Chinese Investors Pour Money Into U.S. Property

This is nothing new.  For several years now, I have heard this tune and it doesn't seem to be letting up.

And with Chinese Companies like Anbang and FoSun acquiring US commercial -- and specifically Manhattan properties -- I don't think the trend is going to end.

The latest is: "China Life Insurance team with US developer to purchase Manhattan office tower that houses UBS."

Now, since commercial property sales have slowed in the U.S. so far this year, it appears that Chinese investors are able and brave enough to continue to plow money into this market.

So far in 2016, Chinese companies have purchased or will closed escrow on 47 U.S. properties worth $9.3 billion -- according to deal tracker Real Capital Analytics.

See the article linked here:

http://www.wsj.com/articles/chinese-investors-pour-money-into-u-s-property-1464110682

I just hope that these companies will turn their CRE acquisition attention to Las Vegas, NV as a place to invest.

With Las Vegas recovering from the 2008 economic collapse and affected property values dramatically lower, I believe the time is right for Las Vegas CRE to launch into another value increase.

Which means YOU should be taking advantage of these lower priced Las Vegas CRE properties.

So, IF you have any questions about investing in Las Vegas commercial real estate, contact me with your questions and I will reply as quickly as possible.

Contacting David Howes is easy -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88 AND Follow David on Twitter: @DavidAHowes

8% Cap Rates have returned to Las Vegas!

This is to alarm you!  I am trying to wake you up!  Las Vegas CRE property prices have gone down, enough, to start telling everyone that there are now 8% Cap Rates available!

Generally, in Las Vegas, NV, most properties that would be listed at or near an 8% Cap Rate are properties I would NOT recommend to you.  These properties will have lots of hair on them and trying to trim the excess follicles will be daunting.

And, most of the problems could be that the tenant leases have less than 3 years remaining -- with no more tenant options; or they are a weak non-denominational church (type) tenant; or they are basing the 8% on whether or not the new owner will be able to re-lease the remaining vacancy up in a short time period post escrow (Not Likely).

However, because of the state of the economy, I have complied a list of CRE proeprties that you could acquire at an 8% Cap Rate or Higher.

So, if you have been considering acquiring a Las Vegas CRE property, I am now telling you, you can acquire that property for an 8% Cap Rate right here in Las Vegas, NV!

Where not even a year ago, these very same properties might be offered at a 6.5% Cap Rate range, you are now seeing them at 8% or Higher.

Now is you chance to acquire a property with better tenants or longer leases in the existing property.

For a complete list, please email me and i will reply with the list. Prices run from $600,000 to $10 Million.

Contacting David Howes is easy -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88 AND Follow David on Twitter: @DavidAHowes

Has the Fontainebleau Las Vegas become a Joke as well as an Eyesore?

Several years ago, I wrote an offer for this property.  The Japanese Buyer I represented said $450 Million was enough.  He believed -- as I do -- there was a lot more work to be done than met the eye.

When Carl bought this out of BK on 2009, that left a lot of unpaid sub-contractors who eventually had to close shops. True: That's not his fault.

(Full Disclosure: my wife's company worked on this and was owed hundreds of thousands of dollars, which was then in turn owed to other vendors for products they didn't get paid for.)

But, Carl paid $156 Million for this property and then did nothing.  Everybody knew Carl was just going to sit on this.  And the reason he sat is because: Carl is NOT a developer.  He built his reputation on being able to buy companies cheaply, then sell off parts for more money.  I say: Good for him!

But, I do believe that his acquisition of the Fontainebleau Las Vegas has become a mistake.

Yes, I wanted to list the property and was denied.  That's okay.  I can now sit and watch the unfolding of an over priced building slowly, slowly falling apart.

In the picture, I took while on the 'Strip' with out of town family just this past Friday night, the Fontainebleau Las Vegas does appear to be slowly rotting away.

The sunset gives the abandoned property a certain haze that does suggest that no one really cares about it anymore.

Anyway, I am more convinced that this property -- which I still believe is located on the wrong section of Las Vegas Blvd -- isn't worth the $500 Million Carl's CEO told me he thought it was worth three years ago.  (Then, again, Carl's CEO opinion isn't the important one.  Carl's opinion is the only one that matters.)

So, when it was surprisingly listed this past November for $650 Million, I was floored.  You got to be kidding was my response.  And, the fact that the listing broker said in a reply email to me that they weren't going to split any commission, I thought: How greedy?  (I have a copy of the email stating that they were not sharing.)

So, I am now working on other properties with other sellers/buyers and I am trying my best to convince them that the 50% completed Fontainebleau Las Vegas isn't worth pursuing.  I truly don't see the value given that Resort World and the Alon have stalled in their construction.

So sad.

Contacting David Howes is easy -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88 AND Follow David on Twitter: @DavidAHowes