Israeli investment in NYC real estate plummeted in 2016: report

Investors spent $131M last year, down from $2.07B in 2015

New York /
Mar.March 31, 2017 09:10 AM
 

Israeli investment in New York City real estate all but ground to a halt last year, according to a new report.

Amid concerns that the market was overheated, investment plummeted to just $130.5 million in 2016 — down from nearly $2.07 billion in 2015. Last year’s investment level was the lowest since 2009, according to the report by Ariel Property Advisors.

Citywide, overall investment dropped to $48 billion in 2016 from $67 billion in 2015.

According to APA’s report, Israeli investors were involved in 18 deals last year, down from 39 in 2015.

“Israeli investors, as well as developers here, really took a step back” amid concerns of an overheated market, APA president Shimon Shkury, told Commercial Observer. He said there were fewer “major trades” and a slight drop in multifamily deals.

The report found far fewer investments in development projects. In 2016, investors only put $112.5 million into 11 deals, down from $1.31 billion in 24 deals in 2015. By comparison, they invested $18 million in seven multifamily deals last year, compared to $353.7 million in 10 deals in 2015.

Since 2007, Israeli investors have pumped $5.74 billion into 225 commercial property transactions in New York, the report said.

Increasingly, American real estate firms are heading to Israel to secure financing. Firms raised $878.5 million in debt in Israel in 2016, mostly by raising bonds on the Tel Aviv Stock Exchange. That number was down from the $1.07 billion raised in 2015.

Despite last year’s slowdown, Shkury said he expects investment to pick back up, and he said he’s getting questions from developers about raising money on TASE.

“People who weren’t interested before now are,” he said.

Likewise, he predicted Israeli investors would return in force come 2018 and 2019. “Israeli investors are careful and look for certainty, but they’re also opportunistic,” he said.

So far this year, Yoel Goldman’s All Year Management raised $58.3 million in a private bond offering to Israeli institutional investors. Israeli investors also picked up a Williamsburg loft building at 475 Kent Avenue for $56 million. [CO]E.B. Solomont


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Hudson Yards (iStock)
EB-5 program set to expire at the end of June
EB-5 program set to expire at the end of June
NYCEEC co-CEOs Curtis Probst and Fred Lee (iStock, NYEEC)
The wait is over: C-PACE finally goes live in NYC
The wait is over: C-PACE finally goes live in NYC
Nightingale’s Eli Schwartz and 111 Wall Street (Google Maps, Nightgale)
Nightingale, Wafra secure $500M loan package to revamp 111 Wall
Nightingale, Wafra secure $500M loan package to revamp 111 Wall
1133 Sixth Avenue, 114 West 47th Street, 537 Greenwich Street and 55 Broadway (Tdorante10/Wikimedia, Durst Organization, Easter Consolidated Google Maps)
These were the largest Manhattan real estate loans in May
These were the largest Manhattan real estate loans in May
Acting Katara CEO Andrew Humphries and 355 West 16th Street (Google Maps, AHIC)
Katara Hospitality takes over Dream Downtown’s $125M ground lease
Katara Hospitality takes over Dream Downtown’s $125M ground lease
Blooma founder Shayne Skaff (LinkedIn, iStock)
CRE fintech startup Blooma nabs $15M in funding
CRE fintech startup Blooma nabs $15M in funding
arrow_forward_ios

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

Loading...