NYC – Overseas investors and real estate buyers are adding an unexpected location to their portfolios: Brooklyn. Real estate prices throughout the area have been rising, and overseas buyers are responsible for the new, competitive pricing. In fact in the first half of 2014 alone, more than $600 million has been spent on property in Brooklyn by foreign investors. While Manhattan used to be the go-to location for the overseas market, that focus is beginning to shift.
There have been several major, high-profile investments by Japanese company like Sumitomo Corp. However, the biggest purchase was made by Greenland Holdings in China. They now own a majority stake in what was once Atlantic Yards and has now been renamed Pacific Park. This 22-acre park is prime development land for residential housing and apartments, but it’s not the only major acquisition. Ennismore Capital from the UK purchased 40,000 square feet of land in Brooklyn earlier this year. They plan to bring their Hoxton hotels to the neighborhood.
These are just a few of the major deals in recent months and more are coming. And while domestic companies also have their eyes on Brooklyn, overseas companies seem to have a slight advantage when it comes to finalizing agreements. One reason for this is that many companies in Japan, China, and other Asian and European countries don’t mind seeing low profits in the short-term. They have big plans and are willing to wait years or even longer before they see a huge return. Many US investors don’t have this same way of thinking, so the deals are going towards international companies.
As Brooklyn quickly becomes one of the prime areas for real estate in New York, it will be interesting to watch the continual battle for land between domestic and international companies. Regardless, the future is bright for real estate investments in Brooklyn.