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

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.

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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]