Wealthy Russians increasingly interested in high-profile U.S real estate

As long as the price of a barrel of oil stays at $70 or above, Russians will keep investing in high-profile American real estate, Edward Mermelstein, a New York City-based real estate attorney and founder of Edward A. Mermelstein & Associates, told CNBC yesterday. While most Russian investors are interested in major resort areas like the Hamptons and Vail, Colo., they are also starting to look at distressed assets and commercial properties in Manhattan, according to Mermelstein. “In the past few months, their interest has switched from residential to commercial properties,” Mermelestein said. However, for the Russians, the size of the commercial space is not important. They are more interested in high-profile transactions like Class A properties in major cities,” Mermelstein said.