18 Jun 08 
Foreign Investors Plan to Spend $1 Billion on Florida Real Estate
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The Florida Prime Residential Opportunity Fund has been created by London-based Strategic Real Estate Advisors, with the intent of investing $1 billion in Florida luxury homes that are bank-owned. Strategic Real Estate Advisors is more commonly known as the asset management firm that invested in London’s Heron Tower; however, the firm is now managing the $1 billion generated by several wealthy Europeans and Middle Eastern individuals.
The plan is to buy homes that have been foreclosed on, oceanfront condominiums, and undeveloped land that is approved for housing, and then sit on the homes for a minimum period of seven to ten years.
Real estate advisor—Jack McCabe, CEO of McCabe Research & Consulting of Deerfield Beach, Florida—believes that if the group has the time horizon, that they will be much better off.
McCabe stated, “In a market like Miami, there’s a lot of inventory to clear and the litigation surrounding foreclosures will draw things out for years.”
Strategic Real Estate Advisors’ CEO—Pierre Rolin said, “We’re in no rush.” Rolin estimated that the newly developed investment fund could purchase homes for around $400 a square foot, in a market that currently sales luxury homes for about $500 a square foot; down from more than $1,000 during the housing market peak of 2006.
Tags: bank owned, deerfield beach, florida, florida prime residential opportunity fund, foreclosed homes, foreign investor, housing market, jack mccabe, london england, mccabe research & consulting, miami, pierre rolin, reo, strategic real estate advisers
