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.
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.”
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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 Abdulaziz as a residence for high-ranking people in the nearby Dolmabahce Palace, the tenement houses 98 offices and residences, 42 shops and restaurants, and his 592,000 sq. It was reborn as a redevelopment of Ft.
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.
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This article, “Global confidence in U.S. real estate: International investors are betting big on the resilience of U.S. real estate” originally appeared on Benzinga.com.
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