Mid Atlantic Real Estate Journal — Financial Digest — November 8 - 1, 013 — 5B
www.marejournal.com
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By Paul Braungart, Regional Capital Group A new economy: EB-5 signals investment in people, not projects
C
ommercial real estate development is increas- ingly turning to EB-
an increase in consumer opti- mism, in both commercial and residential sectors, the first signs of economic regrowth are not enough for traditional in- vestors to begin new projects. EB-5 provides a very flexible low cost of capital for real es- tate projects that create jobs. There is a tremendous flow of capital into regional centers with $2.4 billion invested in 2012 and $5 billion projected in 2013. It is an alternative source of funding not provided by typical sources and can be structured to supplement traditional institutional debt.
EB-5 can be in the form of se- nior or subordinate debt. EB-5 is an alternative fi- nancing option for qualified, job-creating projects focused on construction and invest- ments in commercial real estate, healthcare, hospitality, recreation, andmanufacturing sectors. Investors seek a green card and recovery of their prin- cipal. Safety of the investment is the key investor criteria along with the track record of the principals and viability of the business plan. During 2013, Regional Capi- tal Group was instrumental in
launching New Jersey EB-5 Regional Center. Launched in March 2013, New Jersey EB-5 Regional Center is designated by the U.S. Citizenship and Immigration Services (USCIS) as a qualifying participant (Regional Center) in the Im- migrant Investor Program. The Regional Center will focus on promoting economic growth and job creation through capi- tal investment opportunities. As we move into an invigo- rated landscape in commercial lending, the EB-5 program has the potential to create hundreds of thousands of jobs
for American workers at no cost to taxpayers. This amaz- ingly innovative economic de- velopment platform will play a critical role in keeping the American economy strong, ro- bust and competitive with the many other nations around the world who actively court investors and their capital. There are great opportunities as the EB-5 landscapematures and program participants find increasingly more creative ap- plications for EB-5 capital. Paul Braungart is found- er and president of Region- al Capital Group. n
5 programs and inves - tors to spear- head projects across the na- tion, due to the continued lack of tradi- tional fund- i n g . Wh a t
Paul Braungart
this means for the United States is tremendous economic opportunity – a resurgence of not only hope, but confir- mation, that the commercial real estate market is not only recovering, but positioning to thrive. One better, the impact EB-5 carries for the enrichment of the most important element in any project – the human fac- tor – is significant. The EB-5 program is a rare commodity in the world of investments, appealing to investors as a path to U.S. residency, and to entrepreneurs as a truly pow- erful opportunity for foreign investment. EB-5 is a tremen- dous business catalyst that, when used knowledgeably, can yield incredible results. While national reports find Investment RE hires Vrankin as accounting manager YoRK, PA —Locally owned and operated Investment Real Estate, LLC announced
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