Foreign investment in U.S. commercial real estate has dramatically increased over the past several years. Foreign investors have long viewed the United States — in particular, trophy assets and other properties in cosmopolitan markets in California, New York and Miami — as a safe place to park their money while seeking steady returns. However, in the first half of this year, we have seen a sharp decline in the amount of foreign investment in U.S. commercial real estate, in particular, by Chinese investors.
The U.S. real estate industry has long benefited from an active private placement market, where companies can raise financing by offering directly to investors the opportunity to invest in them. However, it is only over the last decade that we have witnessed the use of private placements in Europe as a legitimate competitor to the more traditional bond market.
Since July 1, New York City has seen the first effects of the recently increased New York Mansion Tax on properties sold for over $1 million.
Here is a rundown of some of Cadwalader's recent work on behalf of clients.