(Source: Bisnow) When the United States Citizenship and Immigration Services
released three years worth of EB-5 data this week, it confirmed what the
industry already knew: the foreign money is being unevenly allocated
toward large developers' projects in core markets.
The disputed visa program grants green cards to
foreigners who invest a minimum of $500K in U.S. developments
in high-unemployment areas. But the legislation has been widely accused
of being misused as a financing vehicle by developers seeking funding for
major projects in core markets, instead of targeting high unemployment or rural
areas — and the data agrees. Large regional centers maintained by
developers are getting a huge chunk of EB-5 investment. Upward of 26,000
petitions for visas nationwide were approved by USCIS between 2014 and
2017, The Real Deal reports, and while most of the country's regional
centers processed fewer than 100 petitions during that time period, major city
regional centers thrived. U.S. Immigration Fund, a regional center based in
Florida with New York and New Jersey branches, accounted for more than 3,100 of
the approved petitions — which is 17% of the EB-5 funds allocated during
that three-year period. Related Cos.' regional center in New York also
received a large portion of investment through the visa program, with 1,400
petitions approved since 2014, USCIS data reveals. There is also Gotham
Regional Center, operated by Silverstein Properties, which saw 477 approvals
during the period. USCIS also approved 269 petitions for Extell Development's
regional center, TRD reports.
EB-5 funding is behind some of
the country’s biggest projects in gateway markets, such as Related
Cos.’ Hudson Yards and Forest City Ratner's Atlantic Yards/Pacific
Park in New York, The Wharf in Washington, D.C., and Paramount Miami
Worldcenter in Miami. Kushner Cos. is also seeking EB-5 funding for two
residential projects — Trump Bay Street and One Journal Square —
which came under fire recently for name-dropping the companies’ ties
to the president and White House adviser Jared Kushner.
