EB5 Capital Celebrates the Opening of Downtown Los Angeles Proper Hotel

WASHINGTON, Oct. 18, 2021 (GLOBE NEWSWIRE) — EB5 Capital joins The Kor Group in celebrating the grand opening of the Downtown LA Proper Hotel in Los Angeles, California. Downtown LA Proper is a 13-story, 148-room luxury lifestyle hotel in the heart of Downtown LA. The property showcases the vision of internationally acclaimed designer Kelly Wearstler, who blends modern influences with vintage elements, referencing the site’s history. The property was initially a private club in the 1920s frequented by members of Hollywood.

“We are very excited to celebrate the opening of the Downtown LA Proper,” said Patrick Rainey, EB5 Capital Senior Vice President of Investments. “Since our initial introduction to the project, we have been excited about what the Proper brand will offer to such an exciting and growing market in Downtown Los Angeles.”

The property features three distinct food and beverage spaces operating in partnership with James Beard Foundation award winners Suzanne Goin and Caroline Styne of The Lucques Group. In addition, there are 14,000 square feet of meeting space and a rooftop pool with unobstructed panoramic views of the city. Downtown LA Proper will be managed by Proper Hospitality, which was named “Hotelier of the Year” in 2020 by Hospitality Design. Proper Hospitality has an award-winning portfolio of luxury lifestyle hotels and residences that offer unique design, world-class amenities, original food and beverage collaborations, and diverse cultural programming.

EB5 Capital invested more than $65 million in this project. “The opening of Proper Hotel is an important milestone to our investors,” said Nhat Phuong Huynh, EB5 Capital’s Vice President of Investor Relations. “Our investors – all of whom are foreign – come from ten different nationalities, and they have all been anticipating this hotel opening since they first invested with us.”

LA-based real estate developer, The Kor Group, has developed Proper Hotels in three other locations, including San Francisco, Santa Monica, and Austin (Hotel and Residences). New developments are in the works for Miami and Portland.

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Roadside Development Repays EB5 Capital’s Investment in City Market at O Street

Washington, DC – Roadside Development joins EB5 Capital in celebrating the repayment of EB5 Capital’s $12.5 million mezzanine loan invested in Roadside’s City Market at O Street project in the Shaw neighborhood of Washington, DC.

City Market at O Street is a one million square foot, mixed-use development in the heart of the Shaw neighborhood at 7th & O Streets NW. The project features 650 multifamily units, including a 90-unit affordable apartment building for the 55+ community, a 182-room Cambria Suites Hotel, and 90,000 square feet of retail including a grocery store. Originally built in 1881, the historic O Street Market, one of three 19-century public market buildings still standing in the city, is the cornerstone of this project. The market was restored into a state-of-the-art 78,000 square foot Giant Food Store.

The project financing included a complex mix of private and public funding sources. The more than $315 million multi-phased project incorporates private land and cash equity investments and $102 million of EB-5 financing, the first project in DC to receive EB-5 financing. The capital stack also included mezzanine debt, $35 million in tax-increment financing (TIF) bond proceeds from the District of Columbia, and a $128 million HUD-insured Section 220 multifamily mortgage, one of the largest ever for a mixed-use deal. This was a landmark project for the U.S. Department of Housing and Urban Development and was the only mixed-use development designated by the Obama Administration in 2011 as a high-priority project to be fast-tracked for its significant merit and job creation.

EB5 Capital participated in two phases of financing for this project. The first phase was repaid in 2014 and the second phase was successfully repaid this month. All eligible investors have received their permanent Green Cards and their capital back.

“Extraordinary creativity on the part of our financing team enabled us to achieve many milestones including accelerated delivery of senior housing and 15% more affordability,” said Richard Lake, Managing Partner at Roadside Development. “The innovative capital stack also facilitated an inventive approach to the infrastructure design and development that supported critical architectural and urban design objectives for the project and overall neighborhood.”  

City Market at O Street ultimately repositioned two key city blocks in the heart of Shaw catalyzing over $1 billion in new investment dramatically improving the linkage of the historic Shaw neighborhood and Downtown. Roadside’s commitment to community-led to their funding a skills training initiative; 51% of new construction jobs went to area residents and $192 million of contracts to DC CBE’s, and over 2,400 jobs, including many for DC residents. “City Market at O Street is a perfect representation of what an EB-5 investment can do to help create needed jobs and increase the viability of underdeveloped neighborhoods,” said Angel Brunner, EB5 Capital’s CEO. “As we move into the new year, we expect EB-5 financing to be a key contributor in the COVID-19 economic recovery, similar to the way it served in the aftermath of the Great Recession of 2008. We look forward to welcoming investors and continuing this work in cities across the U.S.”


About Roadside Development, LLC

Roadside Development is a Washington DC-based real estate firm that values and invests in people – our employees, partners, business associates, and local communities. The high quality of our projects reflects that value and investment. Whether it is a catalytic urban redevelopment project or a large suburban mixed-use lifestyle center, Roadside Development is committed to providing only professional, innovative, and solution-based real estate services. Roadside Development is known for the successful adaptive reuse of City Market at O, Cityline at Tenley and the former Fannie Mae Headquarters – currently under construction. Learn more at www.roadsidedevelopment.com

About EB5 Capital

EB5 Capital is a leader in the EB-5 immigrant investor industry, raising $800 million in foreign capital from investors in more than 70 countries for investment in job-creating real estate projects across the United States. EB5 Capital owns and operates five USCIS-authorized Regional Centers that serve 14 states and the District of Columbia. With a portfolio of 28 projects, EB5 Capital maintains a 100% project approval rate from the USCIS. For more information, visit http://www.eb5capital.com.