EB-5 investments have become a trend within South Florida real estate development over the past year, and are now mixed with other, more traditional investment types. As Congress recently approved a three year extension of the EB-5 Immigrant Investor program, it’s usage is expected to become even more popular with time.
The EB-5 Program provides a way for developers to increase traditional financing sources and provide capital to projects and businesses that otherwise qualify under the USCIS guidelines. Projects have been completed all over the country using this means of financing, including stadiums in California, research centers in Vermont and hotel and multi-use developments in Florida.
Almost all investments come through a commercial real estate project, whether it is retail, office space or a mixed-use project. The program has brought in over $3 billion dollars in commercial real estate developments across the country since its inception.
In South Florida, several projects are in development, or have just begun, thanks to EB-5 funding. Among them is a 700-unit housing project near Nova Southeastern University in Davie, a steel mill to be located in northeast Miami-Dade County, a luxury condominium complex in Boca Raton and a multi-use facility in Jupiter.
The EB-5 program has the potential to foster significant development through the South Florida community, as well as help boost the commercial real estate industry. Furthermore, as EB-5 investors gain Green Cards through their investments, the private real estate industry should see a boom as well, as investors and their families will soon follow.