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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.

Life Sciences Real Estate Consultants

Life Sciences Real Estate Consultants

Our work as life sciences real estate consultants includes new facility project feasibility, owner representation for design-development management, and for due diligence in connection with facility acquisitions.

 

Life sciences real estate has been a favored investment asset class for some time now, and the Covid-19 pandemic of 2020 has only propelled investor interest in these assets.  Real estate matters related to the life sciences industries, involve companies, research universities, and government agencies working in fields such as pharmaceuticals, biotechnology, genetics and genomics, medical devices, and the like.   Many life sciences organizations are involved in original research and clinical trials, often in BtoB joint ventures and public-private arrangements.

 

Life sciences projects can be higher risk than other form of tenant-occupied real estate, given the cost premium for such facilities.

 

Facilities intended for occupancy by life sciences companies are a unique form of real estate.  As a result, investors know that purpose-built life sciences facilities can be significantly more expensive than more ordinary general-purpose office and industrial space.   Base building work, proper ventilation, security, ceiling heights, waste disposal, all such factors can make a life science campus with significant laboratory space as much as 50% more expensive than normal office space.

 

Our consulting services include:

 

  • Project Feasibility Consultants – Our project feasibility work for life sciences facilities takes into account that market supply and demand issues common to any real estate feasibility study, but also the additional factors that drive the industry.   The quality and number of research universities in an area, the type of research occurring at these educational institutions, the track record for government funding of such research, and the presence of existing public-private collaborations are all important to life sciences real estate success.  Life sciences “clusters” featuring research universities and corporate R&D programs exist throughout the U.S.   Some are longstanding and with significant critical mass while emerging clusters are in early growth in many regions.

 

  • Owner Representation for Design-Development – As owner’s reps, we work with owner to identify and retain the best team for a particular development project, including design professionals, structural and mechanical engineers, and a general contractor with specialty subs.   We collaborate with potential tenants or owner-occupier end users for the life sciences campus, ensuring their facility requirements are delivered.

 

Additional information about our office and industrial project consulting practice, and our wok as life sciences real estate consultants in particular, is available at this link:

 

Office and Industrial Project Consulting at StoneCreek Partners

 

 

Life Sciences Real Estate Consulting

Work flow is the essential consideration in planning life sciences facilities. Desktops and cubicles are situated in particular ways for access to wet benches, incubation chambers, vivarium areas, and hazardous materials disposal.

Valencia MPC Retail

Newhall Land & Farming Co.  |  StoneCreek Partners was retained by a division Marketing Dept. of this major land development company to provide advisory services in connection with ongoing business planning efforts. A focus of the work was the build-out of the retail portfolio of neighborhood and community shopping centers.

 

The project focused on application of business planning methods to support planned levels of more comprehensive future land development, including builder land residual analysis, methods of consolidating financial data for multiple projects, and aspects of financial reporting to senior management.

 

Each potential shopping center location within the master planned community, was evaluated for center type (neighborhood, community, regional, power, etc.) as well as for key anchors at each location.  Key anchors included grocery stores and c-store gas stations, among other key uses.

 

Valencia is located in the northwestern corner of the Santa Clarita Valley, a part of Los Angeles County in Southern California. In 1987, it was one of the four communities (along with Saugus, Newhall, and Canyon Country) that merged to create the city of Santa Clarita, California. Valencia was planned and developed over several decades starting in the 1960’s by The Newhall Land & Farming Company. Valencia’s master plan features paseos which allow a resident to travel around the entirety of Valencia without having to cross streets.

 

Office and Industrial Consultants

Los Angeles Downtown Mixed-Use – Partnership Deal Structuring

Parkhill Partners, LLC  |  Real estate project consultants providing feasibility and financial analysis support in support of master-plan by Parkhill Partners.   Parkhill was the development company for City Centre Development which was ultimately acquired for development Greenland USA, as The Metropolis.

 

The 161,000-square-foot site is between 8th, 9th and Francisco streets and the Harbor Freeway.

 

Opportunity Zone Consultants

Burton Station Urban Village

As real estate consultants for project feasibility, StoneCreek Partners provided feasibility analysis, a conceptual site plan and rapid-prototyping massing study, and business plan for proposed mixed-use urban village to be developed on infill properties in Virginia Beach, Virginia. Components of the urban village to include office space, main street retail, hotel, senior living, and for-sale housing.

 

In addition to the subject Project, the neighborhood in which the Project is situated continues to be a major focus for redevelopment and regeneration, for developments featuring for-sale housing, apartments, and shopping facilities.  One of the more recent developments in the neighborhood is Norfolk Premium Outlets, a Simon Property development which opened in June 2017.    A new regional IKEA store is now in development in close proximity, further enhancing the regional retail draw of the Project’s immediate neighborhood.

 

The Project site is well situated within the Hampton Roads region, just off the Hampton Road Beltway (Interstate 64).    The Hampton Road Beltway is the primary transportation route through the Hampton Roads region.   Hampton Roads refers to the Virginia Beach-Norfolk-Newport News, VA-NC metropolitan area, which includes the cities of Virginia Beach, Norfolk, Chesapeake, Hampton, Newport News, Portsmouth, Suffolk, Poquoson, and Williamsburg.   The resident population of the Virginia Beach-Norfolk-Newport News, VA-NC metropolitan area ranks among the top 50 metropolitan areas of the U.S.

 

Contact us for more information, we'll enjoy hearing from you.