SAN FRANCISCO—Chinese real estate investors and developers can't get enough Bay Area real estate, particularly large development projects in prime locations. That is according to Paul Hastings real estate partner David Hamsher.
According to Hamsher, recent investments have principally been made in dense commercial and mixed-use areas, and have been dominated by high-rise development sites—the same types of projects that have been built in China over the past decade. “The recently announced blockbuster deal to sell a prominent development site in the heart of downtown San Francisco to Oceanwide Holdings—a large publicly traded Chinese developer – is a clear example of this trend.”
According to a release from Oceanwide Holdings, Tohigh Property Investment LLC purchased the First & Mission project for $296 million. Located in the south of San Francisco's financial area, the project covers a land area of about 5,069 square meters, with total building area of about 218,300 square meters. Two tower buildings, integrating apartments, hotels, office buildings and commerce, will be built and one of them, with height of about 260 meters, will rank No.2 in the city.
Hamsher tells GlobeSt.com that we should plan to see more big deals like this in the coming year. “China and the Bay Area have longstanding cultural and economic ties that are only growing stronger,” he says. “Growth has slowed in China—particularly in real estate—and demand in the Bay Area is extremely strong across a wide range of sectors.”
He continues that “Chinese developers and investors have lots of money and experience that they are eager to put to work around the world. So, short of a dramatic change in jobs in the Bay Area, a hiccup in international relations or new political or economic winds in China, Chinese interest in Bay Area real estate will remain strong in 2015.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
