Shifting Skylines

Chinese Firms Invest in Chicago

By Erica Rascón on Nov 12, 2016 in News

Several landmark projects break ground in the U.S. just as headlines herald the slowdown of real estate investments by the Chinese.

According to a Bloomberg report, American real estate transactions with China are slowing down for the first time since 2011. The loss of momentum is a result of constraints issued by the Chinese government to minimize capital flight.

While new investments dwindle, the nation’s skylines are beginning to see the fruit of the past surge:

Hong Lei, consul general of China in Chicago, reports that Chinese firms have invested nearly $13 billion in real estate throughout the Midwest in the past 15 years. A recent project, which broke ground the summer, will be one of the nation’s largest investments.

With a cost of $950 million, Vista Towers of Chicago (rendering, left) will be the largest real estate investment by a Chinese company in the US. The project is a joint venture between America’s Magellan Development Group and China-based conglomerate Wanda Group.

The international presence of Wanda Group spans 300 million square feet of real estate, including retail, commercial, and hospitality. Vista will be the first notable project in The Windy City.

Jeanne Gang, a respected Chicago-based architect and MacArthur fellow, designed Vista Towers. Standing 93-stories tall, it will be the third tallest building in Chicago. The luxury site will include a hotel and 406 condominiums. Condo rates will range from $1 million to $18 million.

Across the country, Los Angeles records that China is responsible for seven out of 18 land deals made since 2014.

Oceanwide Plaza (rendering, left) will be one of the largest Chinese investments in Los Angeles. With an estimated cost around $1 billion, the nearly 5-acre site will hold three towers including a hotel, 150,000-170,000 square feet of retail, and a currently undisclosed quantity of residential units.

At a cost of $6.9 million, Metropolis looms as another expansive mixed-use developments along the Pacific coast.  The Greenland Company project will offer 1,500 residential units, an 18-story luxury hotel, and 70,000 square feet of retail. Residences range from $500,000 to $6.9 million.

Chinese investments in American land and real estate may have slowed down but they are far from a denouement.