While foreign institutional investors’ appetite for larger deals in the DC area shows no signs of waning, smaller deals are beginning to capture their interest and capital as well.
Local boutique-sized apartment and condo deals have become an area of focus for foreign investors. Between 10% and 20% of the $850M in financing for DC area condos and apartments that MAC Realty is currently arranging is coming from foreign investors, half of which are interested in boutique deals, GlobeSt reports. Northridge Capital, the DC-based firm that places foreign capital from institutions and individuals, announced last week that it had closed financing with The Fortis Cos for Pullman Place, a 42-unit luxury condo project in NoMa.
DC recently jumped to No. 2 in the US for foreign investment, largely off the strength of larger deals. Bigger deals will continue to be the primary area of focus for foreign investors due to their efficiency, but the newfound interest in smaller deals is a trend that bears watching. [GS]
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