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

Miami /
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
Photo courtesy of David Iglesias
Boca Beach House condo project scores $43M construction loan
Boca Beach House condo project scores $43M construction loan
Nick Rojo and Jeff Burns (Affiliated, iStock)
Affiliated Development launches $125M workforce housing fund
Affiliated Development launches $125M workforce housing fund
Tom Cabrerizo and 6790-6880 Southwest 80th Street (Google Maps)
Developers score $15M construction loan for Miami townhouse development
Developers score $15M construction loan for Miami townhouse development
Triton Center (iStock)
Questions surround $50M in EB-5 investments tied to former INS building: lawsuit
Questions surround $50M in EB-5 investments tied to former INS building: lawsuit
Michael S. Liebowitz and Russell Galbut (Linkedin)
Russell Galbut and partner launch blank check company, plan to raise $100M
Russell Galbut and partner launch blank check company, plan to raise $100M
Southland Mall, 20505 South Dixie Highway in Cutler Bay with JLL's Tom Hall and Danny Finkle (Google Maps, JLL)
Southland Mall’s troubled $65M CMBS loan for sale
Southland Mall’s troubled $65M CMBS loan for sale
Alan Ojeda and 8894 NW 44 Street in Sunrise (Google Maps)
Rilea Group scores $46M construction loan for Sunrise apartments
Rilea Group scores $46M construction loan for Sunrise apartments
Yard 8 and Wood Partners CEO Joseph Keough (Courtesy of ACRE)
Wood Partners lands $86M refi for Midtown Miami apartments
Wood Partners lands $86M refi for Midtown Miami apartments
arrow_forward_ios

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

Loading...