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EB-5 Program Reauthorized

The EB-5 Program is Reauthorized

President Biden signed legislation today with the effect that the EB-5 program is reauthorized, in particular its Regional Center component, effective now through September 30, 2027.  The program is part of the EB-5 Reform and Integrity Act of 2022 (the “Act”), which itself is part of the Omnibus spending bill signed by the President.

 

The reauthorization of the Regional Center program follows an almost 9 month lapse, when prior efforts failed to extend the program beyond July 1, 2021.  The Regional Centers aspect of EB-5 have allowed foreign investors a special opportunity to invest in high-profile developments that they likely would not otherwise find accessible.  The EB-5 program had its controversies and numerous parties had worked to place safeguards to prevent fraud and encourage investment in areas that followed from the original intent of the program.

 

The EB-5 program allows foreign investors to invest a specified amount of capital into a U.S. enterprise that creates American jobs, in return for permanent residency.  With passage of the EB-5 Reform and Integrity Act of 2022, changes were made to the program to presumably improve its implementation.  The new legislation emphasizes compliance with EB-5’s intent along with enforcement procedures.   Program sponsors under EB-5 will face greater scrutiny in recordkeeping, investment types, audits, and investor communications.   The minimum EB-5 investment amount now increases to $800,000 from the current $500,000 for Targeted Employment Areas and Rural Areas,  and, changes to $1.05 million from the current $1.0 million for Non-Targeted Employment Areas.  These changed minimum investments apply to both regional center and direct EB-5 investments.

 

With the news that the EB-5 Program is reauthorized, a backload of foreign investors who were in the midst of processing last June, will hopefully soon see progress in the processing of their investment / visa applications.

 

The EB-5 Immigrant Investor Visa Program was created in 1990 by the Immigration Act of 1990.

Cold Chain Logistics is Attracting Investor Interest

Cold Chain Logistics is Attracting Investor Interest

Cold chain logistics is attracting investor interest as a real estate asset class, given its increasing demand across industries.   Although cold chain is a specialized kind of asset, it is part of the broad range of facilities within the office and industrial facility sector.

 

Cold chain logistics companies handle temperature-controlled and temperature-sensitives goods.  The logistics include all or part of the supply chain, including procurement, storage, transport, and distribution.   Refrigerated goods handled in the cold chain logistics industry include foods, beverages, and bio-pharmaceutical products (life sciences), among other items.

 

The increased investor interest in cold chain is interesting since many of the large operators and portfolios are somewhat historic having gotten their starts in the early 1900’s.   United States Cold Storage got its start in 1899, for example.   And Americold Realty Trust (Atlanta) traces its origin story back to 1903.

 

Now, newly-established global real estate conglomerates such as Constellation Cold Logistics S/A and Qualianz, each established in 2020, are bringing asset management and best-practices techniques from other industries.   And we’re seeing the acquisition and consolidation transactions to achieve operating footprints than can better support client supply chain issues, such as Lineage Logistics’s recent acquisition of Henningsen Cold Storage (in May 2020), and Americold Realty Trusts’ acquisition of Agro Merchants Group (The Netherlands)- also in 2020.

 

 

Cold Chain Logistics Facilities

 

 

For More Information

 

More information about the the cold chain logistics industry is available through our ongoing tracking services for clients.   A summary of some of this tracking information is available for review, clicking here ==>

Cold Chain Logistics Companies – the Latest

 

Truck Tonnage Declines in 2020

Truck Tonnage Declines in 2020, Through August

SCP’s The Economic Growth Monitor

 

Truck tonnage declines in 2020 included the fifth consecutive year-over-year decline in the U.S., through August 2020.   Freight transportation is a barometer of U.S. economic health, making monthly truck tonnage estimates a key indicator for local economic development officials.

 

Trucking represents an estimated 72.5% of tonnage carried by all modes.  According to American Trucking Associations, in 2019 trucks hauled 11.84 billion tons of freight.  The American Trucking Associations is the largest national trade association for the trucking industry.

 

Transport Topics reports on truck tonnage throughout the year.  Their most recent recap is available here: Tonnage Declines 8.9% Year-Over-Year in August

 

The American Trucking Associations’ press release about truck tonnage declines in 2020 is available here: Index 8.9% below August 2019.   According to the ATA, the apparent softness in truck tonnage was due to softness in the industrial and energy industries where truck loads are heavier, than any softness in consumer-related loads.   Fleets hauling for retailers reported strong freight volumes.  ATA calculates  U.S. tonnage volumes and index based on surveys from its membership and has been doing so since the 1970’s.

Office and Industrial Consultants

Groundleasing Practices – Port of San Diego

Management review of port district leasing practices, including lease administration and lease rate.

 

The Port of San Diego was interested in confirming whether or not its ground lease rates, issues of highest and best use, deal terms, and operating polices were at par with “best practices” at other world port districts, particularly, at U.S. West Coast port facilities. A study was undertaken concerning regional market conditions, competitive conditions at other world ports, “best practices” at such other ports, and other related factors. Recommendations were prepared for consideration by the Port of San Diego, with regard to lease rate-setting and deal terms.

 

The Port of San Diego is a special government entity, created in 1963 by an act of the California legislature in order to manage San Diego Harbor, and administer the public lands along San Diego Bay.

 

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