The words “commercial real estate investment” might not immediately conjure images of South America, but many nations on that continent harbor immense opportunity for investors and developers alike. What is the crucial piece of the puzzle to tap into these promising markets? Access to capital.
“Banks and other traditional lenders often overlook the immense opportunity in South America because they are afraid of perceived risk,” said Kevin Wolfer, CEO of Kennedy Funding. “What they don’t realize, though, is that the rewards far outweigh the risks south of the border. For developers who see that potential, it’s important to partner with a lender flexible enough to connect them with the needed capital.”
While South America is home to many historically-troubled economies and political instability, keen eyes see the immense opportunity and ongoing growth in the continent’s continually developing commercial real estate markets. You need a lender with a vision to match yours, and Kennedy Funding is that lender.
1. Colombia
Colombia’s economy is growing. This is especially true in the commercial real estate sector. The country has put significant investment into infrastructure and commercial development, in an effort to connect the country’s ports to inland cities of all sizes.
Nowhere is this truer than the city of Medellin. The city boasts a beautiful aesthetic and a host of recreation options, from museums and theaters to dozens of parks. Rental properties are a big draw in Medellin, especially in the neighborhoods of El Poblado and Laureles.
2. Argentina
In Argentina, Buenos Aires is a major draw for commercial real estate investment, attracting high profile deals from Sam Zell and Goldman Sachs on a massive project that includes an office park and a mall. That deal is being heralded as a bellwether for the entire region, with many observers saying a new Latin American real estate boom is on the way.
Argentina’s commercial real estate sector began to look up with the 2015 election of the business-friendly Mauricio Macri administration. Under Macri’s leadership, the Argentinian economy has resumed expansion, growing for multiple consecutive years.
3. Uruguay
Known as the “gateway to South America,” Uruguay offers a few options to commercial real estate investors. The first, and possibly most attractive, is the growth of rental properties in the capital city of Montevideo. There is also massive demand in Uruguay for energy efficient and eco-friendly buildings, creating new opportunities for LEED-certified developers who want to send their expertise abroad.
Uruguay is ranked first in Latin America in terms of democracy, peace, and quality of life, lending it an element of stability and certainty that is sure to comfort investors. The country also offers favorable income tax policies and no restrictions on foreign buyers, making it a primetime location for foreign commercial real estate investment.
4. Chile
The Chilean commercial real estate landscape is driven largely by both rental properties and office space in the city of Santiago. There is also a great deal of activity in the industrial real estate arena, which helps bolster both factors driving the commercial real estate markets. The country is recovering from a economic downturn and looking increasingly stable. Chile also boasts a low-level of corruption, making it safer and easier to invest. Coupled with a high standard of living at a relatively low cost, it’s an attractive country for investment.
5. Brazil
Following the political turmoil of 2017, Brazil’s once booming commercial real estate industry suffered a bit of a drop. However, it retains a place on this list because prices have stabilized through the first half of 2018 and offered investors a prime opportunity to buy the dip. Rio de Janeiro remains a highly attractive market due to its high levels of tourism and lucrative rental properties, but São Paulo, Belo Horizonte, and Porto Alegre all remain stable markets as well, offering investors in Brazilian commercial real estate several markets from which to choose.
Kennedy Funding is your international lending partner
Foreign commercial real estate projects require the trust, confidence and expertise of an experienced international lender. Kennedy Funding is a leader in international lending, regularly closing loans throughout the Caribbean and South America. Where conventional lenders say no, and other private lenders are uncertain, Kennedy is ready and willing to finance your projects and acquisitions. Learn more about the recent deals we’ve closed abroad.
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