In a surprise move, American International Group (AIG) has decided to return to real estate investing in 2012, which is a good sign for the market.
After recovering from the recent meltdown, AIG seems to be back in full swing. The company is looking to fund a variety of residential and commercial projects, and has its eyes on a mixed-use development in Montclair, New Jersey. According to individuals familiar with the project, it’s in the $100 million range.
Real estate investors in the United States should watch AIG closely to get a feel for the company’s investments and overall approach. After all, AIG is large enough to single-handedly affect the prices of local real estate and, quite possibly, throughout the nation.
After paying back a majority of the $182.3 billion federal bailout, it looks like AIG is right on track. Only time will tell if stepping back into the real estate game was a good idea.
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