kang said.
This has proven to be beneficial for Kearny Real Estate since lenders are more focused on the quality of sponsorship, according to Kang.
"We are proud of our reputation and track record," he said. "In our 24-year history, we have paid off all of our loans in full."
Given how late we are in the current cycle, Kang said Kearny is reviewing its investment philosophy, but this is mitigated to a large degree by how Kearny identifies potential acquisitions. The firm has never been a macro market buyer.
"We take a rifle shot approach to identify individual opportunities where the stars and the moons align," Kang said.
Hear from Kang and other expert panelists at the Bisnow Capital Markets and Foreign Investment event at 7:30 a.m. March 16 at the Westin Bonaventure Hotel in DTLA.
