Hot Investment Near the Border
As the Mexican economy modernizes, Newport Beach-based investor Hager Pacific Properties says the border is the place to be. (Buying a Chipotle doesn't count.) Hager, with partner Interra Capital Group, recently bought a $17M portfolio of industrial properties in McAllen and El Paso, Texas.
Growth in Mexico will result in increased demand for industrial property in the border markets, Hager Pacific managing partner Rob Neal tells us. In Mexico, unemployment and real wages have improved, inflation is under control, interest rates are low, and consumers have access to credit, he explains. The new Mexican government is making progress in reducing crime and corruption, he adds. This is leading to the growth of the middle class"that will create economic stability and prosperity.
Mexico has also invested in its infrastructure, Rob notes. The country's largest railroad, FerrocarrilMexicano (would that even fit on a Monopoly board?), spent over $2B to improve its railways since 2000. The investment has reduced shipping times and increased capacity. Investments in properties on the border are investments in the growth of the Mexican economy that were happy to make, Rob tells us. The 16-building portfolio the company recently bought totals 800k SF.
