acquisition due diligence Archives

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

23.11.2020 News about acquisitions and financing, News about global real estate consulting, News about office and industrial properties, Real Estate Consultants, StoneCreek Partners News and Research

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

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.

Hotel Project Feasibility Consultants

22.11.2020 News about hotels and destination resorts, News about redevelopment and regeneration, StoneCreek Partners News and Research

Our work as hotel project feasibility consultants starts with market analysis and the feasibility of new development, the acquisition and disposition of properties, and a role as owner representative and asset manager on behalf of owner.

Of course, as the hotel industry manages through the difficult circumstances wrought by the Covid-19 pandemic, the focus of much of our consulting work has necessarily changed. Operating occupancies in the U.S. remain at or about 40% (less in many international regions) and travelers have changing preferences for their accomodations.

As a real estate investment asset class, branded hotels and resorts are now in a period of focused reexamination.

Many hotel branded products that have depended upon corporate meetings and travel, are currently obsolescent from an economic standpoint, while other lodging products are proving almost pandemic-proof. As one of the significant real estate investment asset classes, branded hotels and resorts are now in a period of focused reexamination.

Some examples of our recent work as hotel project feasibility consultants, include:

Planning as part of collaborative design teams, to support client mixed-use redevelopment opportunities, particularly as part of solutions for failing shopping malls;

Feasibility, business planning, and conceptual design for new glamping and eco-resort products, recreational vehicle (RV) parks and campgrounds, as well as major recreation adventure resorts;

Assistance to local governments in restarting regional visitor destinations, as a means of boosting local economic development;

More traditional consulting support, such as project feasibility studies for new development, and due diligence for client acquisitions – whether single properties or portfolios.

Our firm’s essential value to clients is our hands-on experience in designing, developing, and operating projects and businesses. StoneCreek Partners is led by co-founder Donald Bredberg and his substantial experience as an executive with The Irvine Company, NBCUniversal, and the Riyadh-based family office of Newfield Enterprises International.

Glamping accommodations conceptual design - Adventure Entertainment Cos.

Glamping and eco-resort accomodations are likely to do well in coming years, as travelers adapt to a world of social distancing and health concerns.

The firm was first established in 1984 in Los Angeles, and is now headquartered in Nevada. Our work as hotel project feasibility consultants got started shortly after the firm’s founding. In those early days, as part of managing a portfolio of luxury hotels for a Saudi family office, our firm’s co-founder Donald Bredberg was one of the initial founder members of the Hotel Asset Manager’s Association.

Additional information about our hotel and resort consulting practice, is available at the link below:

StoneCreek Partners – Hotel, Resort, and Accommodations Consulting Practice

05.06.2019 Economic Development Growth Monitor, StoneCreek Partners News and Research

— StoneCreek Partners Launches Project Feasibility Services for Opportunity Zones

real estate expert witness - Global Real Estate Consultants

Dubai Real Estate Matters – Expert Witness

16.10.2018 Project Consultants for the MENA Region, Real Estate Expert Witness

Affeld Grivakes, LLP | Expert witness support, confidential assignment.

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