MIAMI—The international capital invasion continues—and Canada is putting down its fair share of the investment dollars. Indeed, according to Colliers International's Year-End 2012 Foreign Capital Trends Report, Canada continues to dominate the foreign capital buying market in the US for all commercial property types, accounting for 34% of the total foreign investor sales.
“As the result of Canadian banks issuing recourse loans and suffering fewer hits during the housing collapse, Canada has broken through in better shape during the global recession,” Deme Mekras, a multifamily broker with Franklin Street, tells GlobeSt.com. “Canada has made more than a quarter of all foreign investment into the U.S. according to CoStar.”
Mekras points to some of the most recent examples in South Florida, beginning with Brass Enterprises, Inc., a private real estate investment company based in Toronto focuses on multifamily residential. In the last year, this company has closed three projects in the South Florida area including:
o Parrot's Landing with 560 units in N. Ft. Lauderdale for $56,300,000 (November 2012)
o The Oasis with 140 units in Ft. Lauderdale for $7 million (March 2012)
o Camelot West with 73 units in Wilton Manors for $4,725,000 (March, 2012)
“Delavaco Properties also based in Toronto, specializes in the acquisition, renovation, and leasing of distressed single-family homes in the United States,” Mekras says. “With a whole portfolio dedicated to South Florida, they hold more than 500 single-family units and more than 400 multifamily units. Some of the latest transactions include Park Colony Apartments with 316 units in Hollywood for $41,500,000 and Summerfield Apartments with 153 units in Sunrise for $12,150,000.”
But Canada could see more competition from foreign investors in 2013. Expect a cornucopia of global capital investment. Despite the debt crisis, European investors are still inking plenty of deals stateside.
What do you see in 2013 on the foreign investment front in South Florida?
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