Tishman Speyer is soliciting funds for the redevelopment of Macy’s former Brooklyn headquarters on Fulton Street, according to marketing materials provided to prospective Chinese investors.
The developer is looking to raise $60 million in mezzanine financing using the EB-5 program, an immigration scheme that allows foreigners to obtain green cards by investing at least $500,000 into U.S. developments.
EB-5 capital is slated to account for just 12 percent of the total $491 million funds being raised for the project, according to the materials, first spotted by Wall Street Journal reporter Eliot Brown. The remainder will be financed with equity from the developer and through a $210 million construction loan.
Tishman Speyer struck a deal to buy the 378,000-square-foot Downtown Brooklyn property last year for $170 million and has plans to redevelop it into offices as well as a smaller retail space in which Macy’s can remain. Under the agreement, Macy’s will occupy about 310,000 square feet across five floors and Tishman Speyer will contribute an additional $100 million toward the renovation of the store over the next three years.
Construction is slated to begin this year on the project, at 422 Fulton Street.
It’s not the first time Tishman Speyer has tapped the EB-5 spigot in recent months. The developer is also seeking to raise $145 million in EB-5 financing for two office towers it plans to build in Long Island City, The Real Deal previously reported.
The new buildings, which will be known as 1 and 3 Gotham Center, will be directly across the street from where Tishman and partner H&R are already building a three-building, 1,900-unit luxury residential complex.
A spokesperson for the developer was not immediately available for comment.