By Jason Chow
After snapping up luxury condos and commercial properties in New
York and Los Angeles, Asian investors are now training their eyes
on U.S. apartment buildings.
Investment from Asia into U.S. multifamily real estate is set to
reach record highs this year, according to a report released by
real-estate firm CBRE. Asians have already snapped up $522-million
worth of multifamily properties during the first eight months of
the year, near the 2013 total of $537 million and surpassing the
2012 total of $356 million.
"Asian investors understand residential, especially those in
dense, downtown areas," said Marc Giuffrida, executive director at
CBRE Global Capital Markets.
Asian buyers now make up 18% of foreign investment in the asset
class--an increase from 8%--while Canadian buyers remain the top
foreign investors in the multifamily category. Asian buyers'
purchases show that they are moving beyond deals for marquee office
buildings and hotels and into more-mundane but often
more-profitable areas of real estate.
Where are Asians buying? San Francisco ranked first, attracting
$326 million worth of purchases since January 2013, while Los
Angeles was second at $252 million, followed by New York at $175
million.
While investing more in apartment buildings, Asian investors
still prefer to buy single properties, as opposed to portfolios of
multiple buildings, Mr. Giuffrida said. He added that transactions
were typically $10 million to $70 million.
"We haven't seen the sale with the big number yet," he said.
"But we'll see the trend accelerate. The private wealth of the
market is just starting to pick up. There are more to come."
Write to Jason Chow at jason.chow@wsj.com