The wildly popular EB-5 program, which grants green cards to foreign investors, is set to expire today, raising big questions for both developers and investors.
With the mass influx of foreign capital, EB-5 has been a winner among Chinese investors, with 90% of EB-5 visas granted going to China, pouring in nearly $4B since 2009 along the way.
Developers, big and small, are bullish on EB-5, too, with a number using such funds to finance big projects. Related Cos, the developer of New York City's Hudson Yards, raised a record $600M, using a "cash-for-visa" deal structure. Most recently, Macklowe Properties revealed plans to raise $100M in EB-5 funds for 1 Wall St, a $1.5B condo conversion in Lower Manhattan.
If left to expire, it could have a big impact on new developments. "If the EB-5 program were to expire," RCA senior vice president Jim Costello tells Bisnow, "close consideration of the opportunity costs of this program vs. the benefits of new jobs should be looked at closely by policy makers."
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