Law360 Quotes Manatt Real Estate Co-Chair on Japan's Latest Investments in California

Japan Returning to Calif. RE But Avoiding Trophies
– Law360

Law360 turned to Manatt's Michael Polentz, co-chair of the firm's Real Estate and Land Use practice, for an article on why Japanese investors are getting back into California real estate.

Law360 reports that, in stark contrast to a quarter-century earlier, Japanese investors are staying away from trophy properties and instead are joining the frenzy of foreign buyers seeking other assets. They're no longer opting for properties like many of the major hotel and office assets they purchased in the late 1980s and early 1990s. Industry insiders say there is now a better understanding among Japanese investors of certain nontrophy assets, such as multifamily properties.

"They understand the model better than some of the other asset types," said Polentz. "It's really a function of being able to come in strong on all-cash deals and outbid the domestic players that are looking."

One type of Japanese investor, Polentz said, is the investor who wants to park money in what is deemed as relatively safe investment classes, whether in Japan or the United States. Such investors may look to areas like multifamily, which are often viewed as safer than trophy properties.

Read the article here



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