Tishman Speyer looking to raise EB-5 capital for Macy’s redevelopment plan

Developer’s DoBro project is being pitched to Chinese investors

New York /
Mar.March 29, 2016 04:50 PM

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.


Related Articles

arrow_forward_ios
From left: President Donald Trump, Blackstone's Jonathan Gray and Tishman Speyer's Rob Speyer (Getty)

Real estate execs, business leaders urge Trump to begin transition

Real estate execs, business leaders urge Trump to begin transition
The skating rink at Rockefeller Center (Getty)

Tishman Speyer cuts short Rock Center rink season — and not due to Covid

Tishman Speyer cuts short Rock Center rink season — and not due to Covid
Maria Rioumine and Ryan Gibson (Agora, iStock)

Tishman Speyer, Suffolk back supply-chain startup

Tishman Speyer, Suffolk back supply-chain startup
Tishman Speyer CEO Rob Speyer, COO Paul Galiano, CIO Jenny Wong (Photos via Getty; iStock; Tishman Speyer)

Tishman Speyer jumps on the SPAC bandwagon

Tishman Speyer jumps on the SPAC bandwagon
Clockwise from left: 950 University Avenue in the Bronx, 27-55 Jackson Avenue in Queens, 149 Pioneer Street in Red Hook and 416 Metropolitan Avenue in Williamsburg (Google Maps)

EB-5 investor snags Hunters Point resi development: Mid-market sales report

EB-5 investor snags Hunters Point resi development: Mid-market sales report
From left: Tishman Speyer CEO Rob Speyer, Fiorello LaGuardia and Robert Moses. Inset: Hiten Samtani and Charles Bagli (Getty Images, Wikipedia Commons)

Tuna fish sandwiches and billion-dollar deals: Charles Bagli on other people’s money and the next life of New York

Tuna fish sandwiches and billion-dollar deals: Charles Bagli on other people’s money and the next life of New York
Jeff Blau and Hudson Yards (Getty, WIkipedia)

Hudson Yards’ EB-5 investors demand arbitration with Related

Hudson Yards’ EB-5 investors demand arbitration with Related
Related's Stephen Ross and Jeff Blau with Hudson Yards (Getty, iStock, Wikipedia Commons)

EB-5 investors to Related Companies: Open your books

EB-5 investors to Related Companies: Open your books
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...