The developer, Moinian Group, of 3 Hudson Boulevard, is seeking up to $350 million in funding from EB-5 investors.
The EB-5 financing would be arranged by George Washington Immigration Group, an EB-5 Regional Center, and would be structured as limited partnerships.
On November 3, 2017, 3 Hudson Boulevard broke ground on the 53-story, 2 million square foot office tower located in New York's Hudson Yards District.
According to the Moinian Group's website, "Hudson Yards is the largest private real estate development in the history of the United States and the largest development in New York City since Rockefeller Center."
The Moinian Group and 3 Hudson Boulevard have faced multiple challenges with both funding and tenants. The Real Deal reports that the Moinian Group has not yet secured a construction loan. According to TRD, they are "looking for a debt and equity package of up to $3 billion to pay for the tower."
In an earlier article from The Real Deal, it was reported that the Moinian Group lost its anchor tenant, Pfizer to a rival project. Additionally, the developer has shaken things up in the last few months by replacing various members of their team.
Why might the Moinian Group seek EB-5 Program funding?
EB-5 funding is attractive to developers who need alternative means to raise large amounts of capital for their projects. Wealthy foreign entrepreneurs invest $500,000 in return for U.S. green cards for their immediate families. Due to their desire for green cards many EB-5 investors are willing to accept low-interest returns on their investments.
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