The expectation of future inflation, combined with confidence in U.S. stability, began to working together in 1974 to attract foreign investors to key real estate projects, "even before inflation assumed major proportions here."
That is what Atlanta's Charles Ackerman told more than 260 Washington commercial realty specialists at a seminar held at the Mayflower Hotel this week.
Ackerman, an adviser to several business groups in Holland and Great Britain, said that investors from those countries are still making what they consider to be safe buys for their pension funds in well-located, developed areas of the Sun Belt states. "Those are the growth areas," he noted.
Ackerman said the foreign investors usually have U.S. advisers to guide them in making investments. He urged brokers offering properties to "have all the facts" and to present attractive buildings. "The demand is incredible for good buildings if you have the necessary information," said Ackerman.
Edmund Cronin, a mortgage banker who heads a Washington realty firm, said that life insurance companies are making more investments in real properties today rather than merely providing long-term mortgage financing.
Carville Cross, a mortgage banker here, said that "immediate funding" is available for commercial financing but that long-term rates now are in the range of 12 3/4 to 13 1/2 percent, with some rate readjustment written into the contract after the first three years. He also said that a developer must be prepared to provide a share in the ownership to a major institutional lender to make a deal click today.
The seminar was sponsored by the Washington Board of Realtors.