FULL SCRIPT OF THE VIDEO

Why Invest in US Commercial Real Estate?

Welcome aboard our series of “Flights to Real Estate Intelligence” where we explore the compelling reasons behind investing in US Commercial Real Estate.

In today’s video, we delve into the enduring appeal of the US commercial real estate market—a steadfast choice for both national and international investors navigating the uncertainties of our evolving global landscape. If you’re considering investment opportunities, here’s why you, as our potential partner, should contemplate joining the league of those who’ve discovered success in the dynamic US real estate sector:

Stability and Potential Returns

With a stable political environment and currency, the US is a secure investment choice. Despite pandemic challenges, the market stays attractively priced, offering substantial opportunities for operating income and capital gains. Paul, Weiss, a law firm notes that foreign investment recently exceeded $95 billion, showcasing the market’s trust. While Canadian funds dominate, diverse investments from Asia, especially Singapore, Japan, and Hong Kong, underscore the global appeal of US real estate.

Diversification Beyond Traditional Markets

Foreign investors are broadening their strategies beyond core gateway markets, exploring various property types such as industrial, multifamily, and alternative sectors like medical offices, healthcare, and data centers.

Changing Investment Landscape

Escalating prices in primary markets are prompting foreign investors, akin to their domestic counterparts, to explore secondary and tertiary US markets. This shift aligns with the trend of seeking value beyond traditional hotspots.

Lucrative Opportunities in Multifamily Assets

Multifamily assets have seen a 30% increase in foreign capital investment, reflecting a growing interest in this sector. Luxury residential real estate, a traditional magnet for foreign investment, continues to attract interest in top destinations like Florida, California, and Texas, according to Paul, Weiss. Changes in all-cash purchases and a decline in ultra-luxury condominium acquisitions in New York City reflect a dynamic market adapting to evolving preferences.

Navigating Regulatory Changes

Understanding the regulatory landscape is crucial. Paul, Weiss indicates that the Foreign Investment in Real Property Tax Act structures foreign investment through US-taxpaying entities, ensuring compliance and facilitating seamless transactions. The recent amendments, welcoming foreign pension funds, signal the nation’s commitment to fostering global investment.

US Investment Immigration Program

The American Immigration Program is a significant incentive for foreign investors, offering an avenue for obtaining an immigrant visa in return for investments in US enterprises. Though subject to evolving rules, this program remains a vital source of low-cost capital for real estate development projects, catalyzing job creation through construction and business activities. Our US real estate partnerships are designed with an immigration option for those global capital partners interested in moving to America and considering acquiring a Family Green Card for future residency.

Ensuring Security Without Stifling Growth

The Committee on Foreign Investment in the United States ensures a balance between growth and security. New regulations effective since February 2020 scrutinize real estate deals with proximity to sensitive areas, ensuring national security without hindering investments. Notably, exceptions are available for allies like Australia, Canada, and the UK, according to Paul, Weiss.

Strategic Investment Structuring

Consider structuring investments through LLCs, LPs, or Real Estate Investment Trusts, each offering distinct advantages. Pass-through entities provide insulation from property liabilities and favorable tax treatment. In the spirit of fostering international collaborations, these structures enable investors to participate in the vibrant US real estate market while navigating the regulatory landscape effectively, as highlighted by Paul Weiss.

In Summary

The USA, with its exceptionalism and dynamic real estate market, welcomes investors seeking not just financial growth but a secure and diverse portfolio. Whether you’re a seasoned investor or venturing into real estate for the first time, seeking stability, diverse investment options, or a path to US residency, we at Properties JOINTLY partnership group tailor opportunities for success.

Stay informed by registering on our website, explore our strategic structures, and be part of the success stories in the ever-evolving US commercial real estate market. Also, we invite you to join our exclusive global partnership events held in America and around the world throughout the year. To learn about the events’ schedule and book Early Bird discounted tickets in advance, please visit our website at the Global Events page. The future awaits, and our partnership opportunities are open for you to explore!

Disclaimer

This presentation has been prepared by Properties Jointly group of companies (PJ) for educational purposes only. By no means is any statement, disclosure, disclaimer, another information, or material contained herein a financial promotion nor an invitation, offer, recommendation or solicitation nor an inducement to buy or sell any securities or interests in PJ’s respective products. It should not be relied upon to make any investment decisions and does not have a purpose or intent to persuade or incite anyone to engage in investment activity under any applicable law. Reliance on this information for the purpose of becoming involved in any investment activity may expose a person to a significant risk of losing all of the funds or other assets invested.