Hushmand Sohaili Comments on U.S. Real Estate Market and Broadening Chinese Investor Base

Akin Gump real estate partner Hushmand Sohaili was quoted by Law360 in an article looking at the broadening base of Chinese investors in U.S. real estate and the issues that arise when non-real estate firms make large U.S. investments.

The article notes that deals involving such investors are becoming more complex since they often include those unfamiliar with the U.S. market. Some Chinese companies are also finding they have to partner with other developers to obtain the necessary real estate knowledge.

Sohaili said it is reminiscent of the late 1980s when many Japanese real estate companies entered the U.S. market, followed by banks and other non-real estate companies. “As the broadening goes on, it shows that [the Chinese are] here to stay,” he said. “The other thing that shows that they’re here to stay is that you see the banks participating.” Sohaili predicted that the Chinese investors will eventually broaden further to include manufacturing companies.