Hollywood-based MG3 Developer Group recently closed on a $30 million loan for a charter school site in western Delray Beach. But it wasn’t loan from a traditional bank – it was from a private lender that works with EB-5 funds.
The popular EB-5 immigrant investor program has been used as a source of funding for South Florida real estate projects such as SkyRise Miami, the Riviera Pointe Corporate Center, the Residence Inn Flagler in Miami, the Hilton Canopy in West Palm Beach, and the Block 40 mixed-use project in Hollywood.
EB-5 is an immigrant investor program that offers a path to citizenship for an investor and their family in exchange for a $500,000 or more investment and strict job creation requirements among other conditions. EB-5 isn’t permanent however – Congress needs to extend the program. Congress voted for a short term extension in September, but will have to double down and extend EB-5 again in December.
For developers like MG3, which uses EB-5 as just one of many different funding sources. For this particular project, the developer is building a charter school in western Delray Beach on five adjacent properties.
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