Chinese nationals scrambling to get EB-5 visas amid fears investment minimums will rise

Los Angeles /
Mar.March 27, 2017 12:00 PM
 

From the New York website: As Congress debates raising the minimum investment from $500,000 to $1.35 million, potential investors in China are doing whatever they can to get their EB-5 visa applications in before the current program is set to expire April. 28.

Changes to the program would have an outsized impact on developers who rely on EB-5 funds for their projects.

“Any interruption of the program or reduction in Chinese participation would have a meaningful effect on a development cycle that is already showing signs of strain in certain key U.S. cities,” Michael Shaoul, CEO at Marketfield Asset Management, told Bloomberg.

One of the biggest obstacles is how to get $500,000 out of China as officials there have cracked down on outbound capital.

Shanghai resident Kevin Tai, an EB-5 investor in Extell Development’s Central Park Tower, used his home as collateral to get a $500,000 loan from Hong Kong’s Hang Seng Bank, which is an easier way to get cash rather than trying to get yuan over the border in large sums, according to Bloomberg.

That route is closed now.

A top EB-5 regional center told The Real Deal last month that an investment minimum of $1.35 million would effectively ice the program. “I think you would see as much as a 90-percent drop-off in demand,”said Angelique Brunner, a spokesperson for the EB-5 Investment Coalition.

On Monday, TRD detailed how many Chinese buyers in New York are taking out traditional mortgages to finance apartment buys. [Bloomberg]Rich Bockmann


Related Articles

arrow_forward_ios
LoanCore Capital CEO Mark Finerman and 4707 Venice Boulevard (Google Maps)
Ralphs-anchored Mid-City mall nabs $64M refi
Ralphs-anchored Mid-City mall nabs $64M refi
Combined Properties Chairman Ronald Haft, AECOM Capital CEO Warren Wachsberger and Pendry West Hollywood
AECOM JV lands $500M loan on boutique hotel-condo
AECOM JV lands $500M loan on boutique hotel-condo
Renderings of the Little Tokyo Service Center (KoningEizenberg) 
$275M approved for LA affordable housing projects
$275M approved for LA affordable housing projects
Josh Zegen and rendering of 21555 Oxnard Street (iStock, Google Maps)
Madison Realty Capital provides $34M loan-on-loan for Warner Center redevelopment
Madison Realty Capital provides $34M loan-on-loan for Warner Center redevelopment
Brookfield CEO Brian Kingston and 725 South Figueroa Street (Google Maps)
Brookfield lands $305M refi for Ernst & Young Plaza in DTLA
Brookfield lands $305M refi for Ernst & Young Plaza in DTLA
Interest rate drops spur loan requests from multifamily borrowers (Credit: iStock)
Multifamily owners rush to refinance their mortgages
Multifamily owners rush to refinance their mortgages
Best of TRD 2019 promo
Coming soon: The Real Deal’s Best of 2019
Coming soon: The Real Deal’s Best of 2019
2201 Rosecrans Ave in El Segundo
Continental snags $55M refi on El Segundo office portfolio
Continental snags $55M refi on El Segundo office portfolio
arrow_forward_ios

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

Loading...