3. The Montage Hotel and Residences
The Montage Hotel and Residences is a finished EB5 Visa Project that opened in December 2021 in Big Sky, Montana. The Montage Hotel and Residences has 99 5-star hotel rooms and 39 private residences for sale. Montage Big Sky is Phase II of the multi-phased EB5 Project following the successful Phase I Yellowstone Club.
The Yellowstone and Montage EB5 Projects successfully raised EB-5 funding in spite of challenges brought on by the COVID-19 pandemic and the increase in the minimum EB5 investment. The Phase I EB-5 Project accumulated $23MM in EB 5 investments and was repaid in full including all interest on February 2020. The Phase I EB 5 Visa Project generated more than $400MM in condominium sales. The Phase II Montage Big Sky accumulated a $55,700,000 EB-5 loan. Both Phase I and Phase II EB5 Projects received Exemplar and I-526 approvals. Exemplar approval means that a particular EB5 Project has received the approval of the U.S. Citizenship and Immigration Services (USCIS).
4. 9 Orchard
9 Orchard is a luxury boutique hotel that was completed in quarter 2 of 2022. The 9 Orchard EB5 Visa Project is a 12-story building with 116 rooms, a bar, and a lounge in Lower Manhattan.
9 Orchard was expected to generate 2,094 jobs with a surplus of 1,470 jobs for 147 EB-5 investors and a 42% job cushion. The total cost of 9 Orchard Hotel was $190,000,000 and was already fully funded. The total EB 5 investment was $88MM and secured with a First Deed of Trust. The developer takes no profit until all EB-5 capital was fully paid. The EB5 Project received I-526 approvals with I-829 approvals still early for the project.
5. Marriott Residence Inn
Marriot Residence Inn is the first EB 5 Visa Project in Oregon which was completed in April 2014. Marriot Residence Inn is a 170,000 sq. ft. EB5 Project with 223 rooms and is the first hotel in the Pearl District of Portland.
Marriot Residence Inn was sold in the last quarter of 2019 to fully return all EB-5 capital with a 12% yield to foreign investors. Marriot Residence Inn construction amounted to $49.5 million and distributed a profit of $6,600,000 to EB-5 investors in its first 2 years. The total EB 5 investment was $51,000,000 from 88 foreign investors. All I-526 and I-829 petitions were approved for the Marriot Residence Inn EB-5 Project.
6. Pennsylvania Convention Center
The Pennsylvania Convention Center is a multi-use public facility in Philadelphia for conventions, conferences, and exhibitions. Pennsylvania Convention Center has been expanded with the help of EB-5 funding in 2011. A total of $122 million was received from 244 foreign investors for the expansion. The EB5 Project generated 3,095 jobs and all foreign investors and their dependents were granted unconditional permanent residence.
Which EB5 Project is Best for Foreign Investors?
The best EB 5 Investment Projects are in the hotel construction and real estate development industries. EB 5 Investment Projects in hotels and real estate are tangible investments that have a consistent demand. The construction and operation of a residential hotel generate more than enough jobs to meet the job creation requirement for each EB5 investor. EB5 Projects in combined hotel and real estate buildings are reliable sources of repayment for foreign investors.
Read more on how to invest in EB5 Hotel Construction Projects and EB5 Real Estate Projects.
Which EB5 Project has the Lowest Investment Rate for Foreign Investors?
EB5 Projects in a Targeted Employment Area (TEA) have the lowest minimum investment at $800,000. A Targeted Employment Area (TEA) is a region with high unemployment or rural areas. An EB5 rural area cannot have a population of more than 20,000 or be on the border of a municipality with more than 20,000 residents.
Investors in EB5 TEA Projects not only enjoy lower minimum investment but are also eligible for priority processing of their immigrant petitions. Investors in a Rural EB5 Project in particular are reserved 20% of the total allotted EB-5 Visas per year.
What is an EB5 Project?
An EB-5 Project is the result of the investment from foreign nationals who want to obtain permanent residence in the US through the EB-5 Visa. The EB5 Visa is an immigrant visa that requires a minimum investment that leads to at least 10 full-time jobs for US workers. Investors who successfully meet the investment and job creation requirements for EB5 Projects are able to change their 2-year conditional permanent residence to lawful permanent residence that is valid for 10 years.
When is the Best Time to Invest in an EB5 Project?
You should invest in an EB5 Visa Project before filing your I-526 petition. Form I-526 asks for information about your EB-5 investment to prove that you have the capacity to meet the minimum investment that comes from legal sources. Information about your EB-5 investment includes your investment type, your minimum capital, the composition of the investment, your net worth, and the sources of your capital.
How Long Does it take to Process an EB5 Project?
Investors in an EB5 Project expect between 29.5 to 61 months of processing for their I-526 petitions to qualify for an EB-5 Visa. An approved I-526 petition grants foreign investors a 2-year conditional permanent residence. Foreign investors should prove that they are able to meet the minimum investment and job creation requirements during their conditional permanent residence to be granted lawful permanent residence.
What are the Advantages of an EB5 Project?
EB5 Investment Projects benefit foreign investors and their dependents in the following ways.
- Direct path to US permanent residence. Investing in an EB 5 Visa Project does not require sponsorship from family members or employers. Foreign investors are able to petition for the EB 5 Immigrant Visa after investing in an EB5 Project.
- Education and employment opportunities. Permanent residents are allowed to work and study anywhere in the US. Children of foreign investors are eligible for lower in-state tuition and education assistance as permanent residents.
- Economic benefits. The best EB5 Investment Projects not only grant permanent residence to foreign investors but also enable investment returns if the EB5 Project is successful.
What are the Disadvantages of an EB5 Project?
Investing in an EB5 Visa Project carries risks that foreign investors should be aware of.
- Immigration risk. An investment in an EB5 Project does not automatically guarantee permanent residence. The foreign investor must be able to prove that he/she met the minimum investment and job creation requirements until the filing of the I-829 petition to gain lawful permanent residence.
- Investment risk. There is no guarantee of investment returns for EB-5 investors. The main benefit of the EB-5 Visa is US permanent residence.
- Fraud risk. EB-5 investors should perform thorough due diligence on EB5 Investment Projects to ensure that the developers are trustworthy and that the project itself is authentic and bound for success.
Which US Visa Holders are Eligible to Invest in an EB5 Project?
Nonimmigrant visa holders are eligible to invest in top EB5 Projects to obtain permanent residence in the US. A nonimmigrant visa is a stamp on the passport of foreign citizens that enables them to enter and reside in the US temporarily. Nonimmigrant visas with dual intent in particular can change their status to an EB-5 Visa without violating their status. Dual intent allows foreign citizens to apply for US permanent residence even on nonimmigrant visas.
Below are examples of dual intent nonimmigrant visa holders that are eligible to invest in top EB5 Projects.
- L-1 Visa for intracompany transferee managers and executives of global companies.
- H-1B Visa for specialty occupation workers.
- O-1 Visa for individuals with extraordinary abilities and achievements in sciences, arts, education, business, or athletics.
- E-2 Visa for foreign investors from countries with treaties of commerce and navigation with the US.
Is a Social Security Number Required to Apply for an EB5 Project?
No, you need to get an approved EB-5 Visa before obtaining a Social Security Number (SSN). A US Social Security Number (SSN) is issued to US citizens, permanent residents, and temporary working residents and is used as a national identification number for taxation and other purposes.
Is an Investment in an EB5 Project Risky?
Yes, the U.S. Citizenship and Immigration Services (USCIS) requires that EB 5 applicants make an “at-risk” investment to qualify for the EB 5 Visa Program. An “at risk” investment means that the EB5 Visa Project capital is subject to both gains and losses without a guarantee for repayment.
As an expert with a deep understanding of EB-5 Visa Projects, I'll delve into the key concepts and details mentioned in the provided article.
1. Montage Hotel and Residences:
- Location: Big Sky, Montana.
- Completed in December 2021.
- Comprises 99 5-star hotel rooms and 39 private residences.
- Part of a multi-phased EB5 Project, following the successful Phase I Yellowstone Club.
- Phase I raised $23MM in EB-5 investments, repaid in full by February 2020.
- Phase II Montage Big Sky accumulated a $55,700,000 EB-5 loan.
- Both phases received Exemplar and I-526 approvals.
2. 9 Orchard:
- Luxury boutique hotel in Lower Manhattan, completed in quarter 2 of 2022.
- 12-story building with 116 rooms, a bar, and a lounge.
- Expected to generate 2,094 jobs with a 42% job cushion for 147 EB-5 investors.
- Total cost: $190,000,000; EB-5 investment: $88MM.
- Secured with a First Deed of Trust; developer takes no profit until all EB-5 capital is paid.
- I-526 approvals obtained; I-829 approvals still early in the process.
3. Marriott Residence Inn:
- Completed in April 2014 in the Pearl District of Portland, Oregon.
- 170,000 sq. ft. EB5 Project with 223 rooms.
- Sold in the last quarter of 2019, fully returning all EB-5 capital with a 12% yield to foreign investors.
- Construction cost: $49.5 million; distributed $6,600,000 profit to EB-5 investors in the first 2 years.
- Total EB-5 investment: $51,000,000 from 88 foreign investors.
- I-526 and I-829 petitions approved.
4. Pennsylvania Convention Center:
- Multi-use public facility in Philadelphia.
- Expanded with $122 million from 244 foreign investors in 2011.
- Generated 3,095 jobs; granted unconditional permanent residence to investors and dependents.
Key Concepts:
- Exemplar Approval: Indicates approval from the U.S. Citizenship and Immigration Services (USCIS) for a specific EB-5 Project.
- I-526 Approval: A step in the EB-5 process confirming the investor's eligibility.
- I-829 Approval: Follows I-526 and confirms fulfillment of EB-5 investment and job creation requirements.
- Targeted Employment Area (TEA): Designation for areas with high unemployment or rural status, allowing a lower minimum investment of $800,000.
- Dual Intent: Allows certain nonimmigrant visa holders to apply for U.S. permanent residence without violating their status.
- Social Security Number (SSN): Not required for EB-5 application; issued post-approval for U.S. citizens, permanent residents, and working residents.
Considerations for Foreign Investors:
- Best EB5 Investment Projects: Hotel construction and real estate development due to consistent demand.
- Lowest Investment Rate: EB5 Projects in Targeted Employment Areas (TEAs) with a minimum investment of $800,000.
- Advantages: Direct path to U.S. permanent residence, educational and employment opportunities, economic benefits.
- Disadvantages: Immigration, investment, and fraud risks should be considered.
- Eligible Visa Holders: Examples include L-1, H-1B, O-1, and E-2 visa holders with dual intent.
Timing and Processing:
- Best Time to Invest: Before filing the I-526 petition.
- Processing Time: Expected between 29.5 to 61 months for I-526 petitions.
- Investment "At Risk": A requirement for EB-5 eligibility, indicating capital is subject to gains and losses.
This comprehensive overview provides insights into various EB-5 projects, investment considerations, risks, and the procedural aspects of the EB-5 Visa Program.
