The 5 Largest EB-5 Funded Projects Still Under Development
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It's not always easy for developers to find funding for their projects, especially when a project is massive. Enter EB-5, the program that incentivizes foreigners to invest in US developments by rewarding them with a visa if they pony up at least $500k in US projects employing at least 10 workers. Since the program's inception in 1990, nearly $9B has been invested in US commercial real estate through EB-5. Of the many projects EB-5 has helped fund over the years, following are the five largest still under development.
1. Hudson Yards
EB-5 Funding: $800M
Project Completion: 2024
Manhattan's enormous 17M SF mixed-use Hudson Yards project has a $20B price tag, and EB-5 cash has been a welcome help to make ends meet. It's been such an important source of funding that developer Related Cos CEO Jeff Blau told the Wall Street Journal, "It's a very critical part of the puzzle." Blau added, "It's so big, there's not enough capital from any one traditional source." While the development isn't expected to be complete until 2024, the first few buildings have already opened.
2. Pacific Park
EB-5 Funding: $577M
Project Completion: Unknown
Formerly known as Atlantic Yards, developer Forest City Ratner first unveiled plans for this 22-acre megaproject in 2003 and expected it to take 10 years to complete. Fast forward to today and while the project has been notoriously delayed, it has made significant progress. The site includes the Barclays Center and will eventually include a public school, at least six apartment towers, and office and retail space. Shanghai-based Greenland Holdings bought a 70% stake in the $5B project in 2013.
3. Hunters Point Shipyard
Location: San Francisco
EB-5 Funding: $250M
Project Completion: 2027
Developed by Lennar Corp, this $8B project at the former Hunter Point military base has been in development since 1999 and the money from about 500 foreign investors was vital for its final push. When complete it will boast 12,000 housing units and at least 5M SF of mixed-use commercial space. The Shipyard has 110 homes already occupied and another 500 planned for completion by 2020. After that, a second phase will add another 4,275 homes by 2027 along with studio and exhibition space for 300 artists.
4. 701 Seventh Avenue
EB-5 Funding: $200M
Project Completion: 2017
Set to open next year, this 39-story mixed-use development will house Manhattan's second EDITION Hotel, 76k SF of retail and an 18k SF outdoor sign. The sign is obligatory, seeing as the building is in the heart of Times Square. The Witkoff Group purchased the building marketed solely as retail and has redefined it through a partnership with Marriott.
5. City Point
EB-5 Funding: $200M
Project Completion: 2020
Developed by Acadia Realty Trust, Washington Square Partners and BFC Partners, City Point received 42% of its funding from EB-5 money. The development will have affordable housing units, at least 675k SF of retail and access to a subway station. Speaking of affordable housing, 88,000 people applied for the 200 units available at City Point, giving each applicant a 1 in 436 chance of getting a spot.