Foreign Investment Is Booming In Southern California

Foreign investment is a significant component of the money flowing into local real estate, Stroock & Stroock & Lavan partner Loryn Arkow told the more than 290 pros attending last week's Capital Markets event at The Water Garden in Santa Monica.

Loryn was the moderator of the foreign investment panel. She spoke of how countries, including Canada and China, are investing in real estate and asked the panelists to talk about how their companies are working with foreign investors.

LT Global Investment VP Wei Huang said she is seeing a lot of different forms of Chinese investment coming to the US. Her company is developing a $500M project under entitlement in Anaheim. LT Global Investment hopes to break ground next year, she said.

Laurus Corp CIO Austin Khan said foreign investment is embedded in what his company does since its two founding partners are originally from Santiago, Chile. He said not only does his company's capital come from South America, but it also attracts capital from the Middle East.

Charlie Rose
Photo credit: Karen Jordan/Bisnow

Canyon Partners Real Estate raises money domestically and overseas, including in the Middle East, according to senior director Charlie Rose. The firm is increasingly competing against foreign investors, he said. Canyon Partners is also closely monitoring the impact of the economic downturn in China.

CBRE senior sales director Kamran Paydar said interest from Asian investors seems to be unabated. He gave examples, including the DTLA Metropolis project being built by Shanghai's Greenland Group; and the Wanda Group's acquisition of the former Robinsons-May site, which has been rebranded 1 Beverly Hills.

Kamran said Chinese investors see the US as a safe place for their investments. As far as LA is concerned, he said "their comfort level has to do with the fact they're educated here." Those investors travel here, and they're fascinated with the film industry, he said.

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