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One thing that has propped up the U.S. real estate market since the financial crisis has been the willingness of foreign buyers, especially Chinese buyers, to purchase land and buildings in America. That trend could be reversing itself, however. Esther Fung reports in The Wall Street Journal:
Chinese companies spent tens of billions of dollars on U.S. real estate in the years following the financial crisis, snapping up high-profile properties like the Waldorf Astoria and Baccarat Hotel in New York. But in the second quarter Chinese investors turned net sellers of U.S. real estate for the first time in a decade. That selling continued in the third quarter, according to data firm Real Capital Analytics.
The partnership of Alagem Capital, headed by hotel mogul Beny Alagem, and Cain International already owns two neighboring hotels: the Waldorf Astoria Beverly Hills and the Beverly Hilton. With the latest purchase of the One Beverly Hills site located next to the Beverly Hilton, they will own a contiguous site of 17 acres that comes with a coveted 90210 ZIP Code.
“We are used to developing iconic projects in iconic areas,” Mr. Goldstein said in an interview. He added that it is a once-in-a generation opportunity to be able to develop more than 1 million square feet of space on both the Beverly Hilton and the One Beverly Hills sites. Mr. Goldstein said he expects the deal to close this month.
In 2016, Mr. Alagem’s company, Oasis West Realty, which owns Beverly Hilton, complained that Wanda’s project design would impede traffic.
Wanda had clashed with a hotel labor union, and late last year, contractors that had worked on One Beverly Hills filed liens against the property, saying they were owed millions for their work.
Wanda didn’t immediately respond to requests for comment.
Read more here.