Citi Bank Warns Clients to Steer Away from Gateway Cities
Despite the commercial property index being up 94% in the last six years, Citi Private Bank head of private equity and real estate Dan O’Donnell is steering his clients away from properties in New York, London, Boston, San Francisco and Los Angeles, reports Barron's. While O’Donnell admits that his clients are clamoring for commercial developments across the map—he has invested over $6B in properties like 432 Park Ave (pictured)—the market has become so intense that he insists his clients look on the periphery markets. Dan says these markets, such as Brooklyn’s Boerum Hill and south of Market Street in San Francisco, have changing demographics that make them gold mines waiting to happen. However, Dan also insists that a client should only invest in a property when their interests are aligned with the developer and the property's firmly in the “shovel-ready” phase. [Barron's]
