summer 2011 foreign investor edition . architecture 8

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Foreign Investment Edition I Summer 2011

Fore ign Investment Edi t ion I Summer 2011

http://811amoroso.com

9 U.S. Acquisitions U.S. properties make up over 45% of the portfolios of those surveyed

13 Top U.S. Cities New York, Washington D.C., San Francisco and Los Angeles

17 Los Angeles The “It” city for real estate

investment

23 About a8 The real estate brokerage for

the novice or experienced real

estate investor

5 Founders’ Letter Global real estate investment trends and why investing in luxury properties in Los Angeles is the clear choice

7 Global Trends U.S. remains on top when it comes to providing most stable and secure real estate investments

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"Good fences make good neighbors." -Robert Frost, Mending Walls

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Founders’ Letter

http://811amoroso.com/

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Founders’ Letter Today’s U.S. economy provides foreign real estate investors with a number of opportunities for capital appreciation. Specifically, the sliding dollar, low home prices, sluggish sales and motivated sellers have created the perfect foreign investment scenario. This is especially true in the Los Angeles luxury real estate market ($1.5M+), where a solid purchase of a single family residence or condominium today could, in the long run, provide a higher than average return. In this Foreign Investment Edition of architecture 8, we will explore global real estate investment trends, and learn why investing in luxury properties in Los Angeles is the clear choice. With that, we trust you will find the information in this edition useful and should you have specific questions about a local neighborhood or a specific home, please feel free to contact us or any a8 associate.

Sincerely, architecture 8, Inc. Scott Cook, President + Eliseo Arebalos, CEO 15

Founders’ Letter


Global Trends Countries Providing The Most Opportunity For

Capital Appreciation


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Capital Appreciation While staples such as London, Paris and Shanghai still rank highly among foreign investors’ favorite cities, overall, a survey by the Association of Foreign Investors in Real Estate again found the U.S. as the country providing the most opportunity for capital appreciation. To put this in perspective, in 2006 the U.S. received only 22 percent of the vote, just ahead of China at the time. This year, the second most favored country for capital appreciation is China with only 10 percent of the votes. Source: Association of Foreign Investors in Real Estate


Countr ies Prov id ing The Most Stable + Secure Real Estate Investments


Stable and Secure The U.S. also continues its stay in the top position as the country providing the most stable + secure real estate investment. Further, given concerns surrounding the possibility of a double-dip recess ion in the U.S. have dissipated, a survey found that 72 percent of foreign investors who invested in 2010 plan to invest more capital in the U.S. this year. Source: Wisconsin School of Business

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United States Acquisitions By the middle of the fourth quarter in 2010, a survey of 200+ individuals worldwide responded they own more than $600 billion of real estate abroad, with over 45% of that being in the U.S. alone. While real estate investors continue to have their eyes set on the U.S., their focus is concentrated on a handful of gateway cities, namely, New York, Washington D.C., San Francisco and Los Angeles. Source: Real Capital Analytics

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U.S. Acqquisitions

Ranking at the top of some investors’ lists, investment opportunities in New York, Washington D.C. and San Francisco come at a premium when measured against comparable luxury properties in Los Angeles. In addition to other factors, premium prices in those three cities are driven by a relatively low number of available properties in highly sought after neighborhoods.


Top US Cities L

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Washington D.C.

San Francisco

New York N.Y.: The luxury market in New York is typically defined by the highest priced 10% of all sales. With the median sales price increasing over 15% from Q1 and the number of available properties dwindling, it may not be the most opportune time to invest in the Big Apple.

Washington D.C.: Similar to New York, W ash ington D .C . has experienced a 15% decrease in inventory when compared to 2Q 2010.

S.F.: Available properties in San Francisco sold, on average, within 55-60 days in Q2. This, combined with a small inventory, caused the median sales price to rise by almost 35%. Given inventory will remain the same or decrease, we will most likely witness a continued rise in the median sales price through the end of 2011.

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Top US Cities:

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Washington D.C.

San Francisco

New York

by the numbers


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N.Y

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S.F

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2011 # of Properties

Sold Avg. Days on

Market Median Sale

Price # of Properties

Listed**

Q2 265 138 $4,550,000 1,025

Q1 239 128 $3,950,000 1,312


Sold Avg. Days on

Market Median Sale


Listed**

Q2 177 90 $1,460,000 328

Q1 97 99 $1,750,000 241


Sold Avg. Days on

Market Median Sale


Listed**

Q2 148 54 $2,500,000 352

Q1 128 64 $1,854,574 328

**Includes properties which are under contract Sources: Multiple Listing Service of Manhattan Mid-Atlantic Real Estate Business Intelligence San Francisco Association of Realtors MLS



Los Angeles: single family A long time favorite of foreign investors, Los Angeles serves not only as the entertainment capital of the world, but also as a major port for the movement and transfer of goods and a strong link to the global network of commerce and finance. Currently, the Los Angeles real estate market is witnessing a large inventory of properties compared to the inventories of New York, Washington D.C. and San Francisco, high average days on market figures and, on average, sales prices ranging between 10-20% off the listed price. Together, these factors create the perfect opportunity for the novice and experienced investor alike.

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# of Properties

Sold Sold Avg. Days

on Market Median Sale


Listed** Listed Avg. Days

on Market Median Listed

Price***

Q2 336 99 $2,262,500 1925 163

$2,900,000

Q1 196 101 $2,397,500 1790 150

$2,982,500

Los Angeles: single family

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Source: Combined Los Angeles/Westside Multiple Listing Service **Includes properties which are under contract ***Median listed price is higher when compared to San Francisco and Washington D.C. as a result of having 3 times the number of listings between $5-20M


Los Angeles: highrise + condo

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Los Angeles: highrise + condo

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Source: Combined Los Angeles/Westside Multiple Listing Service **Includes properties which are under contract

# of Properties

Sold Sold Avg. Days





Price

Q2 24 76 $2,200,000 224 233

$2,270,000

Q1 19 142 $2,050,000 232 226

$2,237,500


Los Angeles: residential income

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Source: Combined Los Angeles/Westside Multiple Listing Service **Includes properties which are under contract

# of Properties

Sold Sold Avg. Days





Price

Q2 16 94 $1,752,500 182 169

$1,995,000

Q1 13 60 $1,802,200 164 180

$1,995,000


arc

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Our focus and our passion in real estate motivates people to respond, bond and commit to extraordinary lifestyles influenced by architecture.

architecture 8, a full service real estate brokerage, focuses on architectural and significant properties where inspired design invites you home. With an unparalleled commitment to service, and where the client’s needs come first, architecture 8 utilizes the most current technology to manage, list, market and sell properties. Whether it’s a first time home buyer being guided through the purchase process or an experienced investor looking to enhance its real estate portfolio, architecture 8 will aid in realizing the client’s desires by using its expanded network of local, national and international brokerages to provide access to extraordinary properties. architecture 8’s philosophy of “live architecture” embodies more than just recognizing the aesthetic and functional value of a property. To “live architecture” is to appreciate the unique elements and subtle details of each property and to allow the same to affect and influence one’s life. Le Corbusier wrote: "You employ stone, wood, and concrete, and with these materials you build houses and palaces: that is construction… But suddenly you touch my heart, you do me good. I am happy and I say: This is beautiful. That is Architecture." be inspired. live architecture.

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summer 2011 foreign investor edition . architecture 8

Documents

foreign real estate

real estate brokerage

percent of foreign investors

global trends countries

luxury properties

doubledip recess ion

specific home

edition useful