Apparel Vet Finds Fit in Real Estate

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Not long ago, Frank Yuan could be found operating a Las Vegas trade show for apparel manufacturers. The ASAP International Holdings Inc. chief executive launched his career in the apparel industry decades ago, but recently shifted his focus to capitalize on the growing L.A. real estate market.

After the market crashed and property values plummeted in 2009, he realized that investors with cash at the ready could make substantial returns on real estate investments. That year, he told a few wealthy Chinese friends he had made in the apparel industry that they should seriously consider investing in commercial real estate.

ASAP has since helped several Chinese investors purchase properties throughout California. The firm’s clientele is small, consisting only of a state-owned Chinese company and several private family trusts, but Yuan said he has been friends with each of the investors for more than 10 years.

Each company, Yuan said, has deep pockets and a desire to invest in a range of four-star hotels in the United States. To date, ASAP has helped finalize a dozen deals in the United States, with five in California.

“We focus on hospitality because hotels have much higher returns than apartments, shopping centers and office buildings,” he said.

Hotels, however, can be riskier investments. He advises his friends to acquire hotels that are already branded with recognizable names such as Marriott, Hilton, Sheraton and Holiday Inn to reduce risk.

Still, with each hotel chain comes a long list of expectations and rules, Yuan said, something many Chinese investors aren’t accustomed to.

“What they know or are doing best in China may not apply in the U.S.,” he said. “A company like us in between is really needed to be successful in investing in the U.S. because we understand both countries’ cultures and thinking.”

Regardless of any cultural differences, Yuan predicts that investments from Chinese companies will continue to grow, especially as more immigrants move to Los Angeles each year. The relatively close proximity to China also helps drive investors’ interest, he said.

“The Chinese love to invest in all different major cities that have high Chinese populations,” Yuan said. “Plus, the returns on real estate investments in China are less and less every day.”

– Cale Ottens

CONSULTANT

Frank Yuan

Title: Chief Executive

Company: ASAP International Holdings Inc.

Location: Rosemead | Age: 66

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