The Real Deal New York

Foreign investors set record in outer boroughs

More than $600M invested in properties outside Manhattan so far this year
September 02, 2014 02:55PM

The outer boroughs are increasingly gaining in popularity among foreign investors.

During the first half of 2014, foreign groups spent more than $600 million on outer borough real estate, according to Crain’s. And the biggest chunk of that money — which is a record setting amount — is being spent in Brooklyn.

Chinese firm Greenland Holding Group’s investment in the Atlantic Yards project — now called Pacific Park — was the biggest investment so far this year. Other examples include the British Ennismore Capital, which bought a 40,000-square-foot development site in Williamsburg as well as Quadrum Global, which spent $100 million for a Greenpoint as well as a Long Island City development site.

Experts see this trend continuing, as more deals from foreign buyers are in the works. Foreign investors have expressed interest in a $200 million development site on Williamsburg’s waterfront.

Richard Mack, the chief executive officer of Mack Real Estate Group told Crain’s he is getting offers from foreign investment funds who want to become his partner in a $200 million residential development along the East River.

“Everyone wants to be in Brooklyn now,” Mack told Crain’s, “and the same is true with foreign buyers.” [Crain’s] — Claire Moses