Due to the present credit crunch and slowdown of the Manhattan luxury real estate market, developers are finding it difficult to gain financing for their projects. Extell, the developer of One57 at 157 W 57th street, is working on what would be the tallest residential tower yet. At a cost of approximately $2 billion, Extell has already started construction on the lower floors but does not yet have the funds for the upper floors. So they are turning to the EB-5 visa program which allows a foreign national to invest $500,000 to $1million in exchange for a green card. This program is capped at 10,000 visas per year and is very popular with the Chinese. Many feel that the EB-5 program is being used contrary to it’s intent which was to spur construction and create jobs in poorer areas. The Central Park Tower will have a Nordstrom on the lower floors.
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NYC developers who have used the EB-5 immigrant investor program to finance large scale luxury developments should be pleased that the program has been extended. The extension is expected to pass later this week and will give the program 10 more months. At which time, Congress and the real estate lobby can try to come to an agreement to change it. The current setup allows 10,000 visas a year to investors who put up at least $500,000 in job-creating businesses. Interestingly enough, having spoken to immigration attorneys this may not be the best program out there depending on an investor’s needs and desire to remain in control of their funds.
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News about the NYC real estate residential and commercial markets provided and interpreted by an industry veteran licensed since 1999. Brian Silvestry of BSRG Inc. Licensed real estate broker