While investor money does continue to come in, it is down 47% vs this time last year. It continues to decline. People I am in touch with in Asia tell me that many Asians are just sitting on cash waiting to see what happens in the election. It's not clear that they will start investing again once the election is decided. The view is that at least they understand their own country and market. For now, they are willing to wait and see. Translation: the surge of Chinese and other Asian capital into US-based CRE will be far more limited, and it will mainly be institutional capital into larger deals. Values in the US will decline over time. We are in for a continuation of uncertainty and nil growth. While investor money does continue to come in, it is down 47% vs this time last year. It continues to decline. People I am in touch with in Asia tell me that many Asians are just sitting on cash waiting to see what happens in the election. It's not clear that they will start investing again once the election is decided. The view is that at least they understand their own country and market. For now, they are willing to wait and see. Translation: the surge of Chinese and other Asian capital into US-based CRE will be far more limited, and it will mainly be institutional capital into larger deals. Values in the US will decline over time. We are in for a continuation of uncertainty and nil growth.
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Joel Ross
Joel Ross began his career in Wall St as an investment banker in 1965, handling corporate advisory matters for a variety of clients. During the seventies he was CEO of North American operations for a UK based conglomerate, and sat on the parent company board. In 1981, he began his own firm handling leveraged buyouts, investment banking and real estate financing. In 1984 Ross began providing investment banking services and arranging financing for real estate transactions with his own firm, Ross Properties, Inc. In 1993 Ross and a partner, Lexington Mortgage, created the first Wall St hotel CMBS program in conjunction with Nomura. They went on to develop a similar CMBS program for another major Wall St investment bank and for five leading hotel companies. Lexington, in partnership with Mr. Ross established a hotel mortgage bank table funded by an investment bank, and making all CMBS hotel loans on their behalf. In 1999 he formed Citadel Realty Advisors as a successor to Ross Properties Corp., focusing on real estate investment banking in the US, UK and Paris. He has closed over $3.0 billion of financings for office, hotel, retail, land and multifamily projects. Ross is also a founder of Market Street Investors, a brownfield land development company, and has been involved in the acquisition of notes on defaulted loans and various REO assets in conjunction with several major investors. Ross was an adjunct professor in the graduate program at the NYU Hotel School. He is a member of Urban Land Institute and was a member of the leadership of his ULI council. In 1999, he conceived and co-authored with PricewaterhouseCoopers, the Hotel Mortgage Performance Report, a major study of hotel mortgage default rates.
