Ronnie Fieldstone, Partner with the Miami law firm Arnstein & Lehr, joins The Commercial Real Estate Show to discuss the EB-5 program and its effect on the real estate industry. The EB-5 Visa program allows investors in approved commercial real estate developments to apply for permanent residency in the U.S. Highlights include:
- EB-5 has been around since 1992, but became popular during the recession of 2008 and 2009 as a method for attracting investors lured by the USA citizenship benefits
- EB-5 started to become increasingly popular in the years following
- Has accounted for billions of dollars of investment in the United
- Represents a capital source that is subordinate to senior financing and non-recourse at a low cost to developers
- Possibly 50% or more of New York projects are using EB-5 financing
- Works via licensed regional centers, which have territories where they do business
- The mechanics of an EB-5 investment, how the money flows, etc., is discussed
- Even with EB-5 financing, developers should budget 20% or so in equity to fund