Norway now second-largest buyer of US commercial real estate

Sovereign fund bidding for Blackstone's $2.25B 1095 Sixth Avenue; bought 601 Lex for $1.5B

New York /
Sep.September 24, 2014 02:10 PM

Norway, surprisingly, now ranks second among foreign U.S. commercial real estate buyers, topped only by Canada.

The sovereign fund that manages the country’s substantial oil wealth made a play for Blackstone Group’s 1095 Sixth Avenue just last week, in a deal that is expected to fetch up to $2.25 billion. The move followed the Norges Bank Investment Management’s purchase of a 45 percent interest in 601 Lexington for $1.5 billion. In total, the country has spent over $3.2 billion on U.S. real estate so far this year, according to data from research firm Real Capital Analytics cited by Bloomberg News.

The push comes as Norway looks to invest as much as 5 percent of its assets in real estate.

“There’s an element of perceived safety in a hard asset in the United States, in New York City, that is harder to replicate in other alternatives,” Michael Knott, managing director at Newport Beach, Calif,-based Green Street told Bloomberg. Such investments offer the Norwegian fund “the ability to hold indefinitely and probably not be troubled at all by a low going-in yield.”

In New York City, foreign investors account for between 20 and 30 percent of all commercial real estate transactions, Bloomberg reported. [Bloomberg News]Julie Strickland


Related Articles

arrow_forward_ios
(Facebook via The Palms Hotel Fire Island)
Fire (Island) sale: Palms Hotel hits the market
Fire (Island) sale: Palms Hotel hits the market
Trump International Hotel D.C. and Donald Trump (Getty, Trump Hotels)
Trump could profit $100M in DC hotel sale
Trump could profit $100M in DC hotel sale
Related's Stephen Ross and the Chelsea-Elliott Houses (Getty, Wikimedia)
Related wades into NYCHA — and becomes a target
Related wades into NYCHA — and becomes a target
Enterprise President and CEO Priscilla Almodovar (Getty)
Enterprise closes low-income housing funds after raising $365M
Enterprise closes low-income housing funds after raising $365M
WeWork CEO Sandeep Mathrani (Mathrani/Wikipemedia, Getty)
WeWork says it must correct financial statements
WeWork says it must correct financial statements
601 Madison Ave. and Ben Soleimani (Google Maps, Ben Soleimani)
Ben Soleimani leases 12,000 square feet on Madison Avenue
Ben Soleimani leases 12,000 square feet on Madison Avenue
Rolling Gardens Apartment Homes at 405 Franklin Turnpike in Mahwah NJ (Apartments.com)
Morgan Properties trades NJ multifamily portfolio for $57.5M
Morgan Properties trades NJ multifamily portfolio for $57.5M
645 Madison Avenue (Google Maps)
645 Madison ground lease trades to Titan Golden for $27M
645 Madison ground lease trades to Titan Golden for $27M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...