The Real Deal New York

How much longer will the EB-5 love affair last?

Part II of TRD’s five-part investigation on the "crack cocaine" of real estate financing — and who’s profiting from it

April 07, 2016 10:32AM
By Katherine Clarke and E.B. Solomont

Source: Research by NYC professors Jeanne Calderon and Gary Friedland, TRD Research and EB-5Projects.com

Source: Research by NYC professors Jeanne Calderon and Gary Friedland, TRD Research and EB-5Projects.com

From the April issue: It’s no secret that New York City developers have over the past few years been tapping the EB-5 spigot. Giant builders like Macklowe Properties, Extell Development, the Witkoff Group and the Related Companies have all helped themselves to the relatively cheap capital they can access through the program.

But now, the relative affordability of EB-5 cash compared with traditional financing — the main draw of the program — is being compromised by strong developer demand, increased competition for Chinese investors and a rise in the fees charged by intermediaries, sources told The Real Deal. [more]

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