The New York City Regional Center (“NYCRC”) is pleased to announce the repayment of its $60 million EB-5 loan used to assist the continued redevelopment of the Brooklyn Navy Yard, New York City’s largest industrial park. The borrower of the EB-5 capital was the Brooklyn Navy Yard Development Corporation. The $60 million investment and resulting job creation enabled 359 individuals (investors and family members) to receive permanent residency in the United States under the EB-5 Immigrant Investor Program.This was one of seven (!) low-interest loans via the NYCRC, totaling $339 million, used for projects in the Navy Yard, including--new to me--the coming supermarket on what was Admirals Row.
...The $60 million loan from the NYCRC provided much needed capital for the renovation of a 215,000 square foot industrial building in the Navy Yard. The building was previously used as a machine shop for the United States Navy during World War II but had sat vacant for decades. The project transformed the building, now named the Green Manufacturing Center, into New York City’s leading hub for green manufacturing and sustainable design. EB-5 capital was also used to assist with surrounding infrastructure improvements in the Navy Yard such as the building of new roads, water and sewer lines, and pile foundations and bulkhead walls to allow for the continued use of dry docks and adjacent berths to support maritime activity in the New York harbor.
Another intermediary, the U.S. Immigration Fund, has raised an additional $349 million for Atlantic Yards/Pacific Park
It was a refinancing
Do note that the EB-5 investors, who put up $500,000 and accept very low interest--the borrower pays low interest (about 3%-5% back then, more now, but intermediaries keep a good chunk)--haven't been repaid from Navy Yard revenues.
Rather, as the Real Deal reported 12/22/16, Brooklyn Navy Yard refinances $60M EB-5 loans:
The Brooklyn Navy Yard landed two loans from Sterling National Bank and Symetra Life Insurance Company to refinance $60 million in EB-5 debt.That covers the original loan plus financing costs. The seven-year EB-5 loan was likely interest-only.
The $30.75 million loan from Sterling carries a 15-year term, and the $31.68 million Symetra loan has a 21.5-year term.
The interest rates on the new loans were unmentioned, but surely they are higher than that paid under the EB-5 program, as investors care far more about green cards and getting their money back than earning much return.
The question then: what will be the terms on the Atlantic Yards refinancing.