Short of a dramatic change in jobs in the Bay Area, a hiccup in international relations or new political or economic winds in China, Chinese interest in Bay Area real estate will remain strong in 2015, says Hamsher.
SAN FRANCISCOChinese real estate investors and developers cant get enough Bay Area real estate, particularly large development projects in prime locations.That is according to Paul Hastings real estate partner David Hamsher.
According to Hamsher, recent investments have principally been made in dense commercial and mixed-use areas, and have been dominated by high-rise development sitesthe same types of projects that have been built in China over the past decade.The recently announced blockbuster deal to sell a prominent development site in the heart of downtown San Francisco to Oceanwide Holdingsa large publicly traded Chinese developer is a clear example of this trend.
According to a release from Oceanwide Holdings, Tohigh Property Investment LLC purchased the First Mission project for $296 million. Located in the south of San Francisco’s financial area, the project covers a land area of about 5,069 square meters, with total building area of about 218,300 square meters. Two tower buildings, integrating apartments, hotels, office buildings and commerce, will be built and one of them, with height of about 260 meters, will rank No.2 in the city.
Hamsher tells GlobeSt.com that we should plan to see more big deals like this in the coming year. China and the Bay Area have longstanding cultural and economic ties that are only growing stronger, he says. Growth has slowed in Chinaparticularly in real estateand demand in the Bay Area is extremely strong across a wide range of sectors.
He continues that Chinese developers and investors have lots of money and experience that they are eager to put to work around the world. So, short of a dramatic change in jobs in the Bay Area, a hiccup in international relations or new political or economic winds in China, Chinese interest in Bay Area real estate will remain strong in 2015.