An EB-5 developer in Miami plans to break ground on a $24 million Miami airport hotel this fall, marking the first of three hospitality properties in the works for Riviera Point Development Group in the Southeastern United States.
Rivera Point will launch RED, Radisson’s millennial-focused brand, at the site at 3450 Northwest 25th Street. Twenty-three investors, a majority from Venezuela, Colombia, Argentina and Ecuador, will provide $11.5 million in financing for the 155-room hotel, CEO Rodrigo Azpúrua told The Real Deal.
Funding via EB-5 is desirable because interest rates are often lower than traditional financing. In this case, investors earn 3.5 percent on their investments with no share on profits, Azpúrua said.
The popular visa program grants permanent U.S. residency to investors (as well as their immediate family members) who create at least 10 domestic jobs and invest at least $500,000 to $1 million in a U.S. business venture. In South Florida, EB-5 investors have targeted restaurants and projects like SkyRise Miami and the Hotel Astor redevelopment.
Riviera Point paid close to $3 million for the roughly 1-acre plot in November, records show. Modis Architects, including principal Ivo Fernandez, is designing the six-story hotel, which Carlson Rezidor Hotel Group will manage when it opens in 2018.
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