What are the requirements for investors from the U.K. and Germany to Purchase Commercial Properties in the U.S?
I am developing some relationships with Commercial investors in the U.K. and Germany for investing in Class A” stabilized income producing properties. The product types can be single tenant NNN retail, multi tenant retail or stabilized class “A” office properties. The prices will range from $2 M to $ 50 M.
They will bring a 40 % equity stake. Does your bank have a program that works with foreign investors? If so can you provide me with some details?
Answers (5)
Chris S.
Marketing, Sales, and Leasing Agent at Virginia Properties, Inc.
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Contact me for information on some single and multi-tenant retail. We definitely have some things that could benefit you.
Thanks,
-Chris-
Links:
Fred H.
Sr, VP - Director Commercial Lending at Global Fundings, Inc.
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Edward:
I would think your investors will establish a US-based facility for property ownership. Perhaps one for each transaction: S Corp, LLC, Partnership, Trust, etc.
The lender will underwrite the owner and then the principles. Recourse will be an interesting issue for both parties - the borrowers and then lenders. With 40% down, however, you should be able to reduce that conversation.
Lenders are going to be very, very interested in how the properties will be managed since the principles are overseas. They will also need a permanent agent for service established in the US (for the ownership entity).
The key to your deal is the business plan - management, successful track record of the person or persons selecting the properties, etc.
Cheers,
~Fred
You'll also need to have an experienced, well connected broker that you can trust and rely on to get straight forward information and suggestions. I'd suggest an international firm like Colliers (or one of our competitors) that has offices in the UK and throughout europe and multiple offices throughout the US to find and screen potential investments that meet your individual criteria.
Hope this helps.
Gary A.
President at Aminoff & Co. Realty Advisors, Inc.
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Edward,
We work with foreign investors all the time. We also specialize in the type of properties you specify and can provide properties that will fit your need.
I recommend you review our web site at http://www.aminoff.com.
Please contact me for further discussion.
Links:
Yes we indeed work with foreign investors. We can obtain finance with 30-345% down depending on case by case. I have a sister company JMCF Partners which can serve your client needs. Loan commitment in 15 days, approvals from 30 to 45 days.
JM Padron, CCIM, CRB
REMAX Premier Associates
Clarification added November 22, 2008:
I meant from 30-45% down
