Washington, DC – After many project delays and some very difficult negotiations to protect its investors, EB5 Capital is pleased to announce the closing and subsequent groundbreaking of 300 M, the firm’s 17th EB-5 partnership. 300 M is a 457-unit, Class A multifamily development with approximately 10,000 square feet of ground-floor retail, located in the NoMa neighborhood of Washington, DC.
In April 2019, the site’s original developer announced it would not move forward with construction of the project, choosing instead to sell the land. The decision to halt development of the project placed EB5 Capital’s 49 EB-5 investors, their capital, and respective immigration processes into jeopardy.
“Having a partner decide to pause plans to develop a site tied to EB-5 money is a disastrous prospect for clients’ whose successful immigration to the United States is wholly dependent on subsequent job-creation from that investment,” said Brian Ostar, President of EB5 Capital. “There are a lot of Regional Centers that might have packed up, apologized to its clients, and taken the loss.”
After a rigorous marketing process, the buyer list for the site was narrowed in late 2019, with LCOR winning the selection process in February 2020. LCOR closed on the land and its partnership with EB5 Capital in June 2020. M&T Bank and Santander are providing the construction financing, which closed in July. EB5 Capital is investing $24.5 million in preferred equity into the development, which will be the firm’s 5th EB-5 project in the NoMa neighborhood, all within walking distance of one another.
“This experience tested our firm’s willpower and resiliency,” said Jon Mullen, Senior Vice President of Investments at EB5 Capital. “Looking back, the sale of the land and providing for a new development partner with a proven track record afforded a win-win pathway to getting shovels in the ground, delivering for our clients and the local economy through job-creation.”
About EB5 Capital
EB5 Capital is a leader in the EB-5 immigrant investor industry, raising over $750 million in foreign capital from investors in more than 65 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.