November 24, 2023 9:10am | 3 minute read
Rising interest rates, hesitation about capital and construction costs are contributing to a slowdown in U.S. real estate investment and development, but foreign investors are undaunted.
International investors and developers continue to view the United States as a stable location for investment and construction, especially with long-term demand for high-quality real estate expected to outpace current capital market conditions.
Enter to win $500 in stocks or crypto
Enter your email address to get Benzinga’s Ultimate Morning Update, a free $30 gift card, and more.
They are enthusiastic about the long-term stability and growth opportunities presented by the development of major markets such as New York City, Miami, and Los Angeles.
“Turkey is a high-inflation economy,” said Sinan Temo, CEO of Turkish private equity real estate firm BLG Capital. “Real estate is probably one of the major asset classes that holds its value against inflation.”
Temo said that even in today’s tough market, securing financing for real estate projects is more difficult in Turkey than in the United States. That’s why Serdar Bilgili founded his BLG Capital.
“Funding has always been an issue,” Temo said. “Turkey doesn’t have a capital market. Access to debt is limited. He decided to do what the United States and Western institutions are doing in Turkey.”
Do not miss it:
“End 2023 strong with 3 hot ideas – virtually free”
Are you ready for your next 32%, 39%, or 45% gain in today’s uncertain markets? You almost missed the 3 latest stock ideas from stock expert Gianni Di Poce, so don’t wait! Visit here now. It’s something that can change your entire wealth creation journey with the click of a button. If you’re ready to end 2023 on a high, get 12 Rising Stock Ideas every month. Act quickly.
While US developers wait for market correction, BLG sees many opportunities in the US to leverage its expertise in development and historic preservation.
“In the U.S. market, there’s not a lot of appetite to redevelop something or inject capital into buildings that are already aging,” Temo said.
BLG has completed some of Istanbul’s most important historic preservation projects, including the Akaletlar tenements. Built in the 19th century by Sultan Abdulazizth To accommodate the high-ranking people of nearby Dolmabahce Palace, the century-old rowhouse has been transformed into a 592,000-square-foot redevelopment that includes 98 offices and residences, 42 shops and restaurants, and W Istanbul.
The company brought its historic preservation expertise to the United States, restoring the 354,000-square-foot, 18-story historic building at 711 Fifth Avenue in Manhattan (famously known as the Coca-Cola Building) and continuing to attract tenants. I am.
“We love historic buildings and giving them a new identity,” Temo said. “That’s what we like to do and what we specialize in as developers.”
The company has been conducting basic development in the United States since 2018. The latest New York project is 125 Greenwich. The company is partnering with Italian company Bizz & Partners to develop an 88-story residential skyscraper in downtown Manhattan.
Read next:
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.