Richard Alter has been sourcing real estate deals for Chinese investors for more than two decades, working closely with Asia Pacific Capital Co.’s Eddy Chao. He took both bachelor’s and master’s degrees from USC before going to work in corporate finance in New York. He came back to Los Angeles and teamed up with Chao in the late ’80s after deciding he’d rather work for himself. Now, like Chao, he increasingly works with prominent, well-funded Chinese investors. Many of the acquisition deals he has helped facilitate in the last few years have been for hotels, including the Sunset Tower Hotel in Hollywood and the Marriott Torrance Hotel.
When and why did you start working with Chinese investors?
In 1989 I analyzed and foresaw an early opportunity to work on the ground floor of emerging Chinese investment in the U.S. market. I was one of the very first to visit the People’s Republic of China, when times there were very different.
Why are the Chinese investors you work with interested in L.A. real estate? Why are they investing now?
Los Angeles is the No. 1 gateway to Asia and China. It has Chinese infrastructure, a Chinese population, quality education, relatively low cost high-end housing, and safety and transparency of investment. Since the new regime and rules in China, the motivation to invest in the U.S. has become very high.
What surprises Chinese investors most about their real estate dealings in Los Angeles?
Business deals here are reliable; we do what we say, our word is good and people don’t cheat others on every deal. The investors really appreciate that.
What challenges do they continue to face investing in Los Angeles?
It’s very difficult to source great commercial investment deals in Los Angeles because it really is all about who you know and relationships.
What types of real estate investments are your clients making?
They look for larger opportunities, such as land or other development opportunities, and residential properties. They also like hotels and office properties because it’s an asset class that’s familiar to them. They’re interested in these types of properties, particularly in downtown, because it’s an environment more like where they came from.
Where do your clients see opportunity for future investment?
They still see opportunity in Los Angeles, and Las Vegas is set to boom again. Dallas will be terrific, Seattle is great but San Francisco is too expensive and New York is already at the top of the cycle.
– Bethany Firnhaber
ADVISER
Richard Alter
Title: Managing Director
Company: Financial Capital Investment Co.
Location: Downtown Los Angeles | Age: 58
