Commercial Real Estate Investment Bank Addresses Foreign Investment into U.S. Commercial Real Estate Assets
Commercial real estate lender, Pacific Security Capital, provides strategic insight into the considerations surrounding foreign commercial real estate investments of U.S. real estate assets.
Beaverton, OR (PRWEB) June 23, 2005 -- http://www.pacificsecuritycapital.com -- Pacific Security
Capital (“PSC”), a leading commercial real estate investment bank, headquartered
in Beaverton, Oregon, provides strategic insight into the considerations
surrounding foreign commercial real estate investments of U.S. real estate
assets
Commercial real estate in the United States has historically been
recognized as a favored asset class that has yielded steady appreciation without
the fluctuations that are characteristically present in competing asset classes.
This, in turn, has long made commercial real estate an attractive investment to
foreign investors. The political and economic stability of the U.S., the absence
or threat of government appropriation or nationalization, and the recognition of
the historical strength of the US Dollar have no doubt also been contributing
factors to the lure of foreign investors.
Having years of commercial
real estate lending experience, Mike Myatt, the Executive Managing Director of
commercial real estate investment bank Pacific Security Capital, provides
insight that “given the attractive market characteristics described above, there
has been a tendency for foreign investors to allow the sense of urgency
surrounding the placement of funds. Thus, the desire to maintain competitive
yields to drive their entry in to US commercial real estate markets.”
Myatt adds that “while resulting in great velocity with respect to time
to market considerations, this scenario is regrettably akin to letting the tail
wag the dog. If either ignored or misunderstood, navigating the complexities of
international real estate finance with respect to the structuring of foreign
investment into the US commercial real estate market can lead to a veritable
plethora of increased costs and risks.”
Experience shows that a rush to
place capital on the part of foreign investors will result in the selection of
the wrong assets in the wrong markets and in a resultant sub-par investment
performance. This scenario coupled with poor tax planning, insufficient
infrastructure and the lack of a hedging strategy has caused many a horror story
about what can happen to foreign investors with an ill-conceived investment
strategy.
To maximize returns, create operational leverage and manage
economic risk the foreign investor should assess the following items prior to
expatriating capital into US investments:
- Financially engineer a business
model that leverages the best of both foreign and domestic strategic tax
planning;
- Assess the need for, and cost of currency hedging;
- Determine
best practice methodology for accessing deal flow in alignment with investment
strategies;
- Understand the increased costs and complexities of logistics
and operations;
- Choose a business model that will lend itself to maximizing
US capital markets access
About Pacific Security Capital
Pacific
Security Capital is a leading commercial real estate investment banking firm
providing commercial real estate loans, structured finance, investment sales and
advisory services. The combination of direct lending, advisory, intermediary,
corporate and professional services, syndication and acquisition services
consistently allow PSC to rank among the leaders in the industry. PSC is
headquartered in Beaverton, Oregon with other offices in major markets in North
American and Europe. More information about the company can be found at http://www.PacificSecurityCapital.com.
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Source : http://www.prweb.com/releases/2005/6/prweb254490.htm