Jim
Park, national chairman emeritus
of the Asian Real Estate Association of America (AREAA), will be one of three
presenters at a panel on “The Art of Working with Chinese Investors” to be held
Wednesday at the Centro Rooftop Lounge in Miami.
Also
participating on the panel are John Yen Wong, national founding chairman of AREAA and chairman emeritus, and Anthony Self,
vice president of industry relations at Ten-X, an online real estate
transaction marketplace. The event is being organized by the Miami chapter
of AREAA, one of three Florida chapters. The others are in Orlando and
Tampa.
San
Diego-based AREAA represents the interests of Asian-American homebuyers and
those who work in the real estate market serving Asian Americans. It has about
16,000 members, with 37 chapters in the U.S. and Canada. Members are mostly
real estate practitioners – agents and brokers – as well as mortgage banking
representatives and investment strategy professionals.
Park,
who currently serves on Bank of America’s Consumer Advisory Council and is
based in San Diego, was born in Korea and immigrated to the United States when
he was 9. He studied at the University of California, Irvine, and at the George
Washington University, where he earned a master’s degree in Public
Administration and Policy.
The
Real Deal interviewed
Park to hear his views on Asian investment in Miami.
TRD: Why
are you holding this event now, and why in Miami?
Park:
“The Asia Society recently released a very comprehensive report entitled
“Breaking Ground: Chinese Investment in U.S. Real Estate,” and we will be
explaining and discussing the report for attendees. This is part of our
educational and awareness development effort, and is one of the events leading
up to AREAA’s 2017 Global Luxury Summit to be held in Miami in April. The idea
is also to put in one place the Asia Society data and discuss investment
strategies.”
(The
112-page Asia Society report, produced in collaboration with Rosen Consulting
Group and released in May, provides a macro perspective on overall Chinese
investment, sources and volume of Chinese investment in U.S. real estate,
analyses of regulatory and non-regulatory investment drivers and conditions,
and assessments of the sustainability and implications of Chinese investment.)
“The
Asian-American market is growing rapidly in the US. Miami and Florida have been
behind the curve on Asian investments and haven’t quite caught up with the rest
of the U.S. Miami is a very international market and investment from
overseas has been a critical link in sustaining that market. But I truly
believe this will change fundamentally.”
TRD:
Why?
Park: “Look
at the data points. CBRE
just issued a report listing
Miami as the fourth most important destination for Asian real-estate
investments in the U.S., after No.
1 New York, then San Francisco and Chicago. A few years back, there was no
chance of that. Asian real estate investment went to other cities. A few years
back, investment advisers in China listed Miami as a place for institutional
funds.
There
has been a large increase in the number of Chinese students enrolled in local universities,
which means more families come to visit. There is much more interest in buying
commercial and residential property here. A good chunk of Chinese capital in
the U.S. is not for investment purposes, but represents a desire to move here.
And all these Chinese coming here under the EB-5 visa (Immigrant Investment
Program) will create new jobs as they invest.
Another
sign that the Chinese are taking a greater interest in Miami … A Chinese
investor just purchased almost an entire floor at Brickell City Centre.”
(Following the interview with Park, it was reported that Chinese investors paid
$1.75 million for a 47-room
lakefront motel in the
Orlando area. The
Brickell City Centre investment was $10.9 million for 12 condo units).
TRD: When
you talk about Chinese investors, do you also include Taiwan?
Park: “We
are referring to investors from mainland China (the People’s Republic) and Hong
Kong.” (Taiwan investors are in a different category.)
TRD: And
what is your outlook for Miami?
Park:
“Foreigners see Miami as a great place to be and to invest. It offers many
options. But Florida is still very much of an unknown for most Chinese. Asian
immigration traditionally has gone to the West Coast and to New York, and those
communities have been drivers for foreign investment there. Now, Asian
immigration is increasing, it’s currently the largest group – surpassing
Hispanics – and is projected to continue increasing. There is going to be a lot
of change in terms of buyers. Miami is still not there in attracting Chinese
investment, but it’s going to get there.”
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