An EB5 Project is the product of investments from foreign nationals who wish to qualify for the EB-5 Visa Program. EB5 Project investors should meet the minimum investment and job creation requirements of the EB-5 Visa Program to obtain permanent residence in the US. The EB-5 Visa is an immigrant program for foreign investors that allows them to permanently live in the US through EB5 Investment Projects for economic growth.
The minimum investment for EB5 Projects is $800,000 if in a Targeted Employment Area (TEA). A Targeted Employment Area (TEA) is a region with high unemployment or a rural area. The best EB5 Projects are in the hotel construction and real estate industries. Hotel construction and real estate EB5 Investment Projects have a consistent demand and ensure more than enough jobs to satisfy the requirements of the EB5 Visa. Below is a list of successful and completed EB5 Projects that allowed foreign investors to gain US permanent residence and a return on their investments.
- Europa Village Winery
- Marriott Residence Inn and Courtyard
- The Montage Hotel and Residences
- 9 Orchard Hotel
- Marriott Residence Inn
- Pennsylvania Convention Center
Table of Contents
1. Europa Village Winery Project
The Europa Village Winery is a completed EB5 Project in Temecula, California. The Europa Village Winery covers 45 acres on the top of the hill of the Temecula Valley Wine Region. The construction of the Europa Village Winery Project began in April 2016 and was fully approved by Riverside County to become a top vacation destination. Each winery was to be connected by a large boulevard to emulate the style of France, Italy, and Spain. Europa Village features an indoor and outdoor event and banquet area, 2 restaurants, a 60-room luxury hotel, a European-style spa, wineries, and various retail shops.
The total cost of the Europa Village Winery EB5 Project was $108.7 million. The required minimum investment from EB-5 investors for the Europa Village Winery was $500,000 per investor. The total EB5 investment amount gained was $12,700,000 with the EB5 Project ownership shares per investor at 0.651875. The expected capitalization value for the 5th year of business operation of the Europa Village Winery was $178,640,982. Plans were made to sell the Europa Village Winery EB5 Project to return the capital to the involved foreign investors.
The total number of jobs created from the Europa Village Winery EB-5 Project was 1,329 with a surplus job percentage of 51.02%. The developers planned to reimburse foreign investors from the EB5 Project’s revenue upon the first I-829 approval. Form I-829 (Petition by Investor to Remove Conditions on Permanent Resident Status) is used to remove the conditions on the permanent residency of foreign EB 5 investors. An approved Form I-829 grants foreign investors lawful permanent residence that allows them to live and work indefinitely in the US.
2. Marriott Residence Inn and Courtyard
Marriott Residence Inn and Courtyard is a dual-branded EB-5 Project at L.A. Live completed in June 2014. Marriott Residence Inn and Courtyard features 393 rooms, 10,800 sq. ft. of meeting space, a 24-hour business center and gym, a theatre/library, a pool deck, a bar/cafe, and a hotel store. Marriott Residence Inn and Courtyard sits near popular sites such as the Grammy Museum, Staples Center, and the Los Angeles Convention Center.
Marriott Residence Inn and Courtyard is an equity EB5 Visa Project financed by 333 immigrant investors from 12 countries. The immigrant EB-5 investors are earning approximately 8.0% annual return on investment.
The EB-5 Project received 100% approval of I-526 and I-829 petitions and total EB-5 capital of $181,000,000. Form I-526 (Immigrant Petition by Standalone Investor) is the first step in applying for an EB-5 Visa to show that the foreign investor has invested the minimum capital required to create at least 10 full-time jobs for U.S. workers.
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.