The Real Deal Miami

Foreign governments buy up U.S. office property at a steep discount

June 23, 2011 02:47PM

 

Foreign governments are buying up U.S. property at steep discounts through their investment funds, according to the video above. Manhattan and Washington D.C. are particular hotbeds of activity and opportunity, with governments taking advantage of low prices and the weak dollar to pick up Class A office properties, said real estate attorney Edward Mermelstein. The video referenced Kuwait’s recent purchase of 750 Seventh Avenue. Some, including Peter Morici, a professor at Maryland University business school, believe that allowing these buyers to infiltrate the market poses a risk to national security. He said it’s often difficult to track these transactions and that the funds are often reluctant to disclose details of their portfolios. Economist Edward Truman argues, on the other hand, that any investment in U.S. real estate is good news for the nation’s economy.