summary of SFBT article:
According to the members of the Association of Foreign Investors per R.E, foreign investor dollars remain firmly gripped around San Francisco, placing it into third place only behind New York and Washington DC.
The 4th quarter survey of 2009 was conducted by James Rasskamp of Wisconsin School of Business, via the 200 members in the association with a cumulative ownership of close to $850B in assets globally, $300B of which lie on U.S soil.
According to data, class A office buildings in SF are still labeled as esoteric, and foreign investors still reflect their preference in top tier territory for investment opportunities. The correlation shows the increase of interest, as 51% of the survey respondents believed the U.S holds the best opportunity for capital appreciation. Boston came in fourth place, and Los Angeles fifth, according to the survey.
As I previously mentioned in the prior entry, just this month, Taiwanese investor Steven Pan bought 49 Stevenson St. for $24.2 million. Pan’s portfolio in the past included other SF buildings like 225 Bush St. and 22 Fourth St.
Pan’s ability to time the San Francisco real estate cycles has made him extremely influential among Taiwanese investors, according to industry brokers. His reentry into the Bay Area is likely to draw other Taiwanese investors back to the city.
“Although foreign investors expressed every intent to resume investing in 2009, like everyone else, their plans were sidelined by a paralyzed marketplace with no precedent and limited investment opportunities,” said Werner Sohier, AFIRE chairman. “However, new money is becoming available and the survey points to an increased focus and interest in a few select markets for 2010, especially London and in the U.S., where prospects appear to be brightening.”