Chinese investment in LA commercial real market declines

LOS ANGELES - In the Los Angeles metropolitan, Chinese investment in commercial real estate slowed in 2017 following the imposition of capital controls, according to a report issued by real estate brokerage Cushman & Wakefield.

The report released last week showed that last year acquisitions by Chinese investors in Los Angeles area declined 67 percent but an overall in commercial property investment reduced by only 1 percent.

There are also some notable Chinese acquisitions, the report said, citing the $117-million purchase of the Alhambra, a mixed-use complex of housing, offices and shops in Alhambra, a city 20 kilometers west of Los Angeles down town.

Another large deal was the $115-million purchase of the DoubleTree by Hilton Hotel Los Angeles Downtown.

"We welcome investors from all parts of the world come to invest in the United States, especially in the city of Alhambra. Investment brings jobs and economic prosperity which will greatly benefit the local communities." Stephen K Sham, Mayor of Alhambra told Xinhua Saturday.

Not only Los Angeles, Chinese investment to other four major US markets, including New York, San Francisco, Chicago and Seattle, shrunk at the same time, with 55 percent drop overall compared with year of 2016.

Janice Stanton of Cushman & Wakefield, who advises overseas investors, was quoted by the report as saying that she believed money from investors in other countries will continue to flow into the US in 2018.

"The acceleration of the US economy will continue to provide international investors with a compelling investment opportunity in 2018," she said.