Last week in Singapore, Ralph Cram, President and Manager of Envoy Net Lease Partners, took time out to present his thoughts on investing opportunities in the U.S. net lease real estate market with a local audience of investors and financial consultants.
Among Mr. Cram's comments:
"Asian real estate investment in the United States is thriving," Mr. Cram said. "In the past few years, Chinese nationals nearly doubled their investment in U.S. real estate from US$8.2 billion in 2012 to US$14 billion in 2013."
Mr. Cram noted that the U.S. net lease market has been growing in popularity and that foreign investors have become major acquirers of net lease properties as a wealth preservation strategy.
"In 2013 alone, nearly 50,000 net lease transactions occurred in the U.S. totaling US$104 billion, with the average investment equaling US$2.1 million," he said, adding that single tenant retail stores, office buildings, industrial properties and medical facilities all fall within the net lease property category.
"This real estate investment is accessible to a majority of high-net-worth investors for direct investment," Mr. Cram said. "They (net lease investments) are an ideal solution for long distance investors who desire a predictable, bond-like return."
Mr. Cram, who has underwritten, acquired or financed US$1.5 billion of real estate assets across all product types and U.S. domestic markets over his 25 years in commercial real estate, told the Singapore audience that as Asian investors and their wealth advisors look to invest in the U.S., "they should consider the U.S. Net Lease Market for capital preservation, appreciation, current income and liquidity."
Net lease properties are single tenant properties where the tenant’s initial lease term is a minimum of 10 years and it pays all property-related expenses (taxes, insurance and maintenance).