LOS ANGELES—On the debt side, a number of Asian banks have increased their lending activity throughout Southern California. Banks, such as Royal Business Bank and Evertrust, have been making a large push to expand their presence and attract business from the Chinese American communities. That is according to Daniel Mense, the director of Ness Holdings Inc., a locally based diversified development company. We exclusively chatted with Mense on how the landscape of buyers have evolved, on consolidation of mid-sized banks, the international investment community and how small investment shops have diversified their portfolio in order to stay competitive.
GlobeSt.com: How has the landscape of buyers evolved over the last several years, since the recovery, and what impact has it had on smaller firms?
Daniel Mense: We are seeing greater demand for smaller deals, particularly in the commercial sector in secondary and tertiary markets, which the larger investment firms have been targeting. Over the last year (ending March 31, 2014), smaller deals have experienced the most significant year-over-year price gain of 17.2%--the strongest since the recovery began, according to CoStar. This data strongly supports an increased appetite among larger investment firms for smaller deals in non-core markets. To further highlight this point, in the last year, we have transacted several deals in Southern California with major investment firms, ranging from $5 to $15 million in deal size. This is the first time that we've seen such interest for non-core assets by more institutional-oriented investors.
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