Henry specializes in Investment properties, including apartments, industrial, commercial and mixed-use developments. Henry has been associated with TRI Commercial since 1995 and has successfully completed sale and lease transactions in the greater Bay Area, and more particularly in the South of Market and Northern Peninsula areas. Henry is a member of the San Francisco Board of Realtors, the California Association of Realtors, and the National Association of Realtors.
By Lisa Brown | Reporter for Globest.com SAN FRANCISCO—A trifecta of transactions that were all associated with a single Mission District property were marketed and closed by TRI Commercial/CORFAC International, according to president Tom Martindale, SIOR. The buyer of the building … Continue reading
News From: TRI Commercial/CORFAC International Media Contact: Gary Marsh (415) 453-7045 or email@example.com TRI Commercial/CORFAC International Completes a Trifecta of Deals Associated with a SOMA Commercial Property San Francisco, California (October 12, 2015) –TRI Commercial/CORFAC International President Tom Martindale, SIOR, … Continue reading
Will Chinese Investors Now Seek Alternate Markets?
By: Natalie Dolce
SAN FRANCISCO—Asian investor profile has really been focused on New York and San Francisco. Now they may be willing to look more closely at alternate markets such as Chicago, Houston, Seattle, Denver and Boston or strong suburban markets. That is according to Anton Qiu, a principal and executive managing director of TRI Commercial/CORFAC International based in San Francisco, who spoke in depth with GlobeSt.com on the subject in this two-part Q&A series.
GlobeSt.com: Can you give us a sense of the scale of Chinese investment in US commercial property in recent years?
Anton Qiu: From January 2005 to March 2014, Chinese investors made direct acquisitions of $8.5 billion in U.S. commercial real estate. Of this amount, an enormous $5.8 billion was in the 15-month period from January 2013 to March 2014, according to Deloitte 2014 China Investment Report.
GlobeSt.com: Drilling down locally, what are some of the San Francisco investments made by Chinese buyers?
Qiu: *Vanke’s joint venture with Tishman Speyer (70/30) in SoMa to develop the 655-unit highrise luxury condo project Lumina at an estimated cost of $620 million.
*Beijing-based Zarison Group joint ventured with East Bay-based Signature Properties to create Brooklyn Basin in Oakland, which when complete calls for 3,100 homes, plus new commercial and retail development on the waterfront. The project is expected to take more than 10 years to build out and cost in excess $1.5 billion.
*China’s Gemdale Group is the financial backer for Lincoln Property’s ground-up development of the last remaining North Financial District Class A office building at 350 Bush Street.
*China’s Genzon Group (known as Kylli in the U.S.) bought the majority stake in 225 Bush Street, a 583,000-square-foot office building (the former Standard Oil Co. headquarters) which was valued at $350 million.
GlobeSt.com: What about smaller deals?
Qiu: Yes. Those are just the big deals. There have been many smaller property sales to Chinese buyers, many of whom are just high-net worth individuals buying local investment properties. For example, two years ago I was involved with a $12-million sale of a class B office building in San Jose. I represented a Chinese group out of Los Angeles in the acquisition.
GlobeSt.com: With China’s economy slowing, do you think the people managing its property investments here in the States will alter strategies?
Qiu: First and as most people know, there is a global search for yield with too much capital chasing too few investments of all asset classes. In the recent past Chinese investors have been willing to take on more risk; now they may be a little more cautious and instead of pure-yield plays, they may be looking for longer-term investments such as the Brooklyn Basin project in Oakland mentioned earlier. Additionally, the Asian investor profile has really been focused on New York and San Francisco. Now they may be willing to look more closely at alternate markets such as Chicago, Houston, Seattle, Denver and Boston or strong suburban markets.
GlobeSt.com: What’s behind all this Asian investment after all?
Qiu: The current market slow-down in US property markets may not be temporary; a real estate correction could occur given that capital markets have already begun a correction. Plus, the current market of super-high rents are not sustainable. However, I don’t see Chinese investments in US slowing down as there are waves upon waves of wealthy high net-worth individuals coming here and often for numerous reasons in addition to asset allocation and diversification previously mentioned, such as family needs—children’s education, immigration and quality of life. There are plenty of stories in recent years of Asians buying homes in and near Atherton to get their kids into local schools and have them ready for Stanford.
In addition, many wealthy Chinese are concerned about economic stability and uncertain how their own economy will continue to evolve from purely state-sponsored to some hybrid of capitalism with state controls or strong influence. The US is a safe haven for investment.
For Part 1 click here!
The Meaning Behind China’s Recent Stock Slide
By: Natalie Dolce
SAN FRANCISCO—GlobeSt.com catches up with Anton Qiu, a principal and executive managing director of TRI Commercial/CORFAC International based in San Francisco, to assess the meaning behind China’s recent stock market slide and its potential impact on US commercial property investment.
GlobeSt.com: For starters, give us a perspective on Chinese investment in the US.
Anton Qiu: In the first half of 2015, Chinese firms spent $6.4 billion on 88 Foreign Direct Investment transactions in the United States—the highest first half-year figure ever recorded and about 50% of the money was put into real estate. (Source Rhodium Group China Report)
The biggest deal was Anbang’s $1.95 billion investment in New York’s Waldorf Astoria hotel.
GlobeSt.com: A little more than a month ago China’s stock market took a big hit—what happened?
Qiu: China stocks crashed and all Asian markets suffered major losses on “Black Monday” August 24. China’s benchmark Shanghai Composite index declined 8.5% in a day—its biggest selloff since 2007—wiping out all gains made this year. Many companies, including some state-owned firms, fell by the maximum 10%. The index lost about 38% of its value since its June 2015 peak.
It also sparked market turmoil worldwide. Europe is the world’s second largest economy and biggest trading partner with China; its stock markets declined 5% on the news, while Wall Street was crushed at the opening bell the following morning. Commodity prices fell into territories not seen since 1999. Oil fell to $39 a barrel—its low point since crude began its slide a year ago.
GlobeSt.com: You are originally from Shanghai and you do a lot of investment business with Chinese investors. After “Black Monday,” was there an immediate impact on some of your deals?
Qiu: Before I address commercial property sales, one anecdotal observation I will make is that San Francisco housing prices appear to be stabilizing—we’re seeing fewer bidding wars and sales actually closer to asking prices. Up in Napa, some of sellers of the high-end wine properties are beginning to discount prices. Bear in mind that about 15% of high-end residential sales in recent years have been to Chinese buyers—usually all cash. To me, this indicates that we may have reached a peak. My own deals weren’t impacted though Black Monday did generate a few phone calls and emails from concerned investors.
Regarding China’s stock market jitters and its impact on US commercial real estate—if anything, my personal view is that property investment will accelerate in the coming months and years because the wealthy upper-middle class and the ultra-high net worth families are now thinking about asset allocation, diversification and wealth/capital preservation more than ever before. This China stock market crash is a wake-up call that one can’t put all their eggs in one basket when it comes to managing and preserving wealth.
GlobeSt.com: Are there any indications that Asian property investors in the Bay Area are beginning to pull back a bit?
Qiu: No, I see continued strong demand and acceleration of investors’ desire to invest in almost all asset classes and the demand is from both individuals, family offices, as well as large corporations, tech companies, funds and SOEs (State-Owned Enterprises).
For Part 2 click here!
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CORFAC is pleased to announce that a record number of Next Generation members attended the 2015 Fall Summit in Minneapolis Sept. 9-12. The more than 15 Next Gen attendees provided some fresh perspectives and new energy to the organization’s second annual meeting of the year.
Special congrats to the Next Gen Scholarship winners who were also first-time CORFAC conference attendees, including: Morgan Pepper, The Klabin Company/CORFAC International; Ian Ameche, The Klabin Company/CORFAC International; Cole Sweatt, TRI Commercial/CORFAC International; Gabriel Galiothe, TRI Commercial/CORFAC International; Jesse Bauer, Pro Ten Realty/CORFAC International; Dino Alevizos, Shindico/CORFAC International; Jorge Lara, IVI Instrumentos/CORFAC International and Zach Meyer, The Zacher Company/CORFAC International.
CORFAC provided a range of opportunities for all Next Gen attendees to network including a roundtable lunch and “huddles” with CORFAC principals who shared their insights and perspectives on the business. Other Next Gen attendees included Adam Tarantur, Podolsky Circle/CORFAC International; Cale Berg, The Dickman Company/CORFAC International; Lucas Gaughan, The Gaughan Companies/CORFAC International; Michael Hussey, Podolsky Circle/CORFAC International; Marina Kukharenko, Bright Rich/CORFAC International; Kent McCoy, Centric Commercial/CORFAC International; Kevin Riley, Weber Wood Medinger/CORFAC International and Andy Swanson, Centric Commercial/CORFAC International.
Congrats to all Next Gen brokers on a great Fall Summit!