Asian Capital Surges into Bay Area Class A Properties

Following last week’s string of high-profile transactions, one thing can be said about California commercial real estate, and one might expect for the U.S. markets as a whole. Long-term and foreign, specifically Asian, capital is feeling comfortable right now, with significant placements into institutional-grade assets and their long-term fundamentals as markets roil globally.

From an Asian life insurer placing an $87 million permanent loan for a development takeout of a 100% leased, single-tenant Class A creative office project; to a KBS led partnership with Singapore’s US REIT for the nearly $166 million acquisition of a trophy downtown Sacramento tower from global investor Hines; and finally, a record-setting acquisition led by Ocean West paired to two Korean institutions for a student housing purchase north of $235 million, one could argue these transactions were well underway, but one could also say they point to a rise in timely sales and capitalization. Stay tuned.

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