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
Vanbarton Group’s Gary M. Tischler and Richard Coles with Marble Collegiate Church at 1 West 29th Street (Getty)
Vanbarton Group, church sued by foreign investors in fallout from HFZ debacle
Vanbarton Group, church sued by foreign investors in fallout from HFZ debacle
The Jacx at 28-07 Jackson Avenue and Tishman Speyer’s Rob Speyer (The Jacx, Tishman Speyer)
What tenants pay at Tishman Speyer’s The Jacx in LIC
What tenants pay at Tishman Speyer’s The Jacx in LIC
A rendering of The Jacx at 28-07 Jackson Avenue and Tishman Speyer's Rob Speyer (Tishman Speyer, Getty)
Tishman Speyer gets $425M loan for The Jacx in Long Island City
Tishman Speyer gets $425M loan for The Jacx in Long Island City
Tishman Speyer CEO Rob Speyer with ByteDance CEO Zhang Yiming and an aerial of The Springs (Getty, Tishman Speyer)
Tishman Speyer’s Shanghai bonanza: ByteDance buys four buildings
Tishman Speyer’s Shanghai bonanza: ByteDance buys four buildings
Sens. Chuck Grassley and Patrick Leahy (Getty)
Trouble in EB-5 land: Congress at impasse on extension
Trouble in EB-5 land: Congress at impasse on extension
Photo illustration of Tishman Speyer Properties President Rob Speyer and Brookfield Asset Management CEO Bruce Flatt (iStock, Getty)
Office investors Tishman Speyer, Brookfield put money where mouth is
Office investors Tishman Speyer, Brookfield put money where mouth is
Oceanwide’s US business is sinking. Can it right the ship?
Oceanwide’s US business is sinking. Can it right the ship?
Oceanwide’s US business is sinking. Can it right the ship?
Hudson Yards (iStock)
EB-5 program set to expire at the end of June
EB-5 program set to expire at the end of June
arrow_forward_ios

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

Loading...