EB-5 fund suing developers of long-stalled Westchester condo project

Advantage America EB-5 Group filed a $5M suit against EMC Bronxville Metropolitan

TRD New York /
Aug.August 24, 2018 06:00 PM

The Bronx overlayed with passport stamps (Credit: iStock and Wikipedia)

A Manhattan-based visa investment fund is suing the developers of a condominium development in Westchester.

Advantage America EB-5 Group is seeking $5 million from EMC Bronxville Metropolitan, claiming the developer’s condo project is in default, Westfair Online reported.

EMC’s condo development has been stalled for years. The idea of converting the former warehouse into 61 luxury loft-style apartments was first floated when Metropolitan Life Insurance Company sold its premises at 759 Palmer Road in 2006.

In order to help get the plan off the ground, Advantage American brought an undisclosed number of EB-5 investors to the Bronxville development and provided EMC — then known as MetLoft — with $5 million in 2015.

But the developer now appears to be in default, with its contractors having filed an involuntary petition to bring EMC into bankruptcy.

Two months ago, on June 22, the project’s architect, Thomas E. Haynes; an engineer, Werner Tietjen; and Hall Heating & Cooling Service filed a motion to recover $201,678 in owed expenses. On July 23, the White Plains bankruptcy court relabeled the case as a bankruptcy procedure, providing EMC with the opportunity to reorganize and pay its creditors over time.

Extended by Congress earlier this year, the EB-5 visa program grants permanent residency to foreign nationals who invest at least $500,000 toward job-creating enterprises. [WestFair Online] – Patrick Mullholland 


Related Articles

arrow_forward_ios

Big changes are coming to the EB-5 program

With Chinese investment drying up, EB-5 debt isn’t nearly as cheap

City still has no plans for the languishing New York Wheel site

Miami developer pleads guilty to EB-5 fraud, money laundering at failed Palm Beach hotel

EB-5 projects 702 Seventh Avenue and The Wheel (Credit: iStock)

EB-5’s WeChat wars

NoMad Ritz-Carlton secures $125M in EB-5 funds — but not from where you’d think

Developer dodges SEC suit over EB-5 projects, but legal troubles persist

Pacific Park EB-5 funds could end up in billion-dollar Manhattan developments

arrow_forward_ios