Where to invest $1 billion in NYC real estate

From the April issue: Let’s say you’re a real estate investor with a spare $1 billion lying around. Where should you put the funds? Luxury residential projects are the easiest way for investors to recoup their money relatively quickly — assuming the market holds up, industry insiders noted.

For example, if all goes according to plan and a condominium project sells all its units in 18 months for its targeted price per square foot, the investor can walk away with a return of 15 percent or more. Of course, the market can turn in a heartbeat, said Lawrence Longua, an associate professor specializing in capital markets at the New York University’s Schack Institute of Real Estate, adding that real estate cycles are getting shorter and more volatile. “I tell my students to go to dental school,” he joked.

This is an excerpt from “Follow the money,” which originally appeared in The Real Deal’s April issue. To read the complete article click here.